Zomato logs third straight quarter of profit in Q3, revenue up 69%

February 08, 2024 03:36 AM PST | By Invezz

Zomato logs third straight quarter of profit in Q3, revenue up 69% — Image source: Invezz

Factors driving strong performance

Zomato’s stellar performance in the third quarter can be attributed to increased demand during prominent events such as the Cricket World Cup and the festive season.

The surge in demand has bolstered the company’s revenue streams, particularly in its food delivery business, which witnessed a remarkable 48 per cent growth during the quarter.

Rapid growth in revenue

The company’s consolidated revenue soared to Rs 3,288 crore during the quarter, marking a remarkable 69 per cent increase compared to the same period last year.

Zomato’s contribution margin, a critical profitability metric, saw a notable increase to 7.1 per cent, up from 6.6 per cent in the second quarter. This growth was attributed to the successful implementation of a customer fee on the food delivery platform.

Promising performance across business segments

Zomato’s quick commerce division also showcased remarkable growth, with revenue more than doubling during the quarter. Moreover, the gross order value (GOV) at Blinkit, Zomato’s grocery delivery arm, more than doubled, further underscoring the company’s robust performance across multiple segments.

Challenges and outlook

Despite its overall strong performance, Zomato acknowledged that the growth in its food delivery segment fell short of expectations due to subdued demand. However, the company remains optimistic about future prospects and expects the GOV to increase by more than 20 per cent in the coming quarters.

Market response

Following the announcement of its strong Q3FY24 results, Zomato’s shares witnessed a positive trajectory, rising more than 3 per cent. However, at the close of trading, Zomato shares ended 1 per cent higher at Rs 142 on the Bombay Stock Exchange (BSE).

JPMorgan has maintained an ‘overweight’ call on the stock after the food delivery company.

The post Zomato logs third straight quarter of profit in Q3, revenue up 69% appeared first on Invezz

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video (Content) is a service of Kalkine Media LLC., having Delaware File No. 4697309 (“Kalkine Media, we or us”) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.