Chandigarh, January 21, 2025 (Punjab Khabarnama Bureau): Zomato Ltd shares plummeted on Tuesday, January 21, 2025 after the company posted weak results for the third quarter of the financial year 2024-25.
At 11:30am, the company’s shares fell 10.44% or by ₹25.15, trading at ₹215.80 on the Bombay Stock Exchange (BSE).
The intraday low till that point was ₹210.15.
Why did Zomato shares fall?
Zomato, which only recently got included among the 29 other BSE Sensex stocks, fell after it announced its third quarter financial results for 2024-25 on Monday, January 20, 2025.
The company’s net profit fell to ₹59 crore, which is down drastically by 57.24% compared to ₹79 crore during the same quarter of the previous year.
This is despite its consolidated revenue from operations rising 64.38% or by ₹2,117 crore to ₹5,405 crore, compared to ₹3,288 crore previously.
Its total expenses also increased by 63.55% or by ₹2,150 crore to ₹5,533 crore from ₹3,383 crore earlier.
This is because Zomato had invested heavily into its quick commerce arm Blinkit for expansion purposes as competitors like Zepto, Swiggy’s Instamart, Tata’s BigBasket, and Flipkart’s Minutes pose serious competition and challenge Blinkit’s status as the current quick commerce market leader.
Summary: Zomato’s share price plunged over 10% as its investment in Blinkit strained profit margins, raising concerns among investors about long-term financial stability.