The popularity of online food delivery platform Zomato seems to be coming to an end. Recently the company presented its results for the quarter from October to December 2024, and it has seen huge losses. Due to this loss, questions are now being raised whether people have stopped ordering food from Zomato, due to which the company's profits have fallen.
How were the quarterly results?
Zomato's revenue increased by 64% in the third quarter, but its profit declined by 57% to ₹59 crore compared to last year. The company had made a profit of ₹138 crore in the same quarter last year. Additionally, Zomato's revenue has declined by 66.47% quarter-on-quarter, as the company had made a profit of ₹176 crore in the previous quarter (July-September 2024).
stock decline
Zomato's shares have fallen sharply after the company's quarterly results. Even today on Tuesday, a decline of more than 7% is being seen in the stock. Due to this decline, the market cap of the company has now reached Rs 1.96 lakh crore.
What is the reason for the loss?
Zomato's increasing expenses are being said to be the main reason for its loss. The company's expenses have increased faster than its income. Also, Zomato's quick commerce business Blinkit has suffered a huge loss of Rs 103 crore in the third quarter. Although Blinkit's revenue has increased by 117%, the company's position has worsened due to this loss.
Zomato's new target
Blinkit aims to open 2000 stores by the end of 2025. Blinkit has crossed the mark of 1000 stores in this quarter, but the company will have to control its expenses to avoid further losses.
conclusion
Zomato's financial position has weakened due to declining profits, increased expenses and loss of Blinkit. Despite this, the company is keeping a positive outlook towards its targets, but it needs to control expenses and improve its services.
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