Q1 2025 Zomato Ltd Earnings Call Transcript
Key Points
- Zomato Ltd (BOM:543320) reported impressive year-on-year growth of 27-28% in the food delivery business, indicating strong demand.
- The company has managed to expand margins while continuing to invest in growth and long-term platform health.
- Zomato Ltd (BOM:543320) plans to open 2,000 dark stores by March 2026, showing confidence in scaling its quick commerce business.
- The company has successfully implemented a platform fee in food delivery, which could potentially increase revenue without significantly affecting volume growth.
- Zomato Ltd (BOM:543320) has a strong balance sheet and is not considering distributing cash to shareholders, indicating a focus on long-term growth and stability.
- The company faces challenges in predicting short-term profitability due to variables like competition and market conditions.
- There is uncertainty regarding the impact of potential social security benefits for delivery partners on margins.
- The quick commerce business may face inefficiencies and increased competition as it scales up, potentially affecting profitability.
- The implementation of a platform fee is untested and could impact demand if not managed carefully.
- Weather conditions like heatwaves and rains have affected delivery costs and margins, indicating vulnerability to external factors.
Ladies and gentlemen, a very good evening, and welcome to Zomato Limited's Q1 FY25 earnings conference call. From Zomato's management team, we have with us today Deepinder Goyal, Founder and CEO; Akshant Goyal, Chief Financial Officer; Albinder Dhindsa, Founder and CEO of Blinkit; and Kunal Swarup, Head of Corporate Development.
Before we begin, a few quick announcements for the attendees. Anything said on this call, which reflects outlook for the future or which could be construed as a forward-looking statement, may involve risks and uncertainties. Such statements or comments are not guarantees of future performance and actual results may differ from those statements.
Additionally, please note that this earnings call is scheduled for a duration of 45 minutes, and we'll be starting directly with the Q&A section of the call. (Operator Instructions)
Questions & Answers
Ankur Rudra, JPMorgan.
Seems like we're facing some technical difficulties. We'll circle back to Ankur.
Vivek Maheshwari, Jefferies.
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