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ZOMATO 2023-24 Annual Report Analysis

Tue, 6 Aug

ZOMATO has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

ZOMATO Income Statement Analysis

• Operating income during the year rose 71.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 0.1% in FY24 as against 17.7% in FY23.
• Depreciation charges increased by 20.4% and finance costs increased by 46.9% YoY, respectively.
• Other income grew by 21.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 13.7% in FY23 to 2.9% in FY24.

ZOMATO Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	70,790	121,140	71.1%
Other income	Rs m	7,250	8,810	21.5%
Total Revenues	Rs m	78,040	129,950	66.5%
Gross profit	Rs m	-12,540	80	NA
Depreciation	Rs m	4,370	5,260	20.4%
Interest	Rs m	490	720	46.9%
Profit before tax	Rs m	-10,150	2,910	NA
Tax	Rs m	-440	-600	NA
Profit after tax	Rs m	-9,710	3,510	NA
Gross profit margin	%	-17.7	0.1
Effective tax rate	%	4.3	-20.6
Net profit margin	%	-13.7	2.9

For Investors: Our Big Prediction

ZOMATO Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 21 billion as compared to Rs 14 billion in FY23, thereby witnessing an increase of 44.6%.
• Current assets fell 50% and stood at Rs 55 billion, while fixed assets rose 66% and stood at Rs 179 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 234 billion as against Rs 216 billion during FY23, thereby witnessing a growth of 8%.

ZOMATO Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	181,670	197,300	8.6
Current Liabilities	Rs m	14,410	20,830	44.6
Long-term Debt	Rs m	60	0	-100.0
Total Liabilities	Rs m	216,010	233,600	8.1
Current assets	Rs m	108,310	54,580	-49.6
Fixed Assets	Rs m	107,700	179,020	66.2
Total Assets	Rs m	216,010	233,600	8.1

ZOMATO Cash Flow Statement Analysis

• ZOMATO's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 910 million from the Rs -2 billion net cash flows seen during FY23.

ZOMATO Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	-8,440	6,460	-
Cash Flow from Investing Activities	Rs m	4,570	-3,470	-
Cash Flow from Financing Activities	Rs m	-1,270	-2,070	-
Net Cash Flow	Rs m	-1,740	910	-

Current Valuations for ZOMATO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an improvement from the EPS of Rs -1.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 265.1, stands at 388.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.9 times, while the price to sales ratio stands at 19.0 times.
• The company's price to cash flow (P/CF) ratio stood at 118.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	8.5	14.0
TTM Earnings per share	Rs	-1.2	0.4
Diluted earnings per share	Rs	-1.1	0.4
Price to Cash Flow	x	-84.3	118.7
TTM P/E ratio	x	-46.3	388.8
Price / Book Value ratio	x	3.0	5.3
Market Cap	Rs m	538,431	1,041,197
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ZOMATO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY24, from 7.5x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 5.0x during FY24, from -19.7x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 1.8% during FY24, from -5.3% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 1.8% during FY24, from -5.3% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 1.8% during FY24, from -4.3% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	7.5	2.6
Debtors’ Days	Days	2	2
Interest coverage	x	-19.7	5.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-4.3	1.8
Return on equity	%	-5.3	1.8
Return on capital employed	%	-5.3	1.8

To see how ZOMATO has performed over the last 5 years, please visit here.

ZOMATO Share Price Performance

Over the last one year, ZOMATO share price has moved up from Rs 95.4 to Rs 265.1, registering a gain of Rs 169.6 or around 177.7%.

Overall, the S&P BSE SENSEX is up 21.1% over the year.

(To know more, check out historical annual results for ZOMATO and quarterly results for ZOMATO)