Zomato, the Deepinder Goyal-led delivery and quick-service giant, continued its red trail at the equity market on Tuesday, January 21.
Zomato's Profit Slips
The shares of the Gurugram-based company, which tanked by over 7 per cent on Monday, further dropped in value on Tuesday's trade.
This came to pass after the company published its results for the third quarter of the current fiscal year or Q3 of FY25.
In the results, the company that currently owns Zomato's main food delivery business, along with its quick-service subsidiary, Blinkit, reported a mammoth 66.47 per cent decline in its month-on-month profits in Q3.
Blinkit Records a Net Loss Of Rs 100 Crore
In the quarter that ran from October to December, the profit accrued after taxes shrunk to Rs 59 crore, which is a far cry from its previous quarter (Q2FY25) of Rs 176 crore.
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In addition, its quick-service subsidiary Blinkit had a Rs 103 crore net loss. Blinkit, Zomato's rapid commerce branch, recorded operational sales of Rs 1,399 crore, up 117.23 per cent from Rs 644 crore the year before.
In addition to that, Blinkit reported a 117.23 per cent increase in its operating revenue. The operating revenue rose to Rs 1,399 crore from Rs 644 crore the previous year.
Zomato Shares In Decline
When we take a closer look at the company's performance at the equity market on Tuesday, the shares of the company (Zomato, as Blinkit is not listed) dropped by over 6 per cent.
At the time of writing, the tide of red only intensified further.
After opening at Rs 223.00 per share (compared to yesterday's closing of Rs 239.75) the Zomato shares diminished even further. The overall decline took the value of Zomato shares to Rs 219.35.
This happened after an erosion of 8.51 per cent or Rs 20.40. Over the past 5 trading sessions, the overall decline in the equity value has come up to 8.39 per cent.
