Online food delivery platform Zomato is expected to report steady earnings for the quarter ended December with improvement in core earnings on the back of festive demand, World Cup, and an increased share of Gold the programme orders.

Net profit for the third quarter is likely to improve further to Rs 64.6 crore quarter-on-quarter (QoQ). The company had posted a loss of Rs 34 crore in the year-ago period.

Revenue for the same period is seen growing up to 61% year-on-year (YoY), according to an average estimate of four brokerages.

Analysts further see Zomato’s quick commerce arm to show strong growth during the December quarter. Investors will keep an eye on the outlook on growth, margin sustainability, and Blinkit. Investors will keep an eye on the outlook on growth, margin sustainability, and Blinkit.

In the second quarter, Zomato increased its profits sequentially to Rs 36 crore. Revenue from operations surged 71% YoY to Rs 2,848 crore.

Here’s what to expect from the Zomato’s Q3

Motilal Oswal

Overall, the sequential growth is expected to see some moderation from the peak. Food delivery should grow slower. EBITDA margin should see an uptick and is likely to turn positive at 0.6%. For Blinkit, traction is likely to continue in 3QFY24. Hyperpure should also continue its growth momentum.

Kotak Equities

We expect 3QFY24 revenue growth to come in at 61% YoY, driven by 45% YoY growth in food delivery revenues (29% YoY growth in GMV and 70 bps yoy take rate expansion), 89% YoY growth in Hyperpure revenues and 106% YoY growth in Blinkit revenues. Our food delivery GMV growth assumption implies 8% sequential growth.

Dolat Capital

Expect revenue growth of 5% QoQ, led by favorable festive tailwinds. Operational losses to lower by 263 bps due to improved cost efficiency measures. Expect PAT improvement aided by operational performance. Key commentary: 1) Improvement in contribution margin in food ordering biz, 2) Sustenance of order volumes, 3) Blinkit metrics and commentary.

JM Financial

In food delivery, we forecast sequential GOV growth of 7% (+28% YoY) on the back of an expansion in MTUs, ordering frequency, and AOVs. These metrics, in turn, are likely to be supported by the Cricket World Cup and the growing proportion of Gold programme orders.

The food delivery segment’s reported revenue growth will be relatively higher than GOV growth due to the likely improvement in the take rates on account of platform fees and improvement in the monetisation of restaurants.

At a consolidated level, we expect Zomato to turn reported EBITDA positive at Rs 29.8 crore vs a reported loss of Rs 47 crore in the second quarter.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)

(You can now subscribe to our ETMarkets WhatsApp channel)

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price


Source link