Zomato delivers good earnings, Morgan says order more stock

Zomato, the food delivery platform, has reported a 75 percent year-on-year jump in revenues for the March quarter of the financial year 2022. However, its net loss widened to Rs 360 crore from Rs 134 crore in the corresponding quarter previous year.

Consolidated revenue from operations during the quarter under review stood at Rs 1,211.8 crore, as against Rs 692.4 crore in the year-ago period.

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Total expenses during the fourth quarter rose to Rs 1,701.7 crore as against Rs 885 crore earlier, the company said.

Gross Order Value -- the total value of orders -- grew by 6 percent quarter-on-quarter and 77 percent year-on-year to a record high of Rs 5,850 crore in Q4FY22. This was driven by healthy growth in order volumes while the average order value remained stable.

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Morgan Stanley maintained an 'overweight' rating on Zomato shares with a target of Rs 135 as against its Monday closing near Rs 56 a scrip. It noted that the company is moving in the right direction, but needs consistent execution to meet the high expectations.