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Dolat Capital Report
Zomato Ltd. reported strong revenue growth of 16% QoQ led by strong order growth in gross order value by nearly 10% - largely order volume led, while average order value grew marginally at ~Rs 369.
Hyperpure Biz (19% of revenue) grew by 40% QoQ and contributed 39% of incremental revenues in the quarter.
Ebitda margin stood at down 21.7% from down 37.1% (our estimate: down 32%). The beat was led by strong growth, higher customer delivery cost, optimisation on employee cost (down 14% QoQ), and operating leverage.
Contribution margin came in at 2.8% of gross order value (up from 1.7% in Q4).
Zomato showed resolute towards profitability in food-ordering business and expect the food business to turn adjusted-Ebitda positive over next three-five quarters.
However, the company has now toned down need for potential investment towards Blinkit by $80 million based on their current expectations of growth/profitability in that business.
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