Zomato shares jump nearly 10% after its Q2 earnings report

Zomato, the online food delivery platform, experienced a nearly 10 percent surge in its shares on Friday following the announcement of a consolidated profit after tax of INR 36 crore for the second quarter ending in September 2023. This significant upturn was attributed to robust revenue growth.

The company's stock surged by 8.28 percent, settling at INR 116.40 on the BSE. It reached its 52-week high of INR 120 during the day, marking an 11.62 percent increase. On the NSE, it climbed 9.62 percent to INR 117.90.

The day's trading activity was substantial, with 83 lakh shares of the company traded on the BSE and over 23.88 crore shares on the NSE.

In the same quarter of the previous fiscal year, the company had reported a loss of INR 251 crore. However, in the second quarter of this fiscal year, it achieved revenue from operations amounting to INR 2,848 crore, compared to INR 1,661 crore in the corresponding period of the prior year.

Total expenses for the quarter under review were INR 3,039 crore, while in the same quarter a year ago, they were INR 2,092 crore, as indicated in a regulatory filing.

Founder and CEO Deepinder Goyal remarked, "The growth momentum we witnessed in Q1FY24 continued in Q2FY24 driven by healthy growth across all our businesses."