Synopsis: Zomato is poised to unveil its fourth-quarter fiscal year 2024 results today, with expectations set for a robust performance. Forecasts suggest a significant increase in net profit and a notable uptick in revenue compared to the previous quarter. Analysts anticipate a rise in key operational metrics, including Earnings before Interest, Taxes, Depreciation, and Amortisation (EBITDA), driven by healthy performance in its food delivery and hyperpure segments. Let's delve into the projected financial figures and expert insights shaping Zomato's anticipated quarterly report.
Zomato, the leading online food delivery platform, is gearing up to announce its fourth-quarter fiscal year 2024 results, expected later today. Market analysts anticipate a stellar financial performance, driven by robust growth in its food delivery and hyperpure business segments.
Revenue Growth Projections:
Zomato is estimated to achieve a 6% sequential increase in consolidated revenue, reaching Rs3,486.8 crore for the quarter ending March 2024. This marks a substantial jump from the revenue recorded in the previous quarter, which stood at Rs3,288 crore. Year-on-year, the company's Q4 revenue is projected to surge nearly 70% from Rs2,056 crore in the corresponding quarter of the previous fiscal year.
Profitability Outlook:
The company is expected to witness a significant rise in net profit, with a projected 58% increase to Rs218 crore compared to the previous quarter's Rs138 crore. This indicates a notable turnaround from the net loss of Rs187.6 crore reported in the fourth quarter of fiscal year 2023.
Operational Performance:
At the operating level, Zomato is forecasted to experience a substantial spike in EBITDA, projected to surge by 176% to Rs141 crore from Rs51 crore in the previous quarter.
Segmental Analysis:
Analysts project a marginal decline in sequential Gross Order Value (GOV) for Zomato's Food Delivery business, attributed to seasonal factors. However, year-on-year growth is anticipated at 25%, supported by a weak base from the previous year. Projections also indicate growth in Monthly Transacting Users (MTUs) and an expansion in take-rates, contributing to an increase in contribution margin.
For Zomato's Blinkit segment, robust sequential GOV growth is expected, driven by increased order volumes. Similarly, Hyperpure's business (B2B) is forecasted to witness growth in the fourth quarter.
Market Sentiment:
The bullish sentiment surrounding Zomato is reflected in its share price performance, which has surged over 29% in the past three months and more than 61% year-to-date (YTD). Analysts maintain a positive outlook on Zomato shares, with ICICI Securities reiterating a 'Buy' rating and a target price of Rs300 per share based on a three-stage discounted cash flow (DCF) model.
As the anticipation builds for Zomato's Q4 results, investors await confirmation of the company's strong financial performance and its ability to sustain growth momentum in the dynamic online food delivery market.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies. We advise investors to check with certified experts before making any investment decisions.
Related Questions
1. What is the projected percentage increase in Zomato's net profit for the fourth quarter of FY24?
The projected percentage increase in Zomato's net profit for the fourth quarter of FY24 is 58%.
2. What is the estimated sequential growth in Zomato's consolidated revenue for the quarter ending March 2024?
The estimated sequential growth in Zomato's consolidated revenue for the quarter ending March 2024 is 6%.
3. What are the factors contributing to the projected increase in Zomato's Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) for the quarter ended March 2024?
The projected increase in Zomato's EBITDA for the quarter ended March 2024 is attributed to healthy performance in its food delivery and hyperpure business segments.
4. How does JM Financial anticipate the Gross Order Value (GOV) to behave for Zomato's Food Delivery business in the fourth quarter of FY24?
JM Financial forecasts a 3% sequential decline in Gross Order Value (GOV) for Zomato's Food Delivery business in the fourth quarter of FY24 due to seasonality.
5. According to ICICI Securities, what is the target price for Zomato shares and what methodology is used for this valuation?
ICICI Securities maintains a 'Buy' rating on Zomato shares with a target price of Rs300 per share, based on a three-stage discounted cash flow (DCF) model.
