zomato
There is expected to be a huge jump in the profits of food delivery app Zomato. The company will release its September quarter results today. Meanwhile, some top domestic brokerage firms have estimated that Zomato’s net profit is expected to grow by 585%-662% year-on-year in the September quarter. According to the brokerage form, the net profit of the company could be between Rs 247 crore and Rs 274 crore. According to estimates by Nuvama Institutional Equities and ICICI Securities, the company’s revenue could be between Rs 4,571 crore and Rs 5,111 crore. That means an increase of between 61% to 80% can be seen in revenue. In view of the excellent performance of Zomato, Bank of America has maintained its buy rating on Zomato and has raised the target price of the stock to Rs 325 per share.
Nuvama Institutional Equities
Nuvama Institutional Equities expects Zomato’s revenue to grow 61% and 9% on year-on-year and quarter-on-quarter basis, respectively, to Rs 4,571 crore, while its core profit after tax (PAT) is at Rs 247 crore. Estimated, that would be a huge increase of 585%. Nuvama said in its preview note that adjusted revenues of the food delivery business are likely to grow 2.8% quarter-on-quarter and about 20% year-on-year due to volume growth.
ICICI Securities
ICICI Securities pegs Zomato’s revenue for the July to September quarter at Rs 5,111 crore, representing an 80% year-on-year growth and 22% quarter-on-quarter growth. Net profit for the quarter under review is expected to be around Rs 274 crore, a jump of 662% year-on-year and 8.4% on quarter-on-quarter basis. EBITDA in the three-month period under review may be around Rs 198 crore, compared to a loss of Rs 470 crore in Q2FY24. It may increase by 12% on quarter-on-quarter basis.
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