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India's Zomato-parent Eternal reports 70% increase in quarterly revenue. Shares reach a 5-month high.

Eternal, an Indian online delivery company, posted a 70% increase in its first quarter adjusted revenue. This was largely due to a surge of orders for Blinkit, the quick commerce division. Shares of Eternal rose 7.5%.

In India, the quick-commerce sector has become fiercely competitive, despite its rapid growth. Players such as Eternal Swiggy, and Zepto, a start-up, are battling to gain market share.

Blinkit is widely regarded as the leader in this segment, as it delivers anything from groceries to electronic goods within 10 minutes. This is despite competitors such as Walmart-owned Flipkart, Tata-backed BigBasket and Amazon, who have deep pockets, increasing their presence.

Eternal’s revenue from operating activities increased to 71.67 trillion rupees (from 42.06 trillion rupees) in the first quarter, compared with 42.06 trillion rupees one year earlier.

After the results, its stock rose as high as 7.5% at 277 rupees, their highest since February 3, before closing with a 5.64% increase.

The company's net profit fell by 90% to 250 million rupees (2.90 million dollars) due to higher costs at Blinkit.

Quick commerce players are offering steeper discounts, free or subsidised deliveries and expanding their "dark store" network to compete with the competition.

Eternal's total expenses increased by nearly 79%, to 74.33 trillion rupees.

(source: Reuters)