Zomato Q1 Review - Order Growth Accelerates, And So Does Losses: Dolat Capital
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Dolat Capital Report
Zomato Ltd. reported revenue growth of 20.9% QoQ (our estimate: 6.1%) led by strong traction in food delivery business (implied from 37% QoQ growth in food delivery gross order value; order growth of ~20% QoQ).
Dining out and Hyperpure implied decline in revenues is about ~25%/2% QoQ respectively.
Zomato's Ebitda margin declined to down 44.6% from down 22.2% (our estimate: down 19.9%).
This was largely due to increase in non-cash employee stock ownership cost by ~Rs 2 billion of which Rs 1.7 billion is attributed to Managing Director and Chief Executive Officer’s ESOPs (368.5 million ESOP at 37/per share).
Ebitda margin excluding-ESOP cost was ~down 20.1% from down 17.4% in Q4 FY21.
The underlying business metrics are performing well.
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