Food tech giant Zomato share price continued its downward trajectory for the fifth session straight on Tuesday amid weak market sentiments, losing over 11.23 per cent during this period.
On Tuesday, the stock was trading 5 per cent lower, hitting an intraday low of ₹200 apiece on National Stock Exchange (NSE).
The Indian stock market opened in the red on March 11. BSE Sensex dropped to a low of 73,668 before recovering partially. As of 11:23 AM, the Sensex was down 188 points (0.25%) at 73,927.15. In contrast, the NSE Nifty 50 stood at 22,426.65, gaining 33 points (0.15%).
Zomato, on Monday, announced that its shareholders have approved a special resolution to rename the company as Eternal Ltd. The food-tech giant clarified in a stock exchange filing that the name change applies to the corporate entity and does not affect the brand or the app.
In addition to the name change, shareholders approved a resolution to amend the company’s Memorandum of Association (MoA) and Articles of Association (AoA) as needed.
The approval was given through a postal ballot, as stated in the company’s letters dated February 6 and February 7.
With shareholder approval, the resolution will result in amendments to the company’s core legal documents, including the MoA and AoA, to incorporate the new name, according to the stock exchange notification.
This represents a key milestone in the company’s strategic direction. The voting results were detailed in the scrutinizer’s report released on March 9.
Zomato Q3 FY25 results highlights
Food delivery platform Zomato reported a 57 per cent decline in consolidated net profit to ₹59 crore in the third quarter of the financial year 2024-25 (FY25), compared to ₹138 crore in the same period last year.
Sequentially, net profit dropped by 66.5 per cent from ₹176 crore recorded in Q2FY25.
The decline in profit has been attributed to increased expenses related to the expansion of its quick commerce platform, Blinkit. However, despite the profit dip, Zomato experienced significant revenue growth.
Zomato’s revenue jumped 64.9 per cent year-on-year to ₹5,405 crore in the October-December quarter, driven by strong demand and expansion initiatives. In Q3FY24, the company had recorded ₹3,288 crore in consolidated revenue from operations. On a quarterly basis, revenue grew by 12.6 per cent from ₹4,799 crore.
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