ETERNAL LIMITED

Akshant Goyal

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Sachin Salgaonkar

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Akshant Goyal

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Akshant Goyal

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Swapnil Potdukhe

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Akshant Goyal

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Gaurav Rateria

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Gaurav Rateria

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Akshant Goyal

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Sudheer Guntupalli

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So, I think that's why you see that decline.

— Akshant Goyal

And number two, until last quarter, we are talking about consumption slowdown, discretionary slowdown, so on and so forth.

— Sudheer Guntupalli

I think the assumption here is that the worst is behind us in terms of the demand slowdown that we saw.

— Akshant Goyal

But shouldn't there be a bit of a stress that restaurant should be facing right now given the input prices have actually hardened quite a bit.

— Vivek Maheshwari

We have seen it decline by more than 1,000 basis points in the last one year.

— Nikhil Choudhary

And obviously, some of it is because of the synergy between the two platforms, Blinkit and Zomato, which you mentioned and also due to overall decline in supply side challenges.

— Nikhil Choudhary

And as I mentioned, September quarter is when the impact of annual appraisals will also impact that cost and it should go up from here.

— Akshant Goyal

So, I think overall, yes, there is some stress, but I think they're also taking the right initiatives to ensure that growth continues on the platform.

— Kunal Swarup

Is it possible for you to call out a range of what has been the drag because of Zomato Gold in this quarter?

— Niket Shah

Q

Hi, thank you for the opportunity. Congratulations for a great set of numbers. I have 3 questions. First question is regarding the 11% QoQ GOV growth. Clearly, the 4 reasons that you guys have given are clear, but I just wanted to check how much was the IPL impact, and any way you guys could quantify that?

Akshant Goyal

Hi Sachin, thank you for your question. Akshant this side. Over the years, we've seen that IPL doesn't have too much of an impact on our business, except for a few matches towards the fag end. I think seasonality has more to do with the weather, school holidays and stuff like that. And this was pretty clear to us in the year before last, when the IPL actually got shifted to October quarter, and it was during that year that we saw that our business in the summer was still higher despite there being no IPL. So, I think it's fairly clear to us now that IPL has a very limited impact on our busines

Q

Hi, thank you, congratulations for a great set of numbers. My question is, just a Q-o-Q drop in employee expenses. Just wondering if there's anything to that. I'm talking about expenses, excluding the ESOP charges. That's question one.

Akshant Goyal

Hi Vijit. So yes, I think our employee expenses have come down in the last 2 quarters. And I think this is largely a function of the rightsizing that we did in the December quarter. I think all of that is fully flowing into our P&L now, given that there were some severance payouts in the previous quarter. So, I think that's why you see that decline. Got it. Akshant, fair to say this would include any annual pay hike or is that in a different cycle for you guys? Our cycle is actually July to July. So, you will see that impact in the next quarter. Okay. Got it. My next question is on just a coup

Q

Hi everyone, thanks for the opportunity, great set of numbers. I have a couple of questions on the delivery side and a couple of them on the quick commerce side. First, there has been a mention of some risky bets that seem to have paid off for you. Would you be able to call them out? And in the same breath, can you also mention any more initiatives that you are working on, that can be termed risky?

Akshant Goyal

No, I think the reference there was largely to the changes that we did on the people side and some calls we took on driving growth like on Zomato Gold, where at that time, we felt that there was a perception that, it will impact the business in a negative way. So I think largely, that was what we meant with this. We're not talking about any business calls here, which investors are not aware of. Got it. And secondly, there has been a 100-basis point QoQ improvement in the take rates. Now would you be able to call out how much of that is because of ad income, pure-play restaurant commissions and

Q

Hi, good evening, thank you so much for taking my questions and thank you for all the disclosure around numbers and guidance as you think about the business for the next few years. Just a few clarifications on some of the numbers you've given in the shareholders’ letter. So, you've called out a growth rate in Blinkit of 60% plus on GOV for the foreseeable future and overall Adjusted Revenue growth of 40% plus. So back of the envelope calculation, would suggest maybe 25% plus or 30% thereabout kind of food delivery growth in the next few years. Firstly, do you agree with that number? Food deliv

