Zomato Q3 Results Review – Blinkit Losses Drag Performance; Food Delivery Slowdown Visible: Dolat Capital


BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Zomato Ltd. reported revenue growth of 17.3% QoQ (our estimate: 15%), at Rs 19 billion. Q3 included full-quarter consolidation of Blinkit. Growth beat however, was led by Hyperpure and others (ME delivery and advertising) segments, growing 26% & 54% respectively.

For food delivery, gross order value growth remained sluggish, while monthly transacting users declined 0.6% QoQ to 17.4 million, (implying high single digit decline in order growth), leading to adjusted revenue of Rs 15.6 billion, a decline of 1% QoQ.

Zomato’s Ebitda margin rose slightly to -18.8% (our estimate: -16.3%) from -18.7% in Q2. Miss is attributed to higher loss in Blinkit, while food delivery biz saw better economics, with adjusted Ebitda management of 0.3% on gross order value (achieved breakeven in Q2).

We believe that declining order/monthly transacting users metrics clearly suggest that a large part of consumer adoption is incentivised and thus slipped as quickly as discounts withdrew.

Click on the attachment to read the full report:


This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *