Why Zomato Share Price is Rising Today
quarterly numbers that came as a surprise to many investors. On the other hand many were expecting the company to turnaround soon. Yesterday, Zomato share price spiked around 15% in intraday trade.
Let’s find out why… Zomato’s revenue spiked by 54% in the June 2023 quarter and came in at ₹27,860 million (m). In a big relief to shareholders, the company reported positive adjusted earnings before interest, tax, depreciation, and amortisation (EBIDTA) of ₹120 m in the quarter under review. Consolidated adjusted EBITDA improved by 92.6% as compared to the same period in the previous year.
Zomato also reported a profit after tax (PAT) of ₹20 m. The company finally turned profitable for the first time. Note that the optimism comes after Zomato achieved the profitable status much earlier than the guidance provided.
The growth in first quarter can be attributed to rising demand and cooling inflation. Zomato’s loyalty programme also helped bring in more revenue. The quarter under review showed some signs of recovery of demand after the sluggish growth that the company saw in the past few quarters.
The demand grew by 11%. Although modest, the number shows the company’s potential for growth. It highlights growth despite tricky weather conditions and torrential rains that impacted not just demand but also the delivery partners.
The company expects for the growth momentum to continue and it will continue to grow profits in the upcoming quarters as well. That’s what the company has highlighted while presenting the first quarter results. Blinkit’s gross order value (GOV) is very close to Zomato’s GOV in some large cities where they have an overlapping presence.
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