Zomato Q4 results: what to look at in food-delivery firm's numbers tomorrow

Zomato loss had narrowed substantially to Rs 63 crore for the third quarter ended December (Q3FY22) from a loss of Rs 352 crore in the year-ago period

Zomato Q4 results 2022: Online food delivery giant Zomato Ltd will declare its consolidated financial results for the fourth quarter on Monday, along with the performance for the FY22 fiscal year.

The firm, whose loss had narrowed substantially to Rs 63 crore for the third quarter ended December (Q3FY22) from a loss of Rs 352 crore in the year-ago period, ended at Rs 58.05 on the BSE on Friday, up 4.88 per cent from the previous close.  The stock has shed a staggering 57.86 per cent this calendar year, having settled at Rs 137.75 on the last day of CY21.

The sustained meltdown has largely been attributed to a sell off by FPIs and mutual funds, as reported earlier by Business Standard.

The company plans to deliver food to its customers in 10 minutes, a model being followed by the quick delivery grocery companies, its founder and CEO, Deepinder Goyal, said in a blog post. This, while ensuring the delivery partner's safety. It has rolled out its10-minute food delivery service, Zomato Instant, in Gurugram.

The company, which hasn't been profitable since inception, has also been in the news for what restaurants call a 'draconian' food quality policy that they say can lead to their dis qualification on the aggregator platform based on customer complaints. They claim the new rule is one-sided and will hurt them.

The stock price of Zomato has more-than-halved this year, and is down 53 per cent, from a level of Rs 137.75 touched on December 31, 2021. Institutional investors, led by foreign portfolio investors (FPIs) and mutual funds (MFs), have collectively reduced stake by 2 percentage points or 152 million equity shares in Zomato in the January-March quarter (Q4FY22).

Individually, MFs have sold 83 million equity shares or 1.1 percentage point stake in the company during the quarter. Their holding in Zomato decreased to 2.82 per cent from 3.88 per cent at the end of December quarter (Q3FY22).

Compared to its issue price of Rs 76, the counter has tanked about 25 per cent. It has wiped off over half its value in the year 2022 so far.