Zomato announced a 389% increase in net profit, reaching Rs 176 crore for Q2 FY25, compared to Rs 36 crore in the same quarter last year. Revenue grew 69% year-on-year from Rs 2,848 crore to Rs 4,799 crore, supported by a surge in customer orders, according to stock exchange filings.
Quarter-on-quarter, revenue rose from Rs 4,206 crore in Q1 FY25 to Rs 4,799 crore in Q2 FY25. “The business remains steady and continues to grow well,” said CFO Akshant Goyal. Despite the strong results, shares fell 3.5% to Rs 256.55 on October 22. However, the stock has gained 107% year-to-date on the NSE.
The board of Zomato approved raising up to Rs 8,500 crore through QIP to strengthen its war chest amid rising competition. Cash reserves of the company have fallen from Rs 14,400 crore in July 2021 to Rs 10,800 crore at present.
This was necessary to fill up the cash balance given the competitive landscape and business scale,” Group CEO Deepinder Goyal said in the note. “Capital does not equal success; quality of service is paramount. But we do need a level playing field,” Goyal said.
It has also made a small investment of Rs 6,000 in Byondnxt- an innovator in kitchen appliances by Eshwar Vikas. As of now, the company already owns 16% stake in Mukunda Food Pvt Ltd – a company in which Zomato made an acquisition in January 2022.
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Source: Moneycontrol
News Desk
