This Article is From Nov 11, 2021

Zomato Surges 6% After Revenue More Than Doubles In September Quarter

Zomato share price today: On Thursday, Zomato opened on the BSE at Rs 135.75 swinging to an intra day high of Rs 144, and an intra day low of Rs 132.70, so far.

Zomato Surges 6% After Revenue More Than Doubles In September Quarter

Zomato reported a net loss of Rs 435 crore in the September quarter

Shares of leading online food delivery platform Zomato gained six per cent to hit an intraday high of Rs 144 on Thursday, November 11, a day after its revenue from operations more than doubled to Rs 1,024 crore in the July-September quarter of the current fiscal buoyed by a strong food delivery business and a rebound in the restaurant sector. However, Zomato's net loss widened to ₹ 435 crore from loss of Rs Rs 229 crore in year-ago period, due to increased delivery costs on rising fuel prices.

Zomato Q2 Results: All You Need To Know

  1. Zomato's revenue from operations stood at Rs 426 crore in the corresponding period last year, marking a growth of 140 per cent annually for the September quarter in current fiscal. 

  2. On Thursday, Zomato opened on the BSE at Rs 135.75 swinging to an intra day high of Rs 144, and an intra day low of Rs 132.70, in the trading session so far. At 11:15 am, shares of Zomato were trading 2.76 per cent higher at Rs 139.50 apiece on the BSE.

  3. However, Zomato's net loss widened to Rs 435 crore in the September quarter, compared to Rs 229 crore in the year-ago period. The company attributed its loss due to a rise in branding and marketing expenses, expansion into smaller towns and increased delivery costs on rising fuel prices.

  4. The delivery cost per order increased by Rs 5 per order in the September quarter, compared to the preceding April-June quarter, on account of prolonged and unpredictable rainy season - which still continues in many parts of the country, and a sharp increase in fuel prices.

  5. The India food delivery gross order value (GOV) in the September quarter grew 19 per cent sequentially and 158 per cent annually to Rs 5,410 crore, driven by an increase in the number of transacting users, active food delivery restaurants and active delivery partners on Zomato.

  6. The company said it is in the process of selling Fitso to Curefit (Curefit Healthcare Private Limited) for $50 million, with an additional investment of $50 million in net cash in Curefit plus, which will give it a cumulative shareholding of 6.4 per cent worth $100 million in Curefit.

  7. Zomato signed definitive documents for investing $75 million in a B2B logistics-tech company Shiprocket for an eight per cent stake as part of a larger $185 million round. It also signed a pact with Samast Technologies for a 16 per cent stake as part of a total round size of $60 million.

  8. Including its $100 million investment in Grofers in August 2021, Zomato has now committed $275 million across four companies over the past six months.

  9. "Our core food related businesses food ordering and delivery, dining-out, and hyperpure (B2B supplies for restaurants) will remain the key value drivers for Zomato for the next few years,'' said Zomato in its statement.

  10. Overall, the customer traffic on the company's India platform increased to 59 million average monthly active users in the July-September quarter, compared to 45 million in the preceding April-June quarter. 



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