Event update: Info Edge India (Neutral); Zomato 1HFY20 – Strong scale up with lower burn
Zomato (INFOE’s investee company) disclosed their 1HFY20 numbers which suggests 1) Strong growth of 225% y-y to USD205mn (similar to FY19 revenues) with a 40% lower burn in Sep-19 vs Mar-19 2) Strong scale up in food delivery business with order volumes jumping ~4x, GMV up more than 3x and revenues up ~4.5x over this period and 3) Modest growth in dine out business at 15% y-y with revenues at 13% of overall, but limited impact of recent protests around discounting by restaurants on Zomato Gold offering. Continued strong growth with burn reduction could be a positive catalyst for INFOE. We currently have a Neutral on near term caution on growth in naukri, 99acres and impending food delivery business launch by Amazon. Await better entry points.
Overall business – Matches FY19 revenues in 1HFY20
- Revenues up 225% y-y in 1HFY20 to USD205mn. This compares with Zomato’s FY19 revenues of USD206mn. EBITDA loss in Sep-19 is down 40% versus that in Mar-19. The company posted EBITDA loss of USD294mn in FY19.
Food delivery business – Strong scale up seen here
- In 1HFY20, Food delivery business scaled up from 200 to 500 cities, with order volumes up to 214mn (vs 55mn in 1HFY19) and GMV up from USD254mn to USD821mn y-y. Average order value (AOV) fell from USD4.6 to USD3.8 in 1HFY20. Order volumes doubled in top 15 cities over this period and 35% of volumes are driven by non-top 15 cities.
- Average monthly transacting users expanded by 211% to 11.2mn in 1HFY20, with average monthly active restaurants up 177% to 119K and average monthly active delivery partners up 308% to 200K. Average monthly user order frequency went up from 3.1 to 3.6 on y-y basis.
Dine out business – Modest growth but limited logout campaign impact
- Dine out revenues grew 15% to USD27.3mn (~13% of overall), even as restaurant listings went up to 270K in India and 1.5mn globally.
- Table reservations where company does not currently charge, has grown from 800K to 1.3mn booked covers in Sep-19.
- Zomato Gold membership has expanded 180% y-y to 1.4mn. Cities with Gold eligibility is up from 20 to 54 on a y-y basis.
Info Edge India is an online classifieds company specializing in recruitment, matrimony, real estate, education and related services. Co.'s recruitment business is an online recruitment classifieds and offline executive search operated through several websites. The matrimony business comprises online matrimony classifieds and 14 offline Jeevansathi Match Points. Co.'s real estate business comprises online real estate classifieds, a real estate brokerage business, housed in a subsidiary named Allcheckdeals.com India Private Limited. The education comprises online education classifieds. As of Mar 31 2014, Co. had a network of 56 offices located in 42 cities throughout India
IDFC Securities Ltd., a subsidiary of the Infrastructure Development Finance Company (IDFC) wherein the Government of India holds a 20% interest, is India's leading equities broker catering to most of the prominent financial institutions, both foreign and domestic investing in Indian equities. A research team of experienced and dedicated experts ensures the flow of critically investigated stock ideas and portfolio strategies for our clients. Our coverage spans across various growth sectors such as agriculture, automobiles, Consumer Goods, Technology, Healthcare, Infrastructure, Media, Power, Real Estate, Telecom, Capital Goods, Logistics, Cement amongst other sectors. Our clients value us for our strong research-led investment ideas, superior client servicing track record and exceptional execution skills.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.