Shares of Zomato Ltd. surged the most in three months on lower-than-expected second-quarter loss.
The Gurugram-based food aggregator’s consolidated net loss was Rs 250.8 crore in the quarter ended September, compared with Rs 185.7 crore in the preceding three months, on account of consolidation of quick commerce losses. That compares with the consensus estimated loss of Rs 252.75 crore forecasted by analysts tracked by Bloomberg.
On a year-on-year basis, its net losses narrowed from Rs 430 crore.
Zomato Q2 Key Highlights (Consolidated, QoQ)
Revenue up 17% at Rs 1,661.3 crore. Analysts had projected it at Rs 1,558.3 crore.
Operating losses are at Rs 418 crore, compared to an estimate of Rs 331.98 crore.
Its core business, food ordering and delivery, saw 5.7% growth in revenues to Rs 1,135.7 crore.
Average monthly transacting customers grew 4.4% to 17.5 million.
“With only 150 lakh monthly transacting users currently, Zomato has a long runway for customer acquisition and revenue growth, albeit this may come at the cost of near term profitability,” Jefferies said in a note.
Shares of Zomato gained 10% to trade at Rs 70.35 apiece as of 10:10 a.m., while the benchmark Nifty 50 gained 1.51% on the NSE. The total traded quantity is 10.8 times the 30-day average.
Of the 24 analysts tracking the company, 18 maintain a ‘buy’, four suggest a ‘hold’ and two recommend a ‘sell’, according to Bloomberg data. The average 12-month price target implies an upside of 19.4%
Here’s what analysts made of Zomato’s second quarter results: