InvestorQ : I have a query on what to do with the Zomato stock I got allotted in the IPO after the disappointing numbers?
Dawn Cherian made post

I have a query on what to do with the Zomato stock I got allotted in the IPO after the disappointing numbers?

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Mitali Bhutta answered.
3 months ago
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I am not surprised that you are disappointed by the results, because the losses did widen drastically. However, I don’t think any investor has bought Zomato believing that it would turn into profits immediately. The company is supposed to making losses for another couple of years, before it can really show traction on bottom line. Till then, it will remain a top line play and by that barometer, the company has done very well in the June quarter.

For the June 2021 quarter, Zomato saw its consolidated net loss widening to Rs.356 crore as compared to Rs.100 crore in the Jun-20 quarter. However, the exceptional circumstance was the limitation on the dine-out model due to COVID 2.0. The good news still is that the revenues from operations were 217% higher at Rs.844 crore. An interesting statistic, after 6 years, Zomato delivered 1 billion orders in all with 10% delivered in last 3 months alone.

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