New Delhi [India], August 4 : Shares of food aggregator and delivery company Zomato soared sharply Friday after it reported its first-ever quarterly profit.
At the time of writing this report, Zomato shares were trading over 10 per cent higher at Rs 95.30. Its intraday high and low were Rs 98.4 and Rs 88.4, respectively.
The company reporting profits led to strong interest in its stocks by investors.
The food delivery platform yesterday reported a consolidated net profit of Rs 2 crore for the April-June quarter of 2023 against a loss of Rs 186 crore in the same quarter last year, data showed. It reported a loss of Rs 189 crore in the January-March 2023 quarter.
Further, moving on to its revenue from operations, it was at Rs 2,416 crore in the June quarter, a 71 per cent against from Rs 1,414 crore reported in the year-ago period.
“Zomato has delivered profitability earlier than promised. There is clarity on vastly improving revenue growth. This company in a duopoly business has a long runway for growth,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“For those investors who bought at low rates partial profit booking is fine. It makes sense to remain invested in this growth stock,” Vijayakumar said.
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 per cent.
Even though the company reported healthy gains on its listings on the stock exchanges back then, it could not capitalize on it later.
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