Despite recording increased profits quarter-on-quarter for Q4 FY24, Zomato shares declined by 6% to INR 182.10 on Tuesday (May 14th).
By 12:20 PM, Zomato’s trading price per share stood at INR 189.20, down from INR 193.70 at the previous day’s close.
The decline may be linked to broader apprehensions arising from the 2024 general elections. Market volatility, sparked by uncertainty surrounding the election results, has resulted in a downturn in equity markets.
Additionally, it’s possible that numerous investors are reevaluating their Zomato holdings to capitalize on profits following the quarterly financial update.
Continue Exploring: Zomato’s Q4 net profit surges 27% quarter-over-quarter to INR 175 Cr
The company announced its intention to heavily invest in the quick commerce business Blinkit, with plans to nearly double its store count by the end of FY25. This aggressive expansion is also expected to temper investor expectations around future profit growth.
In Q4FY23, Zomato’s consolidated net profit surged by 26.8% to INR 175 Cr from INR 138 Cr in the previous quarter. This marks a significant turnaround from the net loss of INR 187.6 Cr reported in the corresponding quarter of the previous fiscal year.
Nevertheless, Zomato experienced a decrease in the Gross Order Value (GOV) of its food delivery segment on a quarter-over-quarter (QoQ) basis. The GOV dropped to INR 8,439 Cr in the quarter under review, down from INR 8,486 Cr in the previous quarter. However, there was a notable 28% increase in GOV on a year-over-year (YoY) basis.
In March 2024, the quick commerce division Blinkit achieved positive adjusted EBITDA. The quarter saw a remarkable growth in its gross order value (GOV), surging by 97% year-over-year (YoY) and 14% quarter-over-quarter (QoQ) to INR 4,027 Cr. Additionally, the division’s operating revenue soared by 112% YoY and 19% QoQ, reaching INR 769 Cr.
Continue Exploring: Blinkit more valuable than Zomato’s food delivery business: Goldman Sachs
Blinkit’s adjusted EBITDA loss showed improvement, narrowing to INR 37 Cr in Q4 FY24 from INR 203 Cr a year earlier and INR 89 Cr in the previous December quarter.
Blinkit’s gross order value (GOV) surged by 97% year-on-year (YoY) to INR 4,027 Cr in the quarter that ended in March 2024.
Additionally, the company saw robust expansion in its B2B segment, Hyperpure. Revenue climbed by 11% to INR 951 Cr from the previous quarter’s INR 859 Cr. Moreover, the company successfully reduced losses in Hyperpure, with the adjusted EBITDA loss decreasing to INR 23 Cr in the March quarter, compared to INR 34 Cr in the December quarter.
Meanwhile, Zomato plans to issue 18.26 Cr employee stock options as part of its Zomato ESOP 2024 scheme, pending shareholder approval.
Continue Exploring: Zomato seeks shareholder approval for 18.26 Cr employee stock options plan
