Zomato share price jumps over 10%, scales fresh 52-week high post Q2 results
Zomato share prices gained more than 10% and scaled 52 week highs of ₹120 on Friday after the company reported a net profit of ₹36 crore during July-September quarter for fiscal 2023-24 (Q2FY24) against a net loss of ₹251 crore in the corresponding period last year. On a sequential basis also Zomato net profit during Q2 marked a significant improvement over ₹2 Crore net profit it had clocked in the April-June quarter. It is the turnaround in performance of Zomato that has been aiding the investor confidence as the share prices of Zomato have risen more than 2.5 times compared to 52 week lows of ₹44.35 seen during January' 2023 on the BSE.
The online food delivery platform's revenue from operations in the second quarter of current fiscal came in at ₹2,848 crore, registering a growth of 72 per cent, compared to ₹1,661 crore in the year-ago period. The analysts already had been anticipating strong growth in Zomato revenues during the quarter. For Blinkit ( the acquired quick commerce company) analysts at Motilal Oswal Finacial Services had expected strong traction to continue d 2QFY24.
They expected Zomato's other subsidiary Hyperpure also continuing the growth momentum. Zomato is benefitting from the rising online food delevery demand in the country. The ongoing festival season and events as World cup are likely to support the performance during the ongoing quarter.
Analysts at Elara Securities India Pvt Ltd in a October Note had said that Cricket World Cup 2023 will boost delivery volumes for food aggregators which will propel better growth rates over the medium term. Zomato however remains cautiously positive on the sequential growth in demand during the ongoing (October-December) quarter. “While people order a lot
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