Eternal (ETERNAL) Q4 22/23 earnings summary

Executive summary

• FY23 Adjusted Revenue rose 57% YoY to INR 86.9bn; consolidated Adjusted EBITDA loss narrowed to INR 7.8bn from INR 9.7bn, while consolidated net loss was INR 9.71bn.

• Growth reflected food delivery and Hyperpure expansion plus Blinkit consolidation from Aug 10, 2022; Adjusted Revenue excluding quick commerce grew 42% to INR 78.9bn.

• Food delivery reached near breakeven for FY23 on Adjusted EBITDA; the food delivery business excluding quick commerce posted positive Adjusted EBITDA of INR 0.28bn in Q4FY23.

Financial highlights

• Consolidated revenue from operations increased 69% YoY to INR 70.8bn; consolidated net loss narrowed to INR 9.71bn from INR 12.225bn in FY22.

• Other income rose 38% to INR 6.8bn, mainly from higher treasury income as interest rates increased and funds were available for the full year after IPO proceeds were raised.

• Standalone revenue from operations was INR 47.1bn; standalone net profit was INR 1.169bn versus a net loss of INR 10.98bn in FY22.

• Consolidated operating cash outflow was INR 8.44bn; investing activities generated INR 4.57bn and financing activities used INR 1.27bn.

• Employee benefits expense fell to INR 14.65bn from INR 16.33bn, primarily as share-based payment expense declined by INR 3.7bn to INR 5.1bn.

Outlook and guidance

• Hyperpure began supplying Blinkit marketplace sellers; this was identified as a potential to make a more meaningful contribution to future revenue growth.

• Food delivery profitability gains were attributed to higher contribution margin and operating leverage; Bangalore Hyperpure turned profitable in March 2023 before central corporate overheads.

• Zomato Gold had 1.8m active members at FY23 year-end; the membership program was expected to support loyalty and higher ordering frequency.