Akshant Goyal

We haven't stated any growth targets or guidance for food delivery, Manish. So, I can't comment on this. Right, and does that comment from your previous quarters where incrementally, most of the growth in food delivery will come from user growth, that comment would still stand, right? So, if, let's say, 25%, 30% you were to grow, and that large part should come from user growth? Would that be a fair assumption? Yes Manish, and even in this quarter, you have seen the MTU grow. So, we expect that to continue. Understood. My second question, maybe to Albinder. So Albinder, in the question, in the

Q

Hi, congratulations on a great set of numbers. A few questions. The first is on contribution margins in food business, which is now at 6.4%, for you to hit your target of 4% to 5% Adjusted EBITDA margins, where should this number settle down? And what will be the key drivers for that?

Akshant Goyal

Gaurav, largely, I think there is some bit of operating leverage which will continue as we scale in this business. So, if the EBITDA margin goes up by 2 percentage points, we can get there even with a slightly lower contribution margin growth, right? So ballpark, even in the past, we have spoken about 8% contribution to GOV this business. I think that is what we are aiming for, and we believe that should get us to the 4% to 5% EBITDA margin in this business. Got it. Second question is how much of Hyperpure growth came from your synergies between Hyperpure and Blinkit? And is there a case to be

Q

Hello, thanks for taking my question and congratulations on great set of numbers. So just on your guidance of 40% plus year-on-year Adjusted Revenue growth for at least the next couple of years. So Akshant, what is giving you that confidence, especially in an economy where the nominal GDP growth is averaging just around 10%, you're talking about 4x GDP growth multiplier. That is number one. And number two, until last quarter, we are talking about consumption slowdown, discretionary slowdown, so on and so forth. And now we are talking about confidence of 40% plus year-on-year growth at least fo

Akshant Goyal

Sudheer, Hi, Akshant this side. I'm wondering if your understanding of this 40% is only for food delivery because this is a guidance at the overall revenue level, which even in the last 4, 5 quarters, has been north of 50% year-on-year, right? I think given we have a portfolio of businesses and while food delivery growth has been relatively muted last few quarters, which is what you're also saying, but at the same time, Hyperpure, Dining Out and Blinkit have grown really well. And I think the message here that we want to give is that as a portfolio we will continue to grow at that pace while s

Q

Hello.

Akshant Goyal

Hi Mukul. Hey, great quarter, guys, congratulations. Just a couple of questions. First, on the take rate during this quarter, I know this came up earlier also, but can you just help understand what steps were really undertaken this quarter as you have in the past mentioned that incrementally taking up that take rate would be a lot more gradual. But (inaudible).

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Hi, am I audible?

Management

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A couple of things. First, on the food delivery, Akshant, that's what the previous participant asked. When we talk to QSR companies on the delivery side, their outlook is not as buoyant as or positive as, you are. Is there a difference between, let's say, independents versus, let's say, chain restaurant? Is there any such trend which is underway, which is why, let's say, your outlook is far positive as compared to the QSR folks?

Akshant Goyal

Yes, so I think as we mentioned in the past, QSR contributes single-digit percentage point of our business overall. So, most of our business on our platform happens through smaller restaurants and a few outlet chains. So yes, at least as far as our business is concerned and the data that we are seeing, we feel there's no reason to believe that we should not be able to grow well from here on, right, at least on a year-on-year basis. Okay and given the presence you have, I'm sure you would be interacting with those restaurants given where the food inflation is, honestly, I don't know beyond QSR

Q

Hi, can you hear me?

