Zomato shares have given more than 50% return on Year to date basis and over 270% from a year earlier as optimism run hot by investors that the stock has a room to run. Continuing the habit of ordering food at home and at same time growing food delivery market implies Zomato's GOV will continue to rise even though the company does not see a material market share gain.
As per previous quarterly report, GOV growth in food delivery segment was up to 25%+ YoY. The company expects GOV to continue growing at 20%+ YoY, and perhaps accelerate further if they see more than expected market share gains and revival in macro consumer demand. The monthly active restaurant base on platform has grown by 20%+ YoY quarter under observation. This growth is driven both by new restaurants opening-up and our coverage of existing restaurants increasing.
The Blinkit business continues to scale, well-driven by new store addition and improving customer engagement. Blinkit GOV growth at 103% YoY and 28% Q-o-Q continues unabated. Losses continue to decline and company hope to be on track to meet guidance of Adjusted EBITDA break-even on or before Q1FY25.
Blinkit's average order value (AOV) has grown significantly due to adding newer categories, especially in the D2C space, which has played a big role in the company's rising revenues as it minimizes losses. In the December quarter, Blinkit's AOV was Rs 635, up from Rs 553 a year earlier, and Rs 607 in the September quarter.
Zomato Gold is being used tactically to acquire customers in furious competitive environment and hence the pricing of the membership program is much lower. Even after gold membership drops, the margins continued to expand due to incremental improvements in other aspects of the business, as has been the case over the last four quarters since the launch of the Gold program. Intro of platform fee for all customers has also lead to improvement in margin.
The company’s financials has come from red to green. In December quarter company recorded profit of Rs. 138 cr from a loss of Rs 346 cr year earlier. Operating profit markets has been coming toward green.
| QUARTERLY | Dec-23 | Sep-23 | Jun-23 | Mar-23 | Dec-22 |
| Total Income | 3,507.00 | 3,060.00 | 2,597.00 | 2,226.50 | 2,121.60 |
| Total Income Growth (%) | 14.61 | 17.83 | 16.64 | 4.94 | 15.88 |
| Total Expenses | 3,365.00 | 3,023.00 | 2,594.00 | 2,415.10 | 2,469.20 |
| Total Expenses Growth (%) | 11.31 | 16.54 | 7.41 | -2.19 | 18.75 |
| EBIT | 142 | 37 | 3 | -188.6 | -347.6 |
| EBIT Growth (%) | 283.78 | 1,133.33 | - | - | - |
| Profit after Tax (PAT) | 138 | 36 | 2 | -188.2 | -346.6 |
| PAT Growth (%) | 283.33 | 1,700.00 | - | - | - |
| EBIT Margin (%) | 4.05 | 1.21 | 0.12 | -8.47 | -16.38 |
| Net Profit Margin (%) | 3.93 | 1.18 | 0.08 | -8.45 | -16.34 |
From early April of 2023, the stock has been trading in a parallel channel line and the stock has defended 9-day Exponential movies average on a weekly timeframe, and every dip has been bought into as the stock approached or crosses 9-D EMA.`
