Zomato breaches $10 billion market cap mark on the back of maiden profit

economictimes.indiatimes.com:

Zomato’s market capitalisation crossed the $10 billion mark on Friday after the company’s shares surged more than 14% to reach a 52-week high of Rs 98.39. The company was valued at $12 billion during its initial public offering in July 2021. On August 3, Zomato reported its first-ever consolidated quarterly net profit at Rs 2 crore, on the back of higher order frequency from subscribers of its loyalty programme.

It had reported a loss of Rs 186 crore in the year-ago period. In May, the Deepinder Goyal-led company had said it would turn profitable on a consolidated basis within the next four quarters. The company’s shares closed at Rs 86.22 on August 3 and opened up 3% at Rs 89 on August 4.

At 1:50 pm on August 4, Zomato’s shares were trading at Rs 94.84 on the BSE. Revenue from operations for the reporting quarter stood at Rs 2,416 crore, up nearly 71% from Rs 1,414 crore in the year-ago period. Consolidated adjusted EBITDA stood at Rs 12 crore, versus a loss of Rs 152 crore in Q1FY23.

Shares of Info Edge, one of Zomato’s earliest investors, also touched a 52-week high. The Noida-based investor’s shares closed at Rs 4,534.35 on August 3, reaching Rs 4,849 on August 4, up almost 7%.Profit amidst markdowns for Swiggy Zomato’s profitable turn comes in the midst of valuation markdowns for its main rival Swiggy. Swiggy’s Atlanta-based investor Invesco has marked down its value by 33%, ET had reported in May.

Invesco had earlier marked down its investment in Swiggy by 23%, as ET reported in April. Another US-based asset management firm, Baron Capital Group, marked down its valuation of Swiggy by 34% to $7.1 billion as of December 2022. The investor had participated in Swiggy’s January 2022 funding round, when the