 "Zomato likely to post robust Q2 nos with 7x increase in PAT, say analysts")
Online food delivery platform Zomato is slated to release its second quarter (Q2FY25) results on Tuesday, October 22, 2024. Ahead of the results, brokerages tracked by Business Standard have estimated Zomato's profit after tax (PAT) on an average to see a robust increase of 749 per cent year-on-year (Y-o-Y) to Rs 305.67 crore in the second quarter as compared to Rs 36 crore a year ago.
On a quarter-on-quarter (Q-o-Q) basis, the profit is estimated to grow 20.8 per cent from Rs 253 crore in the June quarter.
Zomato's revenue is expected to jump 69.2 per cent Y-o-Y on an average to Rs 4,821.4 crore in the September quarter in comparison with Rs 2,848 crore.
On a quarterly basis, the revenue is expected to increase 14.6 per cent from Rs 4,206 crore in the quarter ended June 30, 2024.
That apart, investors will monitor any change in guidance from Zomato/Blinkit and the ‘District’ scale-up strategy. Blinkit is a grocery delivery application owned by Zomato.
Here is what brokerages estimate for Zomato's Q2 results:
ICICI Securities: Analysts at ICICI Securities estimate Zomato’s food delivery gross order value (GOV) to grow by 6 per cent Q-o-Q and 23 per cent Y-o-Y while Blinkit’s GOV is estimated to grow by 20.1 per cent Q-o-Q and 114.1 per cent Y-o-Y.
Additionally, Hyperpure’s-- wholesale restaurant supply business of Zomato--adjusted revenue is estimated to grow by 20 per cent Q-o-Q/95.2 per cent Y-o-Y in Q2FY25E.
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Overall, adjusted revenue growth is expected to grow 13.1 per cent Q-o-Q and 57.7 per cent Y-o-Y.
Furthermore, the brokerage expects revenue for the second quarter to come in at Rs 5,111.1 crore as compared to Rs 2,848 a year ago which implies an increase of 79.4 per cent. On a quarterly basis, the revenue is expected to grow 21.5 per cent.
Analysts estimate an adjusted Ebitda of Rs 35 crore in Q2FY25 as compared to Rs 30 crore in Q1FY25 and Rs 4 crore in Q2FY24.
Kotak Institutional Equities: The brokerage expects Q2FY25 revenue to grow 63 per cent Y-o-Y, driven by 37 per cent Y-o-Y growth in food delivery revenues.
Additionally, 74 per cent Y-o-Y growth is expected from Hyperpure revenues, and 122 per cent Y-o-Y growth is estimated from Blinkit revenues.
Overall, Kotak analysts have pegged revenue for the second quarter at Rs 4,644 crore as compared to Rs 2,848 crore a year ago which translates to an increase of 63 per cent.
They also expect 18.2 per cent Y-o-Y growth in revenue, driven by 4.1 per cent Y-o-Y growth in paying suppliers base and 13.5 per cent Y-o-Y growth in average revenue per user (ARPU).
Overall, revenue for the second quarter is expected at Rs 4,644 crore as compared to Rs 260.6 crore a year ago.
A minor Ebitda loss for Blinkit is expected as the new store addition will offset the higher profitability of older stores.
Overall, Ebitda is expected to come in at Rs 238.9 crore as compared to a loss in Ebitda of Rs 47 crore Y-o-Y. Ebitda margin is pegged at 5.1 per cent Y-o-Y as compared to a loss on margin of 1.7 per cent.
Nuvama Institutional Equities: Nuvama analysts estimate revenue growth of 12 per cent Q-o-Q and 65.3 per cent Y-o-Y for consolidated business in Q2FY25.
They have pegged the revenue at Rs 4,709.1 crore for Q2 as compared to Rs 2,848 crore a year ago.
Zomato's adjusted revenue of the food delivery business is expected to grow by 36 per cent Y-o-Y on the back of volume growth. Meanwhile, Blinkit is forecasted to report 124 per cent Y-o-Y growth in revenue.
The consolidated Ebitda margin is likely to improve by 150 bps Q-o-Q led by food delivery.
The brokerage expects the Ebitda at Rs 267.3 crore as compared to a loss of Rs 47 crore a year ago.
The Ebitda margin is expected to come at 5.7 per cent as compared to a fall in margin at 1.7 per cent a year ago.