Zomato share price jumps over 10%, scales fresh 52-week high post Q2 results

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.

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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.

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Zomato however remains cautiously positive on the sequential growth in demand during the ongoing (October-December) quarter. 

“While people order a lot during festivals, they also travel and eat-out a lot more. The World Cup should result in additional orders, but we think that would also be limited to a handful of matches,” said Zomato in a regulatory filing to the stock exchanges.

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Updated: 03 Nov 2023, 05:28 PM IST