Zomato continues to remain profitable in Q2; shares soar 10%

Food aggregator and delivery company Zomato continued to be profitable for the second straight quarter. The company reported Rs 36 crore as net profits during the July-September, as against Rs 251 crore loss incurred in the same quarter last year.

Notably, Zomato for the first time reported quarterly profits in the April-June 2023 period.

Meanwhile, the food aggregator's revenue from operations was up 72% at Rs 2,848 crore versus Rs 1,661 crore same quarter of 2022.

At the time of filing this report, the shares of Zomato were as high as 6.60% from its previous day closing at Rs 114.65. So far in 2023, the company's shares jumped over 50%.

In the June quarter, the food delivery platform reported a consolidated net profit of Rs 2 crore, against a loss of Rs 186 crore in the same quarter last year. It reported a loss of Rs 189 crore in the January-March 2023 quarter.

Deepinder Goyal, CEO of Zomato today said the growth momentum it witnessed in Q1FY24 continued in Q2FY24, driven by healthy growth across all its businesses.

July marked Zomato's completion of its second year as one of the new-age companies listed on the Indian stock exchanges.

Listed on July 23, 2021, the food aggregator's initial public offering was a success as it was subscribed 38.25 times. It made a stellar debut at a premium of 53%.

Even though the company reported healthy gains on its listings on the stock exchanges back then, it could not capitalize on it later.