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Informist, Tuesday, Oct. 22, 2024

 

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--Zomato Jul-Sept consol net profit INR 1.76 bln 
--Analysts saw Zomato Jul-Sept consol net profit INR 2.67 bln 
--Zomato Jul-Sept consol net profit INR 1.76 bln vs INR 360 mln year ago 
--Zomato Jul-Sept consol revenue INR 47.99 bln vs INR 28.48 bln year ago 
--Zomato Jul-Sept adjusted EBITDA INR 3.30 bln vs INR 410 mln year ago 
--Zomato Jul-Sept food delivery gross order value up 21% on year 
--Zomato Jul-Sept quick commerce gross order value up 122% on year 
--Zomato: New District app to go live in four weeks 
--Zomato Sept 30 cash balance INR 108.13 bln, down INR 17.26 bln 
--Zomato: Need to raise capital to tackle competition, boost balance sheet 
--Zomato: No plan for minority investment or acquisition 
--Zomato: Jul-Sept average monthly customers 20.7 mln vs 18.4 mln year ago 
--Zomato: Jul-Sept average partner restaurant 292,000 vs 238,000 year ago 
--Zomato: Jul-Sept avg monthly delivery partners 498,000 vs 410,000 yr ago 
--Zomato Jul-Sept food delivery adjusted sales INR 23.4 bln vs INR 19.4 bln 
--Zomato Jul-Sept quick commerce adjusted sale INR 11.56 bln vs INR 5.05 bln 
--Zomato Jul-Sept Hyperpure adjusted sales INR 14.73 bln vs INR 7.45 bln 
--Zomato Jul-Sept food delivery adjusted EBITDA INR 3.41 bln vs INR 2.04 bln 
--Zomato Jul-Sept quick commerce adjusted EBITDA INR (-)80 mln 
--Zomato Jul-Sept Hyperpure adjusted EBITDA INR (-)210 mln vs INR (-)340 mln 
--Zomato Apr-Sept consol net profit INR 4.29 bln vs INR 380 mln 
--Zomato Apr-Sept consol sales INR 90.05 bln vs INR 52.64 bln year ago 

 

MUMBAI – Zomato Tuesday reported lower-than-expected earnings for the September quarter. Zomato's consolidated net profit for the September quarter was INR 1.76 billion, up a whopping 388% on year from INR 360 million, but still missed analysts' estimates by a wide margin. Its consolidated revenue was INR 47.99 billion, up nearly 69% from INR 28.48 billion a year ago. Analysts had expected the company to report a consolidated net profit of INR 2.67 billion in Jul-Sept on consolidated revenues of INR 46.26 billion. The company's other income was INR 2.21 billion, the lowest in six quarters. 

 

The company's total expenses rose 57.4% to INR 47.83 billion from INR 30.39 billion a year ago. The company's purchases of stock-in-trade almost doubled to INR 13.69 billion from INR 6.85 billion a year ago. The company's other expenses were INR 26.49 billion, up 46.8% from INR 18.04 billion a year ago. Zomato spent INR 5.90 billion on its employee benefits expense, up 41.5% from INR 41.70 billion in the previous year. Its delivery and related charges were INR 13.98 billion, up 52.1% on year from INR 9.19 billion. 

 

Sequentially, the company's net profit fell 30.43% from INR 2.53 billion a quarter ago and its revenue rose 14.1% from INR 42.06 billion in the June quarter. The company's adjusted earnings before interest, tax, depreciation, and amortisation was INR 3.30 billion against INR 410 million in the previous year.

 

On a half-year basis, the company reported a consolidated net profit of INR 4.29 billion on consolidated revenues of INR 90.05 billion. Last year, the company had reported a consolidated net profit of INR 380 million for Apr-Sept on consolidated revenues of INR 52.64 billion.

 

Zomato's gross order value for its food delivery business was up 21% on year. Its gross order value for the quick commerce business was up 122% on year. Its gross order value for the going-out business was up 171% on year. The company reported adjusted sales of INR 23.4 billion from its food delivery business in Jul-Sept, up from INR 19.4 billion a year ago. It generated adjusted sales of INR 11.56 billion for the quick commerce business, up from INR 5.05 billion a year ago. The company's business-to-business segment, Hyperpure, reported sales of INR 14.73 billion in Jul-Sept, up from 7.45 billion a year ago.

 

For the food delivery segment, the adjusted EBIDTA rose to INR 3.41 billion from INR 2.04 billion a year ago. The company reported an adjusted EBIDTA of INR (-)80 million for its quick commerce business, up from INR (-)125 a year ago. The Hyperpure segment's adjusted EBIDTA was INR (-)210 million, up from INR (-)340 million a year ago. The company's cash balance as of Sept. 30 was INR 108.12 billion, down INR 17.26 billion, on account of the deal consideration for acquiring Paytm's entertainment ticketing business.

 

The company said it wants to raise more capital despite improving profits to tackle competition and to strengthen its balance sheet. The company said it has no plans for minority investments or acquisitions. Zomato said its new District app will be live in four weeks. The District app aims to provide various "going-out" services, such as dining, movies, sports ticketing, live performances, shopping, and staycations. 

 

For the food delivery business, the company's average monthly customers for Jul-Sept were 20.7 million, up from 18.4 million a year ago. Its average partner restaurants per month for the quarter rose to 292,000 from 238,000 a year ago. Zomato said its average monthly delivery partner count grew to 498,000 from 410,000 a year ago. 

 

The company said margins are not improving despite an increase in gross order value per day per store because of the investments it is making towards scaling up its infrastructure. In the current quarter, it added 152 net new stores and seven warehouses. "Since new stores and warehouses take a few months to ramp-up, they end up diluting margins in the short term", Zomato's chief financial officer, Akshant Goyal said. On the performance of new stores added under Blinkit, the company said new stores reach a gross order value of INR 700,000 per day in the first full quarter post launch. 

 

The company reported its earnings after market hours. Shares of the company closed at INR 256.35 on the National Stock Exchange Tuesday, up 3.5%.  End

 

Reported by Noopur Bhandiwad 

Edited by Deepshikha Bhardwaj

 

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