According to Kotak Securities, Eternal’s revenue is likely to grow by 58% from last year to ₹6,682 crore, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) is likely to fall by 26.5% from the year-ago period to ₹130.2 crore. On a sequential basis, Eternal’s EBITDA is likely to decline by 7% sequentially.
Net profit for the period is likely to see a drop of 87% from the year-ago quarter to ₹30.9 crore, according to the Kotak Securities estimate.
The brokerage mentioned in its note that Gross Order Value in the Food Delivery business is likely to increase by 18% from last year, while margins are likely to remain flat from the March quarter.
On the quick commerce front, Blinkit’s Gross Order Value (GOV) may grow by 124% on a year-on-year basis, while loss on the EBITDA front may accelerate due to swift store expansion.
The company, at the end of the March quarter, had highlighted that competition is likely to intensify in the near-term and that they will aggressively look to grow market share and not let short-term profitability goals come in the way.
Shares of Eternal are trading 3.1% higher on Monday at ₹265.1 ahead of its results. The stock has risen 25% so far on a year-to-date basis.
