Zomato Q2 Review - Treading The Info Edge Path: ICICI Securities
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Zomato Ltd.’s Q2 FY22 revenue growth was incredibly strong (up 21% QoQ and 140% YoY) and way higher than our expectations (up 10% QoQ).
Delivery fee (up 25% QoQ) outgrew gross order value (up 19% QoQ) by a margin, hinting at a meaningful increase in delivery charges, as we anticipated in our initiation note.
Operationally, Zomato's both supply and demand side metrics reported an impressive increase.
This strength seems to be driven by opportunistic branding and marketing investments focused on driving the return of customer traffic post the second Covid-19 wave.
increase in delivery cost (Rs 5 / order or Rs 0.73 billion, versus Q1 FY22),
growing share of cities outside top-20 and
higher employee stock ownership plan expenses led to Rs 1.6 billion higher Ebitda loss versus the previous quarter.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.