BENGALURU/CHENNAI (Reuters) – Indian food delivery platform Zomato reported a quarterly profit that beat market expectations on Thursday, aided by increased demand during the men’s Cricket World Cup and the festive period.
The company’s shares rose more than 3% after the results.
It reported a consolidated net profit of 1.38 billion rupees ($16.6 million) for the third quarter ended Dec. 31, beating analysts’ estimate of 909.8 million rupees, as per LSEG data.
It had reported a net loss of 3.47 billion rupees a year earlier.
Indian consumers ordered more food from restaurants during the men’s Cricket World Cup, which took place between Oct.5 and Nov. 19. This, coupled with the festive season, when Zomato and its Softbank-backed rival Swiggy bring in a lion’s share of their yearly sales, helped boost its topline.
Revenue from its mainstay food delivery business grew 48% for the quarter, while revenue from its quick commerce division more than doubled.
This resulted in the total revenue jumping 69% to 32.88 billion rupees.
($1 = 82.9712 Indian rupees)
(Reporting by Ashna Teresa Britto in Bengaluru and Praveen Paramasivam in Chennai; Editing by Sonia Cheema)
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