Wed Oct 23 12:58:39 UTC 2024: ### Zomato Q2 Results Summary:

– **Net Profit**: Zomato reported a **389% year-on-year increase** in consolidated net profit for Q2FY25, reaching **₹176 crore**, up from **₹36 crore** in Q2FY24. However, there was a **30.43% decrease** from the previous quarter’s profit of **₹253 crore**.

– **Revenue**: The company’s revenue from operations for the July-September quarter was **₹4,799 crore**, a **68.5% increase** from **₹2,848 crore** year-on-year.

– **Total Income**: Consolidated total income rose **64%** to **₹5,020 crore**, compared to **₹3,060 crore** in Q2FY24.

– **Adjusted EBITDA**: Increased significantly to **₹331 crore** from **₹41 crore** year-on-year, indicating improved food delivery margins and stabilizing the quick commerce segment.

– **Growth in B2C Business**: There was a **55% year-on-year growth** in Gross Order Value (GOV) to **₹17,670 crore**, with a **14% quarter-on-quarter improvement**. Excluding the Paytm acquisition, YoY growth was **53%** and QoQ growth was **13%**.

– **Blinkit Performance**: Zomato’s quick commerce business, Blinkit, reported a **129% YoY revenue growth**, totaling **₹1,156 crore**, with a GOV increase of **122%** to **₹6,132 crore**. However, it still faced a negative adjusted EBITDA of **-₹8 crore**.

– **Cash Balance**: The cash balance decreased by **₹1,726 crore** due to a payment for the Paytm acquisition. Zomato plans to raise **₹8,500 crore** through a qualified institutional placement to bolster finances in a competitive environment.

– **Future Plans**: CEO Deepinder Goya announced the launch of the new District app within four weeks, focusing on smooth migration from Zomato and Paytm platforms.

– **Stock Performance**: Following the earnings announcement, Zomato’s share price fell **3.58%** to **₹256.20**. Analysts predict continued weakness unless prices recover above **₹270**, with the next support level at **₹240**.

### Key Takeaway:
Zomato’s Q2 results demonstrate significant year-on-year growth in profit and revenue, although the sequential decline in profit raises concerns. The company is positioned to strengthen its financial stability following its recent acquisition and plans for a new platform launch.

Read More