- Tuesday, October 22, 2024
Zomato board also approved the raising of £779.82 million through qualified institutional placement of equity shares
By: Shajil Kumar
ONLINE food delivery firm Zomato Ltd on Tuesday reported a consolidated net profit of ₹1.76 billion (£16.15 million) in the second quarter ended on September 30, 2024.
The board of the company, which had posted a consolidated net profit of ₹360m (£3.30m) in the same quarter last fiscal, also approved the raising of ₹85bn (£779.82m) through qualified institutional placement of equity shares, Zomato Ltd said in a regulatory filing.
Zomato’s consolidated revenue from operations stood at ₹47.99bn (£440.28m). It was at ₹28.48bn (£261.28m) in the year-ago period, it added.
Total expenses were at ₹47.83bn (£438.81m) in the quarter under review against ₹30.39bn (£278.81m)in the corresponding period a year ago, it said.
The company said its results for the quarter and half year ended September 30, 2024, are not comparable with other quarters and half-year results due to the acquisition of Orbgen Technologies Private Ltd (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL) holding the ‘movies ticketing’ business and events business respectively from One 97 Communications Ltd (Paytm) in August this year.
All-in-one District app
In a letter to shareholders, Founder and CEO Deepinder Goyal shared that the “District” app, a new platform to consolidate going-out services such as dining, movies, sports ticketing, live performances, shopping, and staycations, “should be live in the next four weeks”.
“At this point, we are focused on making sure we do a good job at migrating the business from Zomato and Paytm platforms to the new District app,” Goyal stated.
With regard to the proposed fund-raise via QIP, he further clarified that the food delivery business margins continue to remain steady and there is also no plan for any minority investments or acquisition.
The fundraise is meant to strengthen our balance sheet at this point, Goyal said.
Notably, Zomato’s proposed fund-raise comes at a time when rival Swiggy, in the food delivery duopoly space, is gearing up to go public with its initial share sale as the quick commerce battle intensifies in India. (PTI)
