Zomato shares climb over 8% as firm narrows loss
Shares ofrallied over 8% in morning trade on Friday after the company announced that it has narrowed its consolidated net loss to Rs 250.8 crore in Q2 FY23.
The stock rose 8.05% to Rs 69.10 on the BSE.
On the NSE, it rallied 8.21% to Rs 69.20.
The 30-share BSE Sensex benchmark was trading 1,016.73 points higher at 61,630.43.
Online food delivery platform Zomato on Thursday said that its consolidated net loss narrowed to Rs 250.8 crore in the second quarter ended September 30.
The company's consolidated net loss stood at Rs 434.9 crore in the year-ago period.
Revenue from operations increased to Rs 1,661.3 crore during the July-September quarter against Rs 1,024.2 crore in the corresponding period of the previous financial year, it said in a regulatory filing.
Zomato has been narrowing losses consecutively over two quarters as compared to the losses incurred in FY2021-22. The company expects to eventually break even in the next two to four quarters.
"We have been on the look-out for new and potentially large growth ideas for the long-term growth of our business—e.g. Intercity Legends (intercity food delivery), and Zomato Instant (food delivery in 10-15 minutes); but these are innovations within the “food delivery” business, and are relatively low investment initiatives," Akshant Goyal, Chief Financial Officer, Zomato added.
Edited by Kanishk Singh