Zomato is making a loud buzz today; opening over 2% higher at Rs.144, the stock price went on to hit a new 52-week high at Rs.151.45, a rise of 5%. It is currently trading at Rs.46 levels.
The market has given the Q3FY24 earnings a big thumbs up after the company, reported a consolidated net profit of Rs.138 crore v/s net loss of Rs.347 crore (YoY). Its net profit in Dec quarter stood at Rs.36 crore.
This turnaround was on a 69% (YoY) jump in revenue from operations at Rs.3288 crore.
EBITDA, including its quick-commerce business Blinkit, was at Rs 125 crore while margins came in at 4%. Its mainstay, food delivery margin rose 50 bps to 7.1%.
The company said that the earnings were driven by better economies of scale and surge in subscriptions to their loyalty programme. The company said, in a letter to its shareholders that margins have been driven mainly by factors like greater ad monetisation and introduction of platform fees.
Zomato also announced that it will have its largest warehousing space in the country at Sumadhura Logistics Park on Hoskote-Chintamani Road on the outskirts of Bengaluru. City-based Sumadhura Group has leased three lakh sq.ft built-to-suit warehousing space to Zomato.