Zomato's Profit Plummets Amid Rising Expenses

Food delivery giant Zomato reported a 57.2% decline in consolidated net profit to Rs 59 crore for Q3. While revenue rose to Rs 5,405 crore, expenses surged to Rs 5,533 crore, impacting profitability. Zomato's shares fell by 7.26%, reflecting investor concerns.

Food delivery giant Zomato, alongside its subsidiary Blinkit, has announced a significant 57.2% drop in consolidated net profit for the third quarter, ending December, landing at Rs 59 crore. This marks a considerable dip from the Rs 138 crore net profit reported during the same period last year.

Despite a significant increase in consolidated revenue from operations, which grew to Rs 5,405 crore from Rs 3,288 crore within the same timeframe, the rise in overall costs eroded profit margins. The company's total expenditure surged to Rs 5,533 crore compared to Rs 3,383 crore in the previous year's corresponding quarter.

Zomato's business spectrum includes its diversified revenue streams from food ordering and delivery in India, Hyperpure supplies, Quick commerce, and other miscellaneous segments. The company's stock on the BSE closed at Rs 230.70 per share, down 7.26%, signaling market apprehensions around its financial health.

(With inputs from agencies.)