On Friday, Zomato shares surged over 10% in the morning trade after the company affirmed its September quarter earnings. On 10th November, Zomato said its combined net loss for the quarter ending September 2022 pointed to Rs 250.8 crore against Rs 434.9 crore recorded in the same quarter last year. Its revenue from operations zoomed 62.20% to Rs 1,661.3 crore, the company in an exchange filing said.
The company said its ‘adjusted’ EBITDA loss augmented to Rs 192 crore in Q2FY23 compared to Rs 150 crore in the first quarter. The loss increased was the consolidation of quick commerce losses. At 09:32 am, Zomato quoted Rs 70.40, up Rs 6.45, or 10.09%, on the BSE. It touched an intraday high of Rs 72.25 and an intraday low of Rs 65.55. It traded with volumes of 8,903,451 shares, compared with the five-day average of 4,426,343 shares, an increase of 101.15%.
For Zomato, the Gross Order Value (GOV) growth was 3% QoQ and 23% YoY, driven by both order volumes and average order value growth. Growth in revenue per order resulted in higher adjusted revenue growth of 8% QoQ and 27% YoY.
Global research firm Jefferies progressed stock to a ‘buy’ call with a target of Rs 100 per share, an upside of 42% from the current market price. “Adjusted EBITDA is down to Rs 60 crore better than estimates. Blinkit growth was impressive and resulted in loss reduction; hyperpure has also grown strongly, per the media report.
Morgan Stanley has an ‘overweight’ rating on the stock targeting Rs 80 per share. The contribution margin in food delivery improved to 4.5% from 2.8% in Q1. Quick commerce showed good advancement in a reduction in losses QoQ.