From Financial Modeling Prep: 2025-01-21 02:35:55

Zomato Ltd (NSE: ZOMT) shares dropped 10.9% after disappointing December quarter earnings, citing tough competition in quick commerce from Blinkit. Revenue rose slightly to 54.05 billion rupees, missing estimates. Blinkit faces tough competition from Swiggy’s Instamart, Zepto, Flipkart, Tata’s BigBasket, and Amazon, leading to margin pressures.

Investors reacted as Zomato’s shares fell 13%, underperforming Nifty 50. Net profit plunged 57% to 590 million rupees, missing Bloomberg’s 230 million rupees estimate. Revenue slightly exceeded estimates at 54.05 billion rupees. Blinkit’s aggressive discounts to maintain market share have squeezed profit margins.

Challenges in India’s quick commerce market include intense competition, margin pressures from aggressive pricing, and investor concerns over Zomato’s growth and profitability. Competitors like Swiggy’s Instamart pose significant threats, impacting Zomato’s market dominance and profitability.

To gain insights into Zomato’s financial trends, Financial Modeling Prep (FMP) offers resources like annual reports, key metrics (TTM), and ratios (TTM) for better analysis. Understanding Zomato’s financial performance over the years can provide valuable insights into revenue drivers and profitability in the quick commerce sector.

Investors will closely monitor Zomato’s strategy in addressing challenges, especially in balancing revenue growth with profitability. The ability of Blinkit to withstand competition while managing costs effectively will be crucial in determining Zomato’s financial health in the upcoming quarters.



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