Zomato Q4 results preview: Analysts expect rise in food delivery revenues

Q4 FY 24 results: Zomato is expected to deliver strong earnings growth in the fourth quarter of the financial year 2023-24

Food delivery platform Zomato is slated to announce its earnings for the fourth quarter (Q4) of the financial year 2023-24 (FY24) on Monday. Zomato will be among 59 other firms set to disclose their financial performance for the quarter ended March 2024 today.

Zomato Q4 FY24 results expectations

Analysts at Kotak Equities have forecasted a 65 per cent year-on-year (Y-o-Y) revenue growth for Zomato in Q4 FY24.

This growth projection is underpinned by a 41 per cent Y-o-Y increase in food delivery revenues, complemented by a 92 per cent Y-o-Y surge in Hyperpure revenues.

Key drivers of this anticipated growth include a 25 per cent Y-o-Y growth in food delivery gross merchandise value (GMV) and a slight sequential decline of three per cent, attributed to seasonal fluctuations.

Additionally, analysts expect a segment earnings before interest, taxes, depreciation, and amortisation (Ebitda) improvement, driven by fixed-cost operating leverage.

Furthermore, Blinkit, Zomato's quick-commerce business, is expected to contribute to the earnings growth with a remarkable 102 per cent Y-o-Y revenue increase.

"We also expect sequential reduction in losses in the Blinkit business driven by higher throughput of existing stores and quicker scale-up of new stores," analysts said.

JM Financial echoed the sentiment of growth for Zomato in Q4 FY24. They anticipate a 25 per cent Y-o-Y growth in gross order value (GOV) for the food delivery business, bolstered by a weak comparative base from the previous year. Similarly, Blinkit is expected to witness a significant 15 per cent sequential growth in GOV.

Zomato Q3 FY24 results

Zomato's performance in the third quarter (Q3) of FY24 reported its third consecutive quarter of consolidated net profit at Rs 138 crore, up from Rs 36 crore in the previous quarter. Revenue from operations surged by an impressive 69 per cent  Y-o-Y to Rs 3,288 crore in Q3 FY24. Additionally, the company achieved a positive adjusted Ebitda, including Blinkit, for the third consecutive quarter, standing at Rs 125 crore.

At 12 pm, Zomato shares were trading at Rs 196.45 apiece on the BSE.