Zomato Shares Surge 11% as Company Achieves Profit Ahead of Schedule

• ByStartupStory     |    August 4, 2023

Shares of Zomato, the renowned food delivery company, experienced an impressive surge of 11% on Friday following the announcement of its inaugural profit for the June quarter of FY24. The share price reached Rs 96 at the time of publishing this report, simultaneously marking a one-year high and reflecting heightened investor optimism. The company, under the leadership of Deepinder Goyal, has achieved profitability much earlier than its initial guidance, which aimed at reaching this significant milestone by Q2 FY24.

Zomato’s operational revenue witnessed a remarkable 71% increase, soaring to Rs 2,416 crore from the previous year’s Rs 1,414 crore. This substantial growth can be attributed to the exceptional performance of Hyperpure, the company’s restaurant supplies vertical, which played a pivotal role in driving the surge in revenue.

“Realistically speaking, we were expecting to hit this milestone in the September quarter (Q2 FY24), and we were being conservative in our earlier guidance. However, some critical parts of the team across our businesses out-executed our expectations/plans, and some of our initiatives delivered better outcomes than we had expected,” stated Akshant Goyal, Chief Financial Officer of Zomato, in a shareholder’s statement.

The positive financial results and accelerated profitability have instilled a strong sense of confidence and enthusiasm among both investors and industry experts. Zomato’s exceptional performance in achieving profitability ahead of schedule underscores the company’s robust growth strategy and its ability to effectively navigate dynamic market conditions.

As Zomato continues to demonstrate its resilience and agility, the company’s accomplishment serves as a testament to its commitment to innovation, strategic execution, and dedication to delivering value to its customers and shareholders.

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