Zomato posts 71% y-o-y growth in Q2FY24 revenue; stock hits 52-week

6 Nov 2023 , 11:51 AM

Zomato, an online food delivery company, announced on Friday that its earnings for the quarter ending September 2023 increased dramatically to Rs 36 crore. In the previous June quarter, the business reported a surprise profit of Rs 2 crore and a loss of Rs 251 crore.

Revenue from operations increased 71% year on year (YoY) to Rs 2,848 crore, above Street forecasts of Rs 2,607 crore.

Following this development, the company’s counter jumped to a new 52-week high of Rs 121.90, against the previous close of Rs 116.50 on NSE.

GOV across its B2C operations (food delivery + fast commerce + going-out) increased 47% year-on-year to Rs 11,422 crore.

GOV rise was exclusively driven by increased order volume, while average order value remained almost unchanged. Another important driver of GOV growth was the increasing acceptance of Zomato’s ‘Gold’ programme, which resulted in greater ordering frequency among members.

Food delivery GOV increased by 20% year on year and is expected to be rebounding well from the demand downturn seen in the latter two quarters of FY23.

At around 11.49 AM, Zomato was trading 3% higher at Rs 120, against the previous close of Rs 116.50 on NSE. 

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