Net Profit Expected to Hit ₹218 Crore: Zomato's Quarterly Report

Zomato is anticipated to deliver strong earnings growth in the fourth quarter of FY24. This growth is primarily driven by healthy performance in both food delivery and hyperpure business segments.

Revenue Growth Projections:

Average estimates suggest a 6% sequential consolidated revenue growth for Q4FY24, reaching ₹3,486.8 crore. This marks a significant increase from the revenue of ₹3,288 crore reported in the December quarter.

Year-on-year, Zomato's Q4 revenue is expected to surge by nearly 70%, from ₹2,056 crore in the corresponding quarter of the previous year.

Projected Net Profit Increase:

Zomato's net profit for Q4FY24 is expected to rise by 58% quarter-on-quarter, reaching ₹218 crore, compared to ₹138 crore in the previous quarter. Notably, in Q4FY23, the company had posted a net loss of ₹187.6 crore.

EBITDA Growth Estimates:

Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Q4FY24 are forecasted to spike by 176% quarter-on-quarter, reaching ₹141 crore from ₹51 crore.

Food Delivery Business Outlook:

JM Financial forecasts a 3% sequential decline in Gross Order Value (GOV) due to seasonality but anticipates a 25% year-on-year growth. Monthly Transacting Users (MTUs) are expected to show marginal quarter-on-quarter growth to 18.9 million.

Ordering frequency and Average Order Value (AOV) may decline by 2% each quarter-on-quarter. Take-rates are projected to expand to 20.4% in Q4FY24 compared to 20.1% in the previous quarter, contributing to an expansion in contribution margin.

Expectations for source and Hyperpure Business:

JM Financial anticipates strong sequential GOV growth of 15% in BlinkIt, driven by an 18% increase in order volumes. Contribution margin for source is expected to expand to 3.3% as a percentage of GOV.

ICICI Securities forecasts growth in Zomato's food delivery GOV by 29.2% year-on-year in Q4FY24. The brokerage firm expects Blinkit to grow by 19.8% quarter-on-quarter and Hyperpure's business to grow by 9.6% quarter-on-quarter in Q4FY24.

Analyst Recommendations and Stock Performance:

ICICI Securities maintains a 'Buy' rating on Zomato shares with a target price of ₹300 per share. Zomato's share price has witnessed significant growth, rising over 29% in the past three months and more than 61% year-to-date.

At 9:45 am, Zomato shares were trading slightly lower at ₹200.00 apiece on the BSE.