Team Blitz India
NEW DELHI: Zomato share prices gained more than 10% and scaled 52 week highs of Rs 120 on November 4 after the company reported a net profit of Rs 36 crore during July-September quarter for fiscal 2023-24 (Q2FY24).
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 Rs 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 Rs 2,848 crore, registering a growth of 72 per cent, compared to Rs 1,661 crore in the year-ago period.
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 to second quarter of FY24. 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.
