Zomato's impressive Q1 results have significantly piqued investor interest, propelling the company's share price up by 8%. In a remarkable turnaround, the food delivery platform reported a consolidated net profit of Rs 2 crore for the quarter ending June 2023, a stark contrast to the Rs 186 crore loss incurred in the same period the previous year. This performance marked a significant improvement from the Rs 189 crore loss reported in the quarter ending March.
The impact of Zomato's first-ever quarterly profit was felt immediately as the stock surged by 2% during Thursday's trading session, with investor enthusiasm further boosting the shares when markets opened on Friday. An astounding 5.25 crore shares were traded in the opening session on the NSE, driving the stock price to reach its 52-week high of Rs 93.65.
Notably, the June quarter's robust earnings announcement spurred quick reactions from experts. Following the results, both Jefferies and Nuvama offered a 'Buy' recommendation, further energizing investor sentiment towards the stock.
The revenue from operations for the reporting quarter stood at Rs 2,416 crore, demonstrating an impressive growth of nearly 71% compared to the Rs 1,414 crore reported during the same period in the previous year. Zomato's successful financial performance has undoubtedly fueled confidence among investors and industry observers, solidifying its position as a key player in the competitive food delivery sector.