Akshant Goyal

Hi Ashwin. Hi, Akshant, thanks for the question, congrats on a good set of numbers. The first question is in terms of take rates. We've seen almost a 200-bps increase over the last year. How much more scope do you see in terms of increases there? And then the second one is in terms of Blinkit wherein if you can give some color in terms of advertising pickup in Blinkit and how should that affect the take rates in Blinkit? Yes. So large part of the take rate increase on the food side that you're talking about Ashwin is because of the growth in ad sales that we have seen. And as I mentioned in re

Q

Hi, thanks for the opportunity and congrats on such a good set of numbers. First is on the 100- store increase for Blinkit and what Albinder clarified that it's primarily in the existing geography. Is it safe to assume the GOV, which is about 620,000, 625,000 per store, that would be a steady-state number given you are increasing the store count in existing geography? And why I'm asking this, as one of your large competitor mentioned that GOV for them is still higher. So, any clarity there? Albinder Singh Dhinda: Hi Nikhil, I think the GOV per store that we display, I think it depends more on

Nikhil Choudhary

Sure, second question is regarding the employee cost as a percentage of revenue. We have seen it decline by more than 1,000 basis points in the last one year. And obviously, some of it is because of the synergy between the two platforms, Blinkit and Zomato, which you mentioned and also due to overall decline in supply side challenges. What would be the steady state as a percentage of revenue employee cost would be, anything you are targeting? I think we feel, at this point, the organization is rightsized for the businesses that we have. And as I mentioned, September quarter is when the impact

Q

Thanks for the opportunity, two questions. First of all, just want to get sense about how inflation impacts our business across segment. So, if you can give some sense about how one should look at revenue impact and margin impact, food inflation as well as overall inflation. Second question is about Hyperpure business. If you can provide some sense about how many restaurant partners, let's say, we have now to which you are supplying the ingredient. And in terms of percentage of supply sourced by them, how it has moved, let's say, year-on-year, if you can provide some color, thanks.

Kunal Swarup

Hi Dipesh, Kunal here. I think I'll take the first question first. So like Akshant mentioned this now as well, yes, food inflation is impacting restaurants, but because their sales are getting impacted, they are also ending up spending more on advertising and trying to grow the business. So, I think overall, yes, there is some stress, but I think they're also taking the right initiatives to ensure that growth continues on the platform. I think this inflation being up and down will be a characteristic that all businesses have to deal with, and they are also dealing with. So that's on the inflat

Q

Great set of results. Thanks for giving me the opportunity. I have 3 questions. One is, if you could call out what is the sort of investment which is done on Gold in your view, and in my estimate it's somewhere in the high single-digit number. What is the sort of investment up here? And where do you think this will normalize? So, would this number be INR 3 or 4. I'm just trying to understand, on a per order basis, whenever it is, FY25, FY26, I'm just trying to understand where does this number stack up at a steady state?

Akshant Goyal

Manish, hard to say that at this point. I think in our business, there are pockets where we have to invest at different periods of time and then sort of adapt depending on how the market is changing, how the consumer habits are changing and how the competition is behaving. So, at this point, I won't be able to comment on a specific guidance on how much are we investing here and where that is likely to move going forward. Okay and any thoughts on this platform fee, which is being levered by the peer set, do we want to roll out, have we tried in certain micro markets, just your thoughts around t

Q

Yes, thanks for the opportunity, congrats once again to the entire team. I just had 2 questions. One is in the presser that you did highlight about Blinkit Adjusted EBITDA breakeven in the next 4 quarters. Would it be possible for you to share the broad levers? Or how are you really looking at it, which other broad levers can really move towards profitability? And also, in the past, you did highlight when food delivery used to be a loss-making business about how you think about food delivery business from an Adjusted EBITDA standpoint to reach to about 3% to 5% Adjusted EBITDA margin over the

Akshant Goyal

On the ad sales bit, to answer your question, I think it's largely been volume-led. We haven't taken really much of a price increase during this time. Got it. So that lever does remain with you at some point of time. And just one more final question, if I may squeeze in. Is it possible for you to call out a range of what has been the drag because of Zomato Gold in this quarter? No Niket, I would not want to share that information as it's sensitive from a competitive standpoint. No worries, best of luck and congrats once again, thank you.