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Why Zomato Share Price Falling Today

Zomato share price drops over 20% in early trade on Tuesday

Zomato share price dropped as much as 21.7% to Rs. 123.50 on the BSE in early trade today, after the online restaurant guide reported a whopping 80% fall in its net profit for the September quarter.

The stock, which opened at Rs. 137.10, touched a low of Rs. 123.50, down 21.7%, before quoting at Rs. 124 at 9:10 am.

The company had reported a net profit of Rs 19 crore for the quarter ended September 30, against Rs 51 crore in the year-ago period.

“The loss was primarily due to higher depreciation and amortisation expenses (in line with an increase in revenue) and an increase in employee benefit expenses,” Zomato said in a statement.