As Zomato gears up to unveil its Q2 results for FY 2024-25 on October 22, 2024, the anticipation among investors and analysts grows, fueled by expectations of significant revenue and profit growth. With a projected 63% year-on-year revenue increase, expected to hit approximately ₹4,644 crore, Zomato’s continued expansion in food delivery and strong performances from its subsidiaries, Hyperpure and Blinkit, indicate a thriving business ecosystem. This article delves into Zomato’s anticipated financial performance, key metrics, and future outlook within the competitive online food delivery market.
Anticipated Financial Performance
According to analysts from Kotak Institutional Equities, Zomato is on track to achieve impressive growth metrics this quarter. There is an anticipated 37% increase in food delivery revenues, driven by the company’s strategic initiatives to improve service offerings. Furthermore, Hyperpure revenues are expected to soar by 74%, while Blinkit could see an extraordinary 122% growth. This robust market performance is further reflected in the company’s projected EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which analysts estimate will be around ₹238.9 crore—a remarkable recovery from the loss of ₹47 crore in the same quarter last year. The EBITDA margin is also set to show significant improvement, rising to 5.1% compared to the previous year’s negative margin of 1.7%.
Profit After Tax Projections
The Profit After Tax (PAT) is set for a dramatic rise, with projections indicating an astonishing 749% year-on-year increase. Experts estimate that PAT could reach approximately ₹305.67 crore, a leap from ₹36 crore recorded in Q2 FY24. Additionally, this marks a quarter-on-quarter growth of around 20.8%, with a rise from ₹253 crore reported in the previous quarter, showcasing Zomato’s resilience and market adaptability in a rapidly evolving sector.
Market Reactions and Future Outlook
With the earnings announcement on the horizon, market sentiment remains high as investors await insights from management regarding Blinkit’s performance and updates on the ‘District’ scaling strategy. Zomato’s Q1 results for FY25 already demonstrated a 74% rise in consolidated revenue, reinforcing analyst confidence in continued growth into Q2. Overall, Zomato’s expected financial results not only reflect strong operational achievements but also emphasize its strategic initiatives that position the company favorably against peers in the online food delivery market.
(Disclaimer: The views expressed by analysts do not necessarily reflect those of Zomato or its management.)