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Zomato has raised its platform fee from Rs 7 to Rs 10 to ensure service continuity during the festive season. This increase follows a series of hikes since August 2023, aimed at improving profitability, with the company previously adjusting the fee multiple times throughout the year. An additional Re 1 hike could contribute Rs 65 crore to Zomato's annual revenue.
Zomato reported strong Q2 FY25 results, showcasing significant revenue growth and operating margin expansion. The company plans to launch a new app within four weeks, while its valuation at FY26 PE of 48.7x suggests potential upside despite current market performance.
The Nifty 50 has experienced a significant decline, dropping nearly 7% from its record high of 26,277, losing almost 2,000 points. Following a volatile Monday, the index faced a steep decline on Tuesday, with crucial support levels failing. Experts warn that if the Nifty falls below 24,000, it could plunge further to around 23,800. Global cues remain mixed, with stocks like Bajaj Finance and Zomato in focus.
Paytm's parent company, One 97 Communications, has received approval from the NPCI to onboard new UPI users, ending a nine-month embargo by the RBI. This development comes after the company reported a net profit of ₹930 crore in Q2FY25, largely due to a one-time gain from selling its movie ticketing business, although it would have otherwise faced a net loss of ₹415 crore. Despite a 5% rise in stock this year, Paytm has underperformed compared to Nifty's 12% returns.
Zomato is raising $1 billion to fuel its expansion into Quick Commerce, moving beyond its traditional grocery focus. This capital influx is essential for the company's growth across various markets and categories, highlighting the ongoing demand for investment in the sector.
Zomato's stock has surged 135% over the past year, significantly outperforming the Nifty's 28% rise. In Q2FY25, revenues reached Rs 4,800 crore, driven by strong growth in Blinkit, Hyperpure, and Going Out segments, while food delivery remained steady. Brokerages, including HSBC, maintain a 'buy' rating, citing the company's growth potential and recent fundraise as key factors for its competitive edge.
Zomato-owned Blinkit has seen its revenue share from the Delhi-NCR region decline from 47% to below 40% as it expands its presence in other Indian markets. CFO Akshant Goyal noted that the company is reducing reliance on Delhi-NCR while experiencing growth in other cities, reflecting the fragmented nature of the $5.5-billion quick commerce market.
Zomato plans to raise up to Rs 8,500 crore through a qualified institutional placement (QIP) of equity shares, as announced on October 22. The decision comes amid increased competitive intensity, despite the company maintaining a strong balance sheet and reporting consistent profits. The board will finalize details such as pricing in due course.
Zomato reported a remarkable 389% increase in net profit, rising from Rs 36 crore in Q2FY24 to Rs 176 crore in Q2FY25, driven by a 69% revenue growth from Rs 2,848 crore to Rs 4,799 crore. The company's operating revenues also saw a quarterly increase, reflecting steady business growth. Despite a 3.5% drop in share price to Rs 256.55, Zomato's shares have surged 107% year-to-date on the NSE, bolstered by a strong profit profile.
Paytm achieved its first net income of 9.3 billion rupees ($111 million) in the quarter ending September, driven by a 13.5 billion rupee gain from selling its events business. This marks a significant turnaround for the fintech company, which had been expected to report a loss of 6.3 billion rupees, despite a 34% decline in sales to 16.6 billion rupees.
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