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Shares of food delivery company Zomato dropped 9 per cent to Rs 85.85 on the BSE in Friday’s intra-day trade after the company reported sequentially flat revenue growth at Rs 1,112 crore for October-December quarter (Q3FY22). On year-on-year (YoY) basis, the revenue growth was 78 per cent.
At 09:44 am, Zomato was trading 6 per cent lower at Rs 89.20, as compared to 1.2 per cent decline in the S&P BSE Sensex. The stock quoting close to its record low price of Rs 84.10 touched on January 25, 2021. It had hit a record high of Rs 169.10 on November 16, 2021. Zomato had raised Rs 9,375 crore through initial public offer (IPO) by issuing shares at price of Rs 76 per share.
In Q3FY22, the company’s revenue from operations grew by around 9 per cent quarter-on-quarter (QoQ), while the customer delivery charges de-grew by 22 per cent. This was driven by Rs 7.5 per order reduction in customer delivery charges in Q3FY22 as compared to Q2FY22, Zomato said.
Adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) loss reduced to Rs 270 crore in Q3FY22 as compared to Rs 310 crore in the previous quarter (Q2FY22) driven by rationalizing spends across various businesses and functions.
The company believes that the weak QoQ growth in gross order value (GOV) was primarily due to reduction in customer delivery charges, in addition to a soft impact of post-covid reopening (including some shift from delivery to dining out). Average order value (AOV; which includes customer delivery charges) shrunk by around 3 per cent QoQ, mostly on account of reduction in customer delivery charges.
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