The consolidated net profit of Zomato in the first quarter of FY24 was recorded at Rs 175 crore, which was higher than the previous year's loss of just CPI and Polonexa, respectively. 138 crore was recorded as the net profit in the December quarter, with a 27% increase from the previous quarter's figure of -235 crore.
Zomato share cost fell 6% in early exchange on Tuesday after the company reported its Q4 comes about. Zomato offers declined as much as 5.98% to ₹182.10 each on the BSE.
Well known Food delivery platform Zomato reported a consolidated net profit of ₹175 crore in Q4FY24, compared to a loss of ₹188 crore in the year-ago period.
Net profit rose 27% from ₹ 138 crore posted in the December quarter.
Zomato's operating revenue increased by 73% to ₹3,562 crore in Q4 FY24 from ₹2,056 crore year-on-year.
Gross order value (GOV) in the March quarter grew 51% year-on-year to ₹13,536 crore across B2C companies. At the operating level, the company recorded his EBITDA of ₹8.
6 billion, an improvement from his loss of ₹226 million in the same period last year.
Blinkit, Zomato's quick commerce arm, achieved operational EBITDA breakeven in March 2024.
Analysts remain bullish on Zomato stock, with price targets partially raised following Blinkit's continued outperformance.
This is what the analyst said about Zomato's Q4 results and his Zomato stock price:
Nuvama Institutional Equities
Blinkit plans to increase the number of dark stores from 525 in Q4 FY24 to 1,000 by the end of FY25.
Although this will impact short-term profitability, it will solidify Brinkit as the clear leader in the quick commerce space, according to Nuvama Institutional Equities.
The company values Zomato at his SOTP, Food Delivery at his $10 billion and Blinkit at his $13 billion.
This upgrade was due to Blinkit's increased value driven by better-than-expected growth and clear leadership in the quick commerce space.
Elara Capital
Elara Capital said it continues to support Zomato due to its strong lead in the grocery business.
This could continue to register an adjusted EBITDA CAGR of 47% for FY24-26E, and Blinkit's superior execution (market leadership), supported by an ever-better customer experience.
Improved growth in Blinkit/Hyperpure increased consolidated revenue estimates for FY25E and FY26E by 22% and 33%, respectively.
However, consolidated profit growth in FY25E and FY26E was only 7% and 3%, respectively, due to higher ESOP fees and lower Blinkit's EBITDA (the latter focused on expansion.)
The broker maintained a Buy rating and raised the target price for Zomato stock to Rs 280 per share from Rs 250 earlier.
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