Zomato’s shares surged by 2.24%, reaching ₹262.10 as of October 23, 2024. The company’s market capitalization now stands at ₹2.31 lakh crore, following strong Q2 FY25 results and the announcement of plans to raise up to ₹8,500 crore through a qualified institutions placement (QIP). The capital raise, approved by the board on October 22, 2024, is aimed at fortifying the company’s balance sheet amid intensifying competition in the food delivery sector.
Key Financial Highlights (Q2 FY25):
- Revenue: ₹4,799 crore, a 68.5% year-on-year (YoY) increase from ₹2,848 crore in Q2 FY24 and a 14.1% quarter-on-quarter (QoQ) rise from ₹4,206 crore in Q1 FY25.
- Net Profit: ₹176 crore, up 388.9% YoY from ₹36 crore in Q2 FY24 but down 30.4% QoQ from ₹253 crore in Q1 FY25.
- EBITDA: Positive at ₹226 crore, a notable improvement from a loss of ₹47 crore in Q2 FY24.
- EBITDA Margin: 4.71%, reflecting improved operational efficiency.
Capital Strategy:
Zomato’s cash balance decreased by ₹1,726 crore, largely due to its ₹2,014 crore acquisition of Paytm’s entertainment ticketing business. While the company has started generating cash, it seeks to bolster its financial reserves to stay competitive in the rapidly expanding food delivery market.
As of 9:23 am, Zomato shares were trading 3.86% lower at ₹246.45 on the NSE, though the stock later rebounded to a 2.24% gain.
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