Zomato shares plunge over 7% on PAT fall, food business slowdown
Zomato shares on Monday plunged over 7% to end the session at Rs 230.70 on the NSE after the company reported weaker-than-estimated December quarter earnings while admitting to a slowdown in its food delivery business.
“Our 20%+ YoY GOV growth guidance for the food delivery business is more longer-term. There will be periods of higher and lower growth along the way. Currently, we are going through a broad-based slowdown in demand, which started during the second half of November. Notwithstanding the current slowdown, we are positive about a recovery soon and remain confident of the long-term outlook of 20%+ yearly GOV growth in the business given the strong fundamentals,” Zomato’s letter to the shareholders read.
The food delivery…
