Quick commerce to lead new-age Internet growth in Q4

Quick commerce will continue to be the fastest growing sub-segment among Internet companies in the January-March quarter, with Blinkit’s gross order value 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’s GOV, while Zomato’s food delivery business is expected to grow 29.2% year-on-year in Q4. When compared to Q3, Blinkit’s GOV is expected to grow 19.8% in Q4, while that of B2B business Hyperpure is likely to grow 9.6%.

Overall, the brokerage remains bullish on Zomato and analysts Abhisek Banerjee and Pradyut Ganesh expect the company to post an adjusted revenue growth of 6.9% over the preceding quarter and its adjusted Ebitda margin to improve to 6% from 3.5% in Q3.
Besides Zomato, beauty and personal care (BPC) unicorn Nykaa’s revenue is expected to grow about 29% 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% year-on-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% growth in express parcel shipment volume, while on a quarter-on-quarter basis it may decline 2%. Partial Truckload will continue to see a steady improvement in volume in Q4, the report added.

Meanwhile, Nazara Technologies is likely to see a 6.6% growth in sales, on a y-o-y basis, most of which will be on account of its 31% growth in esports business. When compared to Q3, both revenue and profit are expected to decline in Q4.