Thu, 05 Oct 2023

New Delhi [India], August 3 (ANI): Shares of food aggregator and delivery company Zomato soared around 18-20 per cent on Tuesday after the company reported its net losses narrowing during the first quarter of 2022-23 (April-June).

During the quarter, the company's net losses were Rs 185.7 crore, as against Rs 343.1 crore same period last financial year.

Revenue from operations rose 67 per cent during the quarter to Rs 1,413.9 crore as against Rs 844.4 crore same quarter last year. Growth in revenue was driven by a rise in order values.

This morning, the shares, however, traded nearly 2 per cent lower.

July marked Zomato's completion of its first year as a new-age company listed on 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. At present, the share price of Zomato is, however, around 65-70 per cent down from its peak of Rs 169.

Even though the company reported healthy gains on its listings on the stock exchanges in July last year, it could not capitalize on it further.

Zomato shares recently slumped sharply after the one-year mandatory lock-in period for promoters, shareholders, and others ended. The lock-in period refers to that period for which investments cannot be sold or redeemed.

"In this past year, Zomato surpassed many milestones - we served more than 50 million customers and extended our market presence in the face of aggressive competition. We also delivered our billionth order in the past year and while it took us 6 years to reach the first billion, we are confident that we will reach the next billion much sooner," founder Deepinder Goyal told shareholders while releasing the earnings earlier this week.

The founder, however, said the margins are getting negatively impacted due to higher fuel costs and wage inflation.

On being asked about the outlook for the July-September quarter in terms of growth and profitability, he said: "Directionally, as we mentioned last quarter, we are aiming for revenue growth along with reducing losses. We cannot share more at this stage for the next quarter."Further, on the status of the transaction with Blinkit, it is now awaiting approval from stock exchanges.

Zomato's Board of Directors recently approved a proposal to acquire the cash-strapped quick commerce company Blinkit for Rs 4,447 crore. Blinkit was earlier known as Grofers. It believes the acquisition will help increase Zomato's hyperlocal delivery fleet utilization and reduce the cost of delivery. (ANI)

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