Shares of Zomato Ltd fell sharply on Monday's fag end trade after the company reported a 57.24 per cent drop, year-on-year (YoY), in its consolidated net profit for the December 2024 quarter (Q3 FY25). During the quarter under review, profit slipped to Rs 59 crore from Rs 138 crore in the year-ago period. However, revenue from operations surged 64.39 per cent to Rs 5,405 crore in Q3 FY25 as against Rs 3,288 crore in the corresponding period last fiscal.
Zomato said bottomline (adjusted EBITDA) grew 128 per cent YoY, however, on a QoQ basis, adjusted EBITDA fell 14 per cent due to investments in expedited new store openings and new customer acquisition on quick commerce business.
"Blinkit store count crossed the 1,000 mark, one quarter ahead of plan. Now aiming to get 2,000 stores by December 2025, one year ahead of earlier guidance of Dec 2026," it added.
"Muted 2 per cent QoQ (17% YoY) gross order value (GOV) growth in food delivery this quarter driven by broad-based demand slowdown. Sharp rise in adjusted EBITDA margins from 3.5 per cent in Q2 FY25 to 4.3 per cent Q3 FY25," Zomato further stated.
"GOV of our B2C businesses grew 57 per cent YoY (14 per cent QoQ) to Rs 20,206 crore in Q3 FY25. On a like-for-like basis (excluding the impact of the acquisition of Paytm's entertainment ticketing business) GOV growth was 52 per cent YoY (12 per cent QoQ). Food delivery GOV grew 17 per cent YoY (2 per cent QoQ). Quick commerce GOV grew 120 per cent YoY (27 per cent QoQ) and going-out GOV grew 191 per cent YoY (35 per cent QoQ)," said Zomato CFO Akshant Goyal.
"GOV of our B2C businesses grew 57 per cent YoY (14 per cent QoQ) to Rs 20,206 crore in Q3 FY25. On a like-for-like basis (excluding the impact of the acquisition of Paytm's entertainment ticketing business) GOV growth was 52 per cent YoY (12 per cent QoQ). Food delivery GOV grew 17 per cent YoY (2 per cent QoQ). Quick commerce GOV grew 120 per cent YoY (27 per cent QoQ) and going-out GOV grew 191 per cent YoY (35 per cent QoQ); like-for-like (excluding Paytm's entertainment ticketing business acquired in Aug 24) GOV grew 119 per cent YoY (15 per cent QoQ)," said Zomato CFO Akshant Goyal.
"Our B2B business Hyperpure's Revenue grew 95 per cent YoY (13 per cent QoQ). Consolidated Adjusted Revenue grew 58 per cent YoY (12 per cent QoQ) to Rs 5,746 crore, broadly in line with GOV growth," he added.
After the quarterly results were declared, Zomato's stock tanked 8.02 per cent to hit an intraday low of Rs 228.80. It eventually settled 3.14 per cent lower at Rs 240.95. At this price, the scrip has fallen 14.51 per cent in a month.
The counter saw high trading volume on BSE today as around 36.61 lakh shares changed hands. The figure was higher than the two-week average volume of 30.10 shares. Turnover on the stock came at Rs 89.93 crore, commanding a market capitalisation (m-cap) of Rs 2,32,525.20 crore.
"For long positions, let the stock first cross Rs 265 level. Otherwise, if it trades around Rs 225, then one can take a position with a stop loss of Rs 210. Preferred targets would be in the Rs 245-265 range," Brijesh Singh of Opulent Investment told Business Today.