Team Blitz India
Quick commerce will continue to be the fastest growing subsegment among Internet companies in the January-March quarter, with Blinkit’s gross order value (GOV) more than doubling during the quarter on a year-on-year basis, analysts at ICICI Securities said in a recent report.
A mix of store expansion and product assortment will aid the growth of Blinkit, while Zomato’s food delivery business is expected to grow 29.2 per cent year-on-year in fourth quarter. When compared to the third quarter, Blinkit’s GOV is expected to grow 19.8 per cent in fourth quarter, while that B2B business Hyperpure is likely to grow 9.6 per cent.
Overall, the brokerage remains bullish on Zomato and analysts expect the company to post an adjusted revenue growth of 6.9 per cent over the preceding quarter and its adjusted Ebitda margin to improve to 6 per cent from 3.5 per cent in the third quarter.
Besides Zomato, beauty and personal care unicorn Nykaa’s revenue is expected to grow about 29 per cent year-on-year, implying further gain in share from offline retailers. As per management’s earlier commentary, net sales value, or the value of items sold after discounts, is expected to grow in high-twenties, higher than the growth expected from the broader BPC category.
ICICI Securities analysts expect Ebitda growth of 27.9 per cent yearon-year, while Ebitda margin may decline about 10 bps over Q3. The company had reported a net profit of Rs 17 crore in the October-December quarter, on an operating revenue of Rs 1,789 crore.
As for Delhivery, the brokerage expects a 9.4 per cent growth in express parcel shipment volume, while on a quarter-on-quarter basis it may decline 2 per cent. Partial Truckload will continue to see a steady improvement in volume in fourth quarter, the report added.
Meanwhile, Nazara Technologies is likely to see a 6.6 per cent growth in sales, on a year on year basis, most of which will be on account of its 31 per cent growth in esports business. When compared to the third quarter, both revenue and profit are expected to decline in the fourth quarter.
