Zomato Ltd's Q2 financial results show impressive growth, but reliance on non-business income raises concerns.

Zomato Ltd, a largecap IT software company, has recently declared its financial results for the quarter ended September 2024. The company has received a 'Hold' call from MarketsMOJO, a leading financial analysis platform.

According to the financials, Zomato Ltd has shown outstanding performance in the quarter, with a significant growth in its Profit After Tax (PAT) of Rs 429.00 crore, which is a 1,028.95% increase from the same period last year. The company's PAT trend is also very positive. Additionally, the company's Profit Before Tax less Other Income (PBT) has grown by 117.9% over the average PBT of the previous four quarters, indicating a strong near-term trend.

Zomato Ltd has also seen a steady growth in its Net Sales, with the highest quarterly sales of Rs 4,799.00 crore and a positive sales trend in the last five quarters. The company's Operating Profit (PBDIT) has also shown a consistent growth in the last five quarters, with the highest quarterly profit of Rs 226.00 crore. This has resulted in an improvement in the company's Operating Profit Margin, which is currently at 4.71%.

The company's efficiency has also improved, as seen in the growth of its Profit Before Tax less Other Income (PBT) in the last five quarters. Zomato Ltd has also surpassed its previous 12-month PAT in just half a year, indicating a strong financial performance.

On the downside, the company's Non-Operating Income is 93.25% of its PBT, which suggests a high reliance on non-business activities. The company's Cash and Cash Equivalents have also decreased in the last six half-yearly periods, indicating a deteriorating short-term liquidity.

Overall, Zomato Ltd has shown a strong financial performance in the quarter ended September 2024, with positive trends in key financial indicators. However, the company's high reliance on non-business income and decreasing liquidity should be monitored closely.