Zomato shines in Q2 FY24 with back-to-back profit and revenue growth; details inside

Zomato, the Indian online food delivery giant, announced its second-quarter results for FY24. According to the details, the company’s top line, that is, revenue from operations, grew significantly by 71%, from Rs 1,661 crore to Rs 2,848 crore in the September quarter of FY24.

The company bifurcated the revenue into four major segments. Breaking down this revenue of Rs 2,848, the Indian food ordering and delivery business reported Rs 1546 crore, which is a 36% YoY growth from Rs 1,136 crore.

The second segment, Hyperpure, which is the company’s farm-to-fork supplies offering for restaurants in India and the sale of items to businesses for onward sales, reported revenue of Rs 745 crore, an impressive 123% growth compared to Rs 334 crore in the last year’s same quarter.

The Quick commerce business of the company comprises an online marketplace platform (the “Marketplace”) that facilitates the rapid delivery of products through a network of stores, reporting a remarkable 255% growth YoY, from Rs 142 crore to Rs 505 crore during the quarter while the Going-out segment, which is a combination of our Dining-out and Zomato Live business verticals, reported revenue of Rs 49 crore compared to the Rs 26 crore in the same quarter last year.

On the other hand, the bottom line, which is the net profit of the company, grew significantly from Rs 2 crore, as reported by the company in the June quarter of FY24, to Rs 36 crore, representing an impressive growth of 1,700% QoQ. When we compare the company’s net profit YoY, in the same quarter last year, the company reported a loss of Rs 251 crore and this year, it reported a profit of Rs 36 crore.

“The growth momentum we witnessed in Q1 FY24 continued in Q2 FY24, driven by healthy growth across all our businesses,” said Chief Executive Officer Deepinder Goyal in the shareholder letter.”

Following this announcement, the shares of the company started to rally and surged over 11.5% during the day, reaching a significant price of Rs 120 per share. At the beginning of the day, the stocks opened at Rs 108.85 per share, which was a 1.25% increase from the previous day’s closing price of Rs 107.50 per share on the BSE.

The current market capitalisation of the company stands at Rs 1,00,155.75, and the stock has generated an impressive return of 84% in the last six months alone.

Investors must keep this stock on their radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.