Zomato Shares Plunge 4% as Q3 Profit Drops

New Delhi, Jan 20 (PTI) Shares of food tech unicorn Zomato on Monday declined nearly 4 per cent after the firm reported 57.2 per cent drop in consolidated net profit for the December quarter.

The stock dropped 3.14 per cent to settle at Rs 240.95 on the BSE. During the day, it tanked 8 per cent to Rs 228.80.

At the NSE, it went lower by 3.63 per cent to Rs 239.75.

Zomato on Monday reported 57.2 per cent drop in consolidated net profit for the December quarter to Rs 59 crore, with its margins facing pressure due to aggressive store expansion to meet orders from its quick-commerce platform Blinkit.

The company had earned a net profit of Rs 138 crore in the year-ago period.

Notably, Zomato witnessed a 2 per cent quarter-on-quarter and 17 per cent year-on-year growth in food delivery, driven by a broad-based "demand slowdown", it said in a letter to shareholders.

The company's consolidated revenue from operations stood at Rs 5,405 crore, as against Rs 3,288 crore in the December quarter of the previous financial year.

Total expenses also shot up to Rs 5,533 crore, from Rs 3,383 crore in the corresponding period of 2023-24.