Company records fourth consecutive quarter profit of Rs 175 crore, revenue grows 73%


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Zomato reported a net profit of Rs 175 crore for the January-March (Q4) period, marking the food aggregator's fourth consecutive quarter in the green.

Revenue rose 73 per cent year-on-year to Rs 3,562 crore at a time when the broader e-commerce sector is grappling with pressure from higher inflation and lower demand.

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During the same quarter last year, Zomato had reported a net loss of Rs 188 crore and revenue of Rs 2,056 crore.

The food delivery company's share price is rising due to rising profitability in its core business and the rapid growth of its instant commerce arm, Blinkit.

The company's stock is trading at more than 100 times forward earnings, which is several times higher than global competitors including Uber, Deliveroo and Meituan.

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Goldman Sachs Group Inc. expects profit estimates to beat for Zomato's “instant commerce” business Blinkit, analyst Manish Adukiya wrote in a recent note. “Earlier investor conversations suggested skepticism about the profitability of this business model,” he said, adding that concerns should subside once more results are released.

According to Abhishek Banerjee, analyst at ICICI Securities Ltd, the rich valuation for Zomato seemed reasonable given the “significantly higher” projected revenues and profits for the company. The broker says the stock has basically moved in line with Doordarshan Inc. in the last six months amid improving sentiment on tech stocks across the globe.


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