Zomato shares up ahead of Q3 results; sales may grow 50%, Blinkit commentary eyed

Shares of Zomato Ltd, which are up 54 per cent in the last six months, were trading 3 per cent higher in Thursday's trade ahead of the online food delivery platform's December quarter results, scheduled for later in the day.

Investors would be keenly follow commentary on market share gain in food delivery business, sequential MTU, order volume growth in food delivery business, customer delivery charges expansion in food delivery business and loss reduction for Blinkit.

Equirus Securities expect Zomato to report a profit of Rs 54.90 crore for the third quarter compared with a profit Rs 36 crore in the September quarter and a loss of 346.60 crore in the same quarter last year.

Revenue is seen rising 51 per cent YoY to Rs 3,575.20 crore from Rs 2,363 crore.

"While food delivery would post 7 per cent QoQ GOV growth, Blinkit would post a strong 10 per cent QoQ GOV growth. We expect sequential adjusted Ebitda  margin (as percentage of GOV) improvement in food delivery as well as Blinkit to be at 37 bps/146 bps respectively, compared to 8 bps/169 bps sequential improvement in 2QFY24," Equirus said.

Ahead of its Q3 earnings, Zomato said it received a communication regarding liquidation of Zomato Vietnam Company, step down subsidiary of Zomato with effect from February 2.

"Overall, the sequential growth is expected to see some moderation from peak. Food delivery should grow slower. Ebitda margin should see an uptick and likely to turn positive at 0.6 per cent. For Blinkit, traction is likely to continue in 3QFY24. Hyperpure should also continue its growth momentum. Watch out for the outlook on growth, margin sustainability and Blinkit," Motilal Oswal said.

This brokerage sees profit for Q3 at Rs 78.40 crore and sales a Rs 3,086 crore, up 58 per cent.

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