Zomato Q2 Review - Gross Order Value Accelerates, And So Does Losses: Dolat Capital

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Dolat Capital Report

Zomato Ltd. reported revenue growth of 21.3% QoQ (our estimate: 8.5%) led by strong traction in food delivery biz (implied from 19.2% QoQ growth in food delivery gross order value) and hyperpure biz growth of 49% QoQ.

Ebitda margin declined to down 52.3% from down 44.6% (our estimate: 26.9%).

Excluding the employee stock ownership plan charges for Managing Director and Chief Executive Officer (Rs 1.9 billion), margin was ~down 33.2%.

The Ebitda margin largely decrease on account of decline in contribution level profitability to 1.2% of gross order value from 2.8% in Q1.

In Q2, Zomato has invested $75 million in Shiprocket (8% stake in business-to-business logistics-tech co.), $50 million in Magicpin (16% in hyperlocal discovery platform) and $50 million in Curefit (6% stake).

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