Zomato is estimated to deliver a strong earnings growth during the fourth quarter of FY24 led by healthy food delivery and hyperpure business. Zomato Q4 results are scheduled to be announced later today.
The online food delivery platform Zomato is expected to report 6% sequential consolidated revenue growth at ₹3,486.8 crore for the quarter ended March 2024, as per average estimates. The company’s revenue in the December quarter was ₹3,288 crore. Zomato’s Q4 revenue is expected to jump nearly 70% from ₹2,056 crore in the year-ago quarter.
The company’s net profit in Q4FY24 is likely to rise 58% to ₹218 crore from ₹138 crore, QoQ. Zomato had posted a net loss of ₹187.6 crore in Q4FY23.
At the operating level, Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) for the quarter ended March 2024 is estimated to spike 176% to ₹141 crore from ₹51 crore, QoQ.
Also Read: ‘Zomato Giveback’: Deepinder Goyal unveils India’s 1st crowd-supported weather infrastructure
In Food Delivery business, JM Financial forecasts sequential Gross Order Value (GOV) decline of 3% due to seasonality, but on a YoY basis growth will be 25% aided by a weak base of last year.
It sees marginal QoQ growth in MTUs to 18.9 million versus 18.8 million in Q3, whereas ordering frequency and AOV may come-off 2% QoQ each. Take-rates are likely to expand to 20.4% in Q4 versus 20.1% in Q3FY24, which should help contribution margin to expand to 7.4% (as % of GOV) versus 7.1% in 3Q.
“In BlinkIt, we expect strong sequential GOV growth of 15% led by robust increase of 18% in order volumes (that in turn should be driven by MTU increase from 5.4mn to 6.4mn). Take-rates can improve to 18.7% from 18.2% in 3Q, driven by ad income customer fees and product margins. We see contribution margin expanding to 3.3% (as % of GOV) versus 2.4% in 3Q,” JM Financial said.
Also Read: Zomato share price: Emkay Global raises target driven by Blinkit; sees 17% more upside
ICICI Securities believes Zomato’s food delivery GOV may grow 29.2% YoY in Q4FY24. It expects food AOV to remain flattish sequentially (2.7% YoY). The brokerage firm expects Blinkit to grow 19.8% QoQ and Hyperpure’s business (B2B) to grow 9.6% QoQ in Q4FY24.
It maintained a ‘Buy’ rating on Zomato shares with a 3 stage DCF-based target price of ₹300 per share.
Zomato share price has risen over 29% in the past three months and more than 61% year-to-date (YTD). Zomato shares have given multibagger returns of over 219% in the past one year.
At 9:45 am, Zomato shares were trading 0.70% lower at ₹200.00 apiece on the BSE.
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Published: 13 May 2024, 09:46 AM IST
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