Zomato preview: Experts expect Q1 loss to narrow; revenue may rise 59% YoY

Zomato Q1 preview: Analysts expect the Gurgaon-based firm's net loss to contract to Rs 315 crore in Q1FY23 from Rs 360.7 crore in the year-ago period.

Zomato Q1FY23 preview: Online food delivery giant Zomato is expected to clock revenue growth up to 59 per cent year-on-year (YoY) to Rs 1,342 crore in June quarter results (Q1FY23), on the back of higher orders and take rates. The food delivery platform is slated to report their June quarter results on Monday, August 1.

Analysts expect the Gurgaon-based firm’s net loss to contract to Rs 315 crore in Q1FY23 from Rs 360.7 crore in the year-ago period. The company’s Ebitda loss is expected to widen 6.9 per cent YoY to Rs 402 crore from Rs 376.5 crore in Q1FY22. However, sequentially, steady orders and higher revenue mix is expected to drive reduction in Ebitda loss from Rs 449.7 crore in Q4FY22.

So far in this calendar year, shares of Zomato have tumbled 66 per cent. In comparison, Nifty50 and the S&P BSE Sensex have bled 1 per cent each during the same period.

Factors to watch out

Investors will closely monitor the management’s commentary on Zomato’s Blinkit acquisition and their granularity of integration, growth in gross order value (GOV), margin contribution trajectory, fixed costs roadmap, and commentary on competitive intensity

Here’s a breakdown of what top brokerage houses estimate from Zomato’s Q1FY23 numbers:

JPMorgan: The brokerage firm forecasts the food delivery platform to clock 59 per cent YoY revenue growth to Rs 1,342 crore in Q1FY23. Ebitda loss, too, is estimated to widen 28 per cent YoY and 7.1 per cent QoQ to Rs 481 crore.

Net loss, however, is expected to contract to Rs 319 crore.

Kotak Institutional Research: The brokerage firm anticipates net sales to grow 58.1 per cent YoY to Rs 1,335 crore in Q1FY23 from Rs 844.4 crore in the year-ago period. On a quarter-on-quarter (QoQ) basis, the food delivery platform is expected to clock a 10.2 per cent rise from Rs 1,211 crore in Q4FY22, on account of higher food delivery orders, steady take rates, and recovery in advertising business.

Net loss, meanwhile, is expected to contract to Rs 315 crore in Q1FY23.

Edelweiss Securities: Analysts estimate 8.5 per cent QoQ and 56 per cent YoY revenue growth to Rs 1,211 crore on the back of 6.2 per cent QoQ growth in GOV. On the back of lower variable costs, flat average order value, and addition in monthly transacting users, the brokerage firm expects contribution margin as part of GOV to expand to 2.2 per cent in Q1FY23 from 1.7 per cent in Q4FY22. Ebitda loss is expected to widen 7 per cent YoY to Rs 410 crore in Q1FY23 from Rs 376 crore.

B&K Securities: Analysts foresee growth in revenues by 57.1 per cent YoY to Rs 1,326 crore. With the rise in delivery fees, the brokerage firm expects adjusted PAT to remain at Rs 294 crore. Ebitda margin, meanwhile, is expected to dilute to -38.4 per cent in Q1FY23 from -44.6 per cent in the year ago period.