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ZOMATO 2022-23 Annual Report Analysis

Sun, 6 Aug

ZOMATO has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

ZOMATO Income Statement Analysis

• Operating income during the year rose 68.9% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 17.7% in FY23 as against 37.5% in FY22.
• Depreciation charges increased by 190.7% and finance costs increased by 305.8% YoY, respectively.
• Other income grew by 40.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 29.2% in FY22 to 13.7% in FY23.

ZOMATO Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	41,924	70,794	68.9%
Other income	Rs m	5,143	7,246	40.9%
Total Revenues	Rs m	47,067	78,040	65.8%
Gross profit	Rs m	-15,725	-12,536	NA
Depreciation	Rs m	1,503	4,369	190.7%
Interest	Rs m	120	487	305.8%
Profit before tax	Rs m	-12,205	-10,146	NA
Tax	Rs m	20	-436	NA
Profit after tax	Rs m	-12,225	-9,710	NA
Gross profit margin	%	-37.5	-17.7
Effective tax rate	%	-0.2	4.3
Net profit margin	%	-29.2	-13.7

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ZOMATO Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 14 billion as compared to Rs 7 billion in FY22, thereby witnessing an increase of 102.5%.
• Long-term debt stood at Rs 58 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 44% and stood at Rs 108 billion, while fixed assets rose 10% and stood at Rs 108 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 216 billion as against Rs 173 billion during FY22, thereby witnessing a growth of 25%.

ZOMATO Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	153,802	181,662	18.1
Current Liabilities	Rs m	7,115	14,410	102.5
Long-term Debt	Rs m	0	58	0.0
Total Liabilities	Rs m	173,284	216,002	24.7
Current assets	Rs m	75,450	108,310	43.6
Fixed Assets	Rs m	97,834	107,692	10.1
Total Assets	Rs m	173,284	216,002	24.7

ZOMATO Cash Flow Statement Analysis

• ZOMATO's cash flow from operating activities (CFO) during FY23 stood at Rs -8 billion, an improvement of 21.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -2 billion from the Rs 858 million net cash flows seen during FY22.

ZOMATO Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-6,930	-8,440	-
Cash Flow from Investing Activities	Rs m	-79,378	4,573	-
Cash Flow from Financing Activities	Rs m	87,498	-1,274	-
Net Cash Flow	Rs m	858	-1,742	-

Current Valuations for ZOMATO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.2, an improvement from the EPS of Rs -1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 95.4, stands at -104.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 11.3 times.
• The company's price to cash flow (P/CF) ratio stood at -100.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	5.5	8.5
TTM Earnings per share	Rs	-1.6	-1.2
Diluted earnings per share	Rs	-1.4	-1.1
Price to Cash Flow	x	-66.0	-100.8
TTM P/E ratio	x	-57.9	-104.9
Price / Book Value ratio	x	6.1	3.0
Market Cap	Rs m	934,923	538,431
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 7.5x during FY23, from 10.6x during FY22. 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 -19.8x during FY23, from -100.7x during FY22. 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 -5.3% during FY23, from -7.9% during FY23. 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 -5.3% during FY23, from -7.9% during FY22. 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 -4.3% during FY23, from -7.0% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	10.6	7.5
Debtors’ Days	Days	14	24
Interest coverage	x	-100.7	-19.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-7.0	-4.3
Return on equity	%	-7.9	-5.3
Return on capital employed	%	-7.9	-5.3

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 54.5 to Rs 95.4, registering a gain of Rs 40.9 or around 75.1%.

Overall, the S&P BSE SENSEX is up 12.6% over the year.

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