ANI
03 Aug 2022, 11:57 GMT+10
New Delhi [India], August 3 (ANI): Shares of food aggregator and delivery company Zomato soared around 18-20 per cent on Tuesday after the company reported its net losses narrowing during the first quarter of 2022-23 (April-June).
During the quarter, the company's net losses were Rs 185.7 crore, as against Rs 343.1 crore same period last financial year.
Revenue from operations rose 67 per cent during the quarter to Rs 1,413.9 crore as against Rs 844.4 crore same quarter last year. Growth in revenue was driven by a rise in order values.
This morning, the shares, however, traded nearly 2 per cent lower.
July marked Zomato's completion of its first year as a new-age company listed on Indian stock exchanges.
Listed on July 23, 2021, the food aggregator's initial public offering was a success as it was subscribed 38.25 times. It made a stellar debut at a premium of 53 per cent. At present, the share price of Zomato is, however, around 65-70 per cent down from its peak of Rs 169.
Even though the company reported healthy gains on its listings on the stock exchanges in July last year, it could not capitalize on it further.
Zomato shares recently slumped sharply after the one-year mandatory lock-in period for promoters, shareholders, and others ended. The lock-in period refers to that period for which investments cannot be sold or redeemed.
"In this past year, Zomato surpassed many milestones - we served more than 50 million customers and extended our market presence in the face of aggressive competition. We also delivered our billionth order in the past year and while it took us 6 years to reach the first billion, we are confident that we will reach the next billion much sooner," founder Deepinder Goyal told shareholders while releasing the earnings earlier this week.
The founder, however, said the margins are getting negatively impacted due to higher fuel costs and wage inflation.
On being asked about the outlook for the July-September quarter in terms of growth and profitability, he said: "Directionally, as we mentioned last quarter, we are aiming for revenue growth along with reducing losses. We cannot share more at this stage for the next quarter."Further, on the status of the transaction with Blinkit, it is now awaiting approval from stock exchanges.
Zomato's Board of Directors recently approved a proposal to acquire the cash-strapped quick commerce company Blinkit for Rs 4,447 crore. Blinkit was earlier known as Grofers. It believes the acquisition will help increase Zomato's hyperlocal delivery fleet utilization and reduce the cost of delivery. (ANI)Get a daily dose of St Petersburg Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to St Petersburg Star.
More InformationLONDON, U.K.: An unrelenting heatwave sweeping across Europe has pushed early summer temperatures to historic highs, triggering deadly...
ISTANBUL/PARIS/BRUSSELS: As searing temperatures blanket much of Europe, wildfires are erupting and evacuation orders are being issued...
(Photo credit: Susan Mullane-Imagn Images) No. 23 seed Clara Tauson of Denmark moved into the fourth round at Wimbledon with a 7-6...
Investors have reportedly lost interest in the massive reconstruction endowment that last year was targeting raising $15 billion ...
* In recent years, BRICS has transformed into a major force fostering cooperation among Global South nations. This collaboration not...
The blocs new stockpile strategy reportedly aims to prepare for war, climate disasters, and growing hybrid and cyber threats The...
MADRID, Spain: Liverpool footballer Diogo Jota and his younger brother, André Silva, have died in a car accident in Spain. Spanish...
LONDON, U.K.: An unrelenting heatwave sweeping across Europe has pushed early summer temperatures to historic highs, triggering deadly...
President Donald Trump's plans to build a space-based Golden Dome missile defense shield have drawn immediate criticism from China,...
NEW YORK CITY, New York: Paramount has agreed to pay US$16 million to settle a lawsuit brought by U.S. President Donald Trump over...
LONDON, U.K.: British Prime Minister Keir Starmer won a vote in Parliament this week to move ahead with changes to the country's welfare...
WASHINGTON, D.C.: President Donald Trump will meet Israeli Prime Minister Benjamin Netanyahu at the White House on Monday. President...