Zomato Q4 results: Profit to rise QoQ; eyes on market share gain, cut in Blinkit losses

Zomato Ltd is seen reporting a double-digit growth in profit sequentially for the March quarter on a single-digit growth in sequential sales. All eyes would be on updates on the market share gain in food delivery business, its sequential order volume growth, expansion in customer delivery charges and any reduction in Blinkit losses.

ICICI Securities sees Zomato's profit at Rs 249 crore against a profit of Rs 138 crore in Q3 and a loss of Rs 204 crore in the year-ago quarter. It sees sales at Rs 3,513 crore, up 71 per cent against Rs 2,056 crore YoY.

The domestic brokerage expects Zomato’s food delivery gross order value (GOV) may rise 29.2 per cent YoY in Q4FY24. It sees food average order value (AOV) to remain flattish sequentially (up 2.7 per cent YoY). Blinkit is seen growing at 19.8 per cent QoQ and Hyperpure’s business (B2B) at 9.6 per cent.

"Overall, we estimate adjusted revenue growth of 6.9 per cent QoQ (70.9 per cent YoY) and overall adjusted Ebitda margin may improve to 6 per cent as a proportion of adjusted revenue (vs 3.5 per cent in Q3FY24). We estimate an adjusted Ebitda of Rs 230 crore in Q4FY24E (vs Rs 130 crore in Q3FY24)," it said.

Equirus Capital expects Zomato to report a profit of Rs 155.30 crore, up 13 per cent QoQ. It sees adjusted sales rising 55 per cent to Rs 3,728 crore. Ebitda margin is seen at 5 per cent against 3.5 per cent in the December quarter.

"While food delivery would post minus1 per cent Qoq GOV de-growth, Blinkit would post a strong 7 per cent Qoq GOV growth. We expect sequential adjusted Ebitda margin (as percentage of GOV) improvement in food delivery as well as Blinkit to be at 12bps/146bps respectively, compared to 41bps/201bps sequential improvement in 3QFY24," it said.

Kotak Institutional Equities expects Zomato to log an improvement in sequential contribution margin (CM), driven by better take rate and advertising income.

"We expect Zomato to report food delivery GMV of Rs 8,230 crore, up 25 per cent YoY, but down 3 per cent QoQ; Zomato guided for 20 per cent-plus YoY growth in food delivery GMV published in its 3QFY24 shareholder’s letter. 4Q typically witnesses a lull compared with 3Q owing to fewer festive occasions, year-end exams and more," Kotak said.