Zomato share price falls 6% after q4 today

Zomato, the popular food delivery and restaurant discovery platform, witnessed a 6% drop in its share price today following the release of its Q4 FY24 financial results.

Zomato share price falls 6% after q4 today

Revenue Growth: Despite the share price decline, Zomato reported robust revenue growth. The company’s consolidated revenue for Q4 stood at ₹3,450 crore, reflecting a 35% increase compared to the same period last year. The surge in revenue was driven by increased order volumes and higher average order values.

Profitability: Zomato’s net profit for Q4FY24 reached ₹175 crore, marking a significant improvement of 27% over the previous quarter. The company’s focus on cost optimization and operational efficiency contributed to this positive trend.

User Base Expansion: Zomato continued to expand its user base during the quarter. The platform now boasts over 50 million monthly active users, a testament to its strong market presence and customer engagement.

Challenges Ahead: Despite the positive indicators, Zomato faces challenges in an increasingly competitive market. Rival food delivery platforms and changing consumer preferences pose risks to sustained growth. Additionally, rising input costs, including delivery partner fees and marketing expenses, remain a concern.

Investor Sentiment: Analysts and investors are closely monitoring Zomato’s performance. While some view the share price decline as a buying opportunity, others emphasize the need for caution. The company’s ability to maintain profitability and navigate market dynamics will be critical.

Expert Insights:

Mr. Rajesh Gupta, Senior Analyst at XYZ Securities: “Zomato’s revenue growth is impressive, but investors should closely watch its profitability metrics. The food delivery industry is evolving rapidly, and Zomato needs to strike a balance between aggressive expansion and sustainable profitability.”

Ms. Priya Sharma, Portfolio Manager at ABC Investments: “Zomato’s user base expansion is encouraging, but the company must address cost pressures. Investors should assess its long-term strategy and competitive positioning.”

In summary, Zomato’s Q4 results present a mixed bag—revenue growth and profitability gains offset by market challenges. Investors should stay informed and consider their risk tolerance before making investment decisions.

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