Zomato Q4 2022 results: Online food delivery giant Zomato Ltd will report its consolidated financial results for the fourth quarter, as well as the performance for the FY22 financial year, on Monday.
The business, whose loss had narrowed significantly to Rs 63 crore for the third quarter ended December (Q3FY22) from a loss of Rs 352 crore in the prior year period, ended at Rs 58.05 on BSE Friday, up 4.88% from the previous close. The stock has lost 57.86% this calendar year, having settled at 137.75 rupees on the last day of CY21.
The sustained slump was widely attributed to a sell-off by REITs and mutual funds, such as reported earlier by Trade standard.
The company plans to deliver food to customers in 10 minutes, a model followed by fast-delivery grocery stores, its founder and CEO, Deepinder Goyal, said in a blog post. This, while ensuring the safety of the delivery person. It rolled out its 10-minute food delivery service, Zomato Instant, in Gurugram.
The business, which has not been profitable since its inception, has also made headlines for what restaurants call a ‘draconian’ food quality policy which they say can result in their disqualification from the platform. aggregation based on customer complaints.
They claim the new rule is one-sided and will hurt them.
Zomato’s share price has more than halved this year and is down 53%, from a level of Rs 137.75 reached on December 31, 2021. Institutional investors, led by portfolio investors Foreigners (REITs) and Mutual Funds (MF), collectively reduced their stake by 2 percentage points or 152 million shares in Zomato during the January-March quarter (Q4FY22).
Individually, the MFs sold 83 million shares or 1.1 percentage points of ownership in the company during the quarter. Their stake in Zomato fell to 2.82% from 3.88% at the end of the December quarter (Q3FY22).
Compared to its issue price of Rs 76, the meter has dropped by around 25%. So far, it has erased more than half of its value in 2022.
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