India's Zomato surges past Q1 profit estimates as Blinkit serves growth
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
India's Zomato reported a bigger-than-expected increase in quarterly profit on Thursday, boosted by strong demand for its food and grocery delivery services.
The company's consolidated net profit rose to 2.53 billion rupees ($30.22 million) in the April-June quarter from 20 million rupees a year earlier.
Analysts, on average, had expected a profit of 2.15 billion rupees, according to LSEG data.
Quick commerce companies such as Zomato's Blinkit, the Tata group-owned BigBasket and IPO-bound Swiggy's Instamart are seeing steady demand for home deliveries for a wide variety of products in urban areas.
The intense heat during the summer, which extended into June, also boosted demand for home deliveries, aiding both Zomato's eponymous food delivery business and Blinkit orders.
Zomato's revenue surged 74% to 42.06 billion rupees in the quarter, beating analysts' estimates of 39.28 billion rupees, per LSEG data.
The company's stock rose 2.5% after the results, taking year-to-date gains to about 87%.
($1 = 83.7080 Indian rupees)
