Zomato share price continued gaining for the fourth straight session as the company posted its results for the quarter ended March.
What Happened: The company’s consolidated revenue from operations stood at ₹2,056 crore, up 5% sequentially and 70% from the ₹1,211.8 crore revenue it booked in the same quarter last year. The company’s food delivery segment’s revenue stood at ₹1,172.5 crore, up 22% from the year-ago period and 1.89% sequentially. Revenue from Blinkit stood at ₹362.5 crore.
The company’s loss contracted significantly in the March quarter at ₹188.2 crore. The firm’s number beat street estimates of around ₹345-₹360 crore. The Zomato app saw its average monthly transacting users at 1.66 crore, marking a dip from the 1.74 crore number it reported in the December quarter.
Zomato Gold membership base scaled to 1.8 crore members during the quarter. The company said that the launch of Zomato Gold did not affect its overall profitability timeline.
Most brokerages remain bullish on the stock after the results. Morgan Stanley maintained its ‘overweight’ rating for the stock with a price target of ₹74. BofA Securities upgraded the stock’s rating from ‘neutral’ to ‘buy’ with a price target of ₹85. Goldman Sachs also maintained its ‘buy’ rating for the stock with a price target of ₹82.
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Price Action: Zomato’s share price was up 1.78% to trade at ₹65.65 as the markets opened on Monday.
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