Zomato, the leading food delivery and technology company, is gearing up for an impressive financial report as it approaches the second quarter (Q2) of the fiscal year 2024-25. Analysts are predicting a remarkable 63% year-on-year (YoY) increase in revenue, following a strong performance in the previous quarter. With the company’s steady expansion across various business segments, this upcoming financial report is crucial for investors and stakeholders who are keen to assess Zomato’s ongoing growth trajectory.
| Table of Contents |
|---|
| Profit and Revenue Growth |
| Breakdown of Revenue Contributions from Various Divisions |
| Supporting Factors for Revenue Growth |
| EBITDA Performance |
| Review of Q1 FY25 Performance |
| Conclusion |
Profit and Revenue Growth
Zomato is expected to report a significant increase in both net profit and revenue for Q2FY25. Analysts project a remarkable 63% year-on-year (YoY) growth in revenue driven primarily by a robust 37% YoY increase in food delivery revenues. This surge showcases Zomato’s ability to capture market share and lean into consumer preferences for online food ordering.
Breakdown of Revenue Contributions from Various Divisions
The anticipated growth is bolstered by contributions from Zomato’s various divisions:
| Division | Projected YoY Revenue Growth |
|---|---|
| Food Delivery | 37% |
| Hyperpure | 74% |
| Blinkit | 122% |
Overall, the second quarter revenue is estimated to reach ₹4,644 crore, a substantial increase from ₹2,848 crore in the same period last year. This impressive growth reflects the company’s agile business model in the rapidly evolving food technology landscape.
Supporting Factors for Revenue Growth
Zomato’s anticipated revenue growth can be attributed to several supportive factors. With an 18.2% YoY increase overall, the increase in revenue also stems from an increase in the number of paying suppliers, up by 4.1%, alongside a 13.5% increase in average revenue per user (ARPU).
EBITDA Performance
Financial forecasts indicate an expected EBITDA of ₹238.9 crore for Q2FY25, showcasing a stark contrast to the previous year, which recorded a loss of ₹47 crore. The anticipated EBITDA margin has improved significantly, moving from a negative margin of -1.7% in the previous fiscal year to 5.1% YoY, highlighting effective cost management and operational efficiencies.
Review of Q1 FY25 Performance
To provide context for the anticipated Q2 performance, Zomato’s Q1FY25 results were notably impressive. The company reported a 74% YoY increase in consolidated revenue, reaching ₹4,206 crore. Other highlights included:
| Metric | Q1 FY25 | YoY Change |
|---|---|---|
| Gross Order Value (GOV) | ₹15,455 crore | 53% |
| Net Profit | ₹253 crore | From ₹2 crore |
Furthermore, Zomato’s division-wise performance reflects growth across all segments. Notably, quick commerce GOV surged by 130%, and the going-out GOV rose by 106% YoY. Hyperpure also demonstrated impressive growth, with a 96% YoY revenue increase.
Conclusion
As Zomato prepares to release its Q2 FY24-25 financial results, the company’s expanding business model in food delivery, quick commerce, and B2B services stands out. Investors will be eagerly anticipating strategic updates and future guidance from management that could shape market expectations moving forward. Overall, these financial outcomes will have significant implications for Zomato’s market positioning and investor sentiment.
FAQ
What are the key factors driving Zomato’s revenue growth?
Zomato’s revenue growth is driven by an increase in food delivery sales, significant growth in its Hyperpure and Blinkit divisions, an increase in average revenue per user, and a rising number of paying suppliers.
How does Zomato’s Q1 performance compare to previous quarters?
In Q1 FY25, Zomato reported a 74% YoY increase in revenue, a notable improvement from previous quarters, including success in growing both gross order value and net profit significantly.
What is EBITDA and why is it important for Zomato?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company’s overall financial performance. Zomato’s anticipated positive EBITDA signifies improved operational efficiency and profitability potential.
