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Zomato's latest Q1 FY25 Results:
### **1. Overview of Q1 FY25 Results:**
- **Revenue:** Zomato reported consolidated revenue from operations at INR 4,206 crore for Q1 FY25, a significant increase from INR 3,562 crore in the previous quarter and INR 2,416 crore in Q1 FY24.
- **Profitability:** The profit for the quarter was INR 253 crore, an increase from INR 175 crore in Q4 FY24 and INR 2 crore in Q1 FY24.
- **Adjusted EBITDA:** Consolidated adjusted EBITDA increased by INR 287 crore YoY to INR 299 crore in Q1 FY25, driven by margin expansion across all business segments.
### **2. Key Highlights:**
- **Growth:** GOV growth across B2C businesses (food delivery, quick commerce, and going-out) accelerated to 53% YoY (14% QoQ) to INR 15,455 crore.
- **Food Delivery:** Food delivery GOV grew 27% YoY (10% QoQ).
- **Quick Commerce:** Quick commerce GOV grew 130% YoY (22% QoQ).
- **Going-out GOV:** This segment grew 106% YoY (19% QoQ).
- **B2B Business:** Hyperpure’s revenue grew 96% YoY (27% QoQ) with improving profitability.
### **3. Segment Performance:**
- **India Food Ordering and Delivery:** Revenue of INR 1,942 crore.
- **Hyperpure Supplies (B2B):** Revenue of INR 1,212 crore.
- **Quick Commerce:** Revenue of INR 942 crore.
- **Going Out:** Revenue of INR 95 crore.
- **All Other Segments:** Revenue of INR 15 crore.
### **4. Financial Ratios:**
#### **Profitability Ratios:**
- **Gross Profit Margin:** Increased due to higher revenue and better cost management.
- **Net Profit Margin:** Improved to reflect positive profit growth.
#### **Solvency Ratios:**
- **Debt to Equity Ratio:** Remained stable, indicating a balanced approach to leveraging.
#### **Liquidity Ratios:**
- **Current Ratio:** Improved, indicating better short-term financial health.
- **Quick Ratio:** Also improved, reflecting efficient management of liquid assets.
#### **Return Ratios:**
- **Return on Equity (ROE):** Increased significantly due to improved profitability.
- **Return on Assets (ROA):** Improved, indicating better asset utilization.
### **5. Industry Overview:**
The e-commerce and food delivery industry in India is experiencing rapid growth, driven by increasing internet penetration, smartphone usage, and a shift in consumer behavior towards online ordering. The quick commerce segment is also expanding rapidly, catering to the demand for faster delivery of groceries and daily essentials.
### **6. Peer Group Analysis:**
- **Swiggy:** A primary competitor in the food delivery space, showing similar growth trends but facing intense competition.
- **Dunzo:** Competes in the quick commerce segment, focusing on fast deliveries.
- **Blinkit:** Also a strong player in the quick commerce segment, showing significant growth. Zomato is the parent company of Blinkit.
### **7. Historical Performance and Future Outlook:**
- **Historical Performance:** Zomato has shown robust growth in revenue and profitability over the past few quarters, with a CAGR of 30% in food delivery GOV from FY20 to FY24.
- **Future Outlook:** The company plans to continue expanding its quick commerce and going-out segments, targeting 2,000 stores by 2026. Zomato also aims to improve its platform health by enhancing the welfare of delivery partners and expanding restaurant partnerships.
### **Conclusion:**
Zomato's Q1 FY25 results reflect strong growth and improved profitability across its business segments. The company is well-positioned to capitalize on the growing e-commerce and food delivery market in India, with strategic investments in quick commerce and going-out offerings. The positive financial ratios indicate robust financial health, and the future outlook suggests continued growth and expansion.
If you need more specific data points or further analysis, We will be updating the full report!
