Zomato Reports Strong Sales Growth Amid Profitability Challenges in Q3 FY24-25

Zomato Ltd has released its financial results for the third quarter of FY24-25, highlighting notable trends in its performance. The company's net sales reached Rs 5,405.00 crore, showcasing a significant growth compared to the average net sales of Rs 3,963.75 crore over the previous four quarters. This upward trajectory in sales has been evident, with consistent quarterly increases observed over the last five quarters.
On the other hand, Zomato encountered challenges regarding profitability. The profit before tax (PBT) recorded a figure of Rs -128.00 crore, reflecting a shift from the average PBT of Rs -37.50 crore in the prior four quarters. Similarly, the profit after tax (PAT) decreased to Rs 59.00 crore, which is lower than the average PAT of Rs 185.50 crore. The earnings per share (EPS) also fell to Rs 0.07, indicating a decline in profitability.

Furthermore, Zomato's cash and cash equivalents were reported at Rs 506.00 crore, marking the lowest level in the last six half-yearly periods, which suggests a change in short-term liquidity. The company's debtor turnover ratio also showed a decline, pointing to a slower pace in settling debts.

In light of these developments, there have been evaluation changes regarding Zomato's financial standing.

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