Online food delivery platform Zomato delivered a sweet surprise in its Q3 FY24 results, turning a net profit of ₹138 crore, exceeding analyst expectations and marking a significant turnaround from a ₹347 crore loss in the same period last year.
Zomato's strong performance can be attributed to several factors. Let’s have a look at some of them.
While the profit turnaround is a positive development, the margin remains narrow, and profitability across the entire business is still a concern. The quick commerce segment, despite its rapid growth, continues to operate at a loss as Zomato invests heavily in marketing and expansion.
Zomato faces several challenges in its pursuit of sustainable profitability. Here are some of them.
As always, thorough research and evaluation of detailed financial statements are crucial before making any investment decisions. Consulting with qualified financial advisors remains essential for obtaining personalised guidance based on individual circumstances and risk tolerance.
This blog provides a factual overview based on publicly available information and does not constitute financial advice. Conduct your own research and consult with qualified professionals before making any investment decisions.