Indian online delivery firm Eternal surpassed quarterly profit estimates on Tuesday, aided by continued expansion of its quick–commerce business and steady growth of its core food delivery unit.
Blinkit, which delivers goods ranging from groceries to electronics within minutes, remains a key growth driver for the company as it continues to expand its presence and boost unit economics.
India’s fast-growing quick–commerce sector also has players such as Swiggy’s Instamart and Zepto. Conglomerates such as Reliance and global players Amazon and Walmart-backed Flipkart are also vying for a share of the growing market.
Eternal, which also operates food delivery business Zomato, posted a consolidated net profit of 1.74 billion rupees ($18.40 million) for the quarter ended March, above analysts’ estimates of 1.21 billion rupees, per data compiled by LSEG.
Shares of the company came off lows after the results to close down 0.95% in Mumbai.
Eternal’s revenue from operations rose almost three-fold year-on-year to 172.92 billion rupees. The company added 216 Blinkit stores in the quarter, taking the total to 2,243.
($1 = 94.5450 Indian rupees)
Reuters
