Zomato shares jumped over 14% on August 4, 2023, hitting a 52-week high after the company posted its first-ever quarterly profit.
The food delivery company reported a profit of ₹30.6 crore ($4.1 million) for the quarter ended June 30, 2023, compared to a loss of ₹260.2 crore in the same quarter last year.
Zomato's revenue grew 75% year-on-year to ₹540.4 crore in the quarter. The company's gross order value (GOV) grew 67% year-on-year to ₹4,311.2 crore.
Zomato's CEO Deepinder Goyal said that the company's "strong" financial performance was driven by "continued growth in food delivery" and "a sharp increase in order frequency."
Goyal said that Zomato is "on track to achieve profitability" and that the company is "confident" in its ability to "continue to grow" in the future.
Zomato's stock price has been on a tear in recent months. The stock has more than doubled in value since the beginning of the year.
The company's strong financial performance and its optimistic outlook have helped to drive the stock's rally.
It will be interesting to see how Zomato's stock performs in the coming months. The company is facing increasing competition from other food delivery companies, such as Swiggy and Uber Eats. However, Zomato is well-positioned to compete in the market, and it has a strong track record of growth.
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