Zomato Hits 52-Week High, Surges 6% on Q3FY24 Net Profit of ₹138 Crore

12 Feb 2024 , 04:05 PM

Zomato’s shares surged 6% on February 12, reaching a new 52-week high of ₹158.80 on the NSE. The rally follows the food aggregator’s Q3FY24 net profit of ₹138 Crore, a significant turnaround from the ₹347 Crore net loss in the previous fiscal year.

Zomato’s contribution margin, a key profit metric, expanded to 7.1% in the December quarter, attributed to the introduction of a platform fee for food deliveries.

By 1.38 pm, the stock traded 3% higher at ₹155.20 on the NSE, showcasing a remarkable 200% rally in the past year, outperforming the Nifty benchmark’s 21% rise. At the time of the writing, the stock was trading at ₹153.80 which is a 2.91% hike from than previous close.

Blinkit, Zomato’s quick commerce business, saw a doubling of its gross order value (GOV), while the mainstay food delivery business grew by 27%, contributing to a 69% YoY revenue jump to ₹3,288 crore.

Zomato, founded in 2008 by Deepinder Goyal and Pankaj Chaddah, operates as an Indian multinational restaurant aggregator and food delivery company.

The platform provides information, menus, and user reviews of restaurants, along with food delivery options in over 1,000 Indian cities and towns as of 2022–23. Zomato competes with Swiggy in the food delivery and hyperlocal space.

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