Zomato shares make a sharp U-turn as investors await quarterly numbers

Zomato shares gave up initial gains in a volatile session on Monday, as investors awaited the food delivery company's financial results for the January-March period due later in the day.

The Zomato stock ended lower by Re 1.2 or 2.1 percent at Rs 56.9 apiece on BSE, in a U-turn after climbing up more than four percent to Rs 58.1 percent during the session.

Investors are keenly watching out for any progress towards profitability in the upcoming quarterly numbers.

Zomato shares have declined 28.5 percent in the past one month, and 61 percent in six months.

For the October-December period, the company had reported a net loss of Rs 63.2 crore — better than a net loss of Rs 352.6 crore for the corresponding period a year ago, according to a regulatory filing.

Zomato's net loss in the third quarter of the year ended March 2022 came despite a 82.5 percent year-on-year increase in its revenue at Rs 1,112 crore, amid a weak operational performance.

Its earnings before interest, taxes, depreciation and ammortisation (EBITDA) loss multiplied more than four times to Rs 488.8 crore for the  quarter ended December, from an EBITDA loss of Rs 110.7 crore for the year-ago period.