Zomato is poised to unveil robust earnings growth in the fourth quarter of FY24, primarily driven by its healthy food delivery and hyperpure business segments. The company’s Q4 results are slated to be disclosed later today.
Analysts anticipate a 6% sequential increase in consolidated revenue for the quarter ended March 2024, reaching ₹3,486.8 crore, compared to ₹3,288 crore in the preceding quarter. Moreover, Zomato’s Q4 revenue is expected to surge by nearly 70% from ₹2,056 crore in the corresponding period last year.
Profitability is also projected to see significant improvement, with net profit likely to rise by 58% to ₹218 crore from ₹138 crore on a quarter-on-quarter basis. This marks a substantial turnaround from the net loss of ₹187.6 crore reported in Q4FY23.
At the operational level, Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) are estimated to soar by 176% to ₹141 crore from ₹51 crore in the previous quarter.
In terms of business segments, JM Financial predicts a slight decline in sequential Gross Order Value (GOV) in the Food Delivery segment due to seasonality but anticipates a year-on-year growth of 25%. The BlinkIt segment is expected to witness robust sequential growth, driven by an increase in order volumes and improved take-rates.
ICICI Securities forecasts strong growth in Zomato’s food delivery and BlinkIt segments for Q4FY24 and maintains a ‘Buy’ rating on the stock with a target price of ₹300 per share.
Despite the recent fluctuations, Zomato shares have delivered impressive returns, rising over 29% in the past three months and more than 61% year-to-date. As of now, Zomato shares were trading at ₹200.00 apiece on the BSE.
Disclaimer: Please note that the views and recommendations provided here are based on individual analysts’ assessments and do not represent those of LegalParivar. Investors are advised to seek advice from certified experts before making investment decisions.
