Zomato's Profits Plummet Amid Rising Expenses

Zomato, the food delivery giant, reported a sharp 57.2% decline in net profit to Rs 59 crore for Q3 2023. Despite a rise in revenue to Rs 5,405 crore, the company's expenses increased significantly, impacting profitability. Zomato's shares fell 3.14% to Rs 240.95 on the BSE.

Zomato, a leading player in the food delivery sector, reported a significant 57.2% drop in consolidated net profit to Rs 59 crore for the third quarter ending December 2023.

In the same quarter last year, the company had recorded a net profit of Rs 138 crore. Despite experiencing growth in consolidated revenue, which stood at Rs 5,405 crore compared to the Rs 3,288 crore achieved in the corresponding quarter of the previous financial year, the rise in total expenses to Rs 5,533 crore from Rs 3,383 crore negatively impacted profitability.

Zomato operates through several revenue channels including food ordering and delivery, Hyperpure supplies, and quick commerce. The company's share value dropped by 3.14% to close at Rs 240.95 on the BSE market.

(With inputs from agencies.)