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IndiaMART climbs after Q3 PAT jumps 61% YoY; other income spurts 367%

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Capital Market
Last Updated : Jan 20 2023 | 9:50 AM IST

IndiaMART InterMESH rose 3.98% to Rs 4654.75 after the company's consolidated net profit jumped 61% to Rs 113 crore on 34% rise in net sales to Rs 251 crore in Q3 December 2022 over Q3 December 2021.

The revenue growth was primarily driven by 24% increase in number of paying subscription suppliers and addition of Rs 10 crore revenue from accounting software services. Consolidated deferred revenue increased by 29% YoY to Rs 1,015 crore as on 31 December 2022.

The company said it continued making growth investments in manpower, product and technology, sales and servicing resulting into growth in revenue and paying subscription suppliers.

On a consolidated basis, profit before tax (PBT) rose 63% year-on-year to Rs 152 crore in Q3 December 2022.

The other income surged 367% YoY to Rs 102 crore on primarily due to one-time realized and unrealized gain of Rs 67 crore on measurement and sale of investment in other entities.

EBITDA was Rs 70 crore (down 11% YoY). EBITDA margin for Q3 FY23 stood at 28%, lower than 42% in Q3 FY22. EBIT for the period was Rs 62 crore (down 19% YoY) with EBIT margin of 25% in Q3 FY23 as against 40% in Q3 FY22.

Total expenses climbed 60% YoY to Rs 174 crore. Manpower cost jumped 58% while outsourced sales cost surged 83%.

Consolidated cash flow from operations for the quarter was at Rs 115 crore. Cash and Investments balance stood at Rs 2,108 crore as on 31 December 2022.

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IndiaMART registered traffic of 250 million and total business enquiries of 119 million during Q3 FY23. Supplier Storefronts grew to 7.4 million, an increase of 6% YoY and paying subscription suppliers grew by 24% YoY to 194,355 with a net addition of 6,263 paying subscription suppliers during the quarter.

Commenting on the performance, Dinesh Agarwal, chief executive officer, said: "We are pleased with the growth in revenue, deferred revenue, paying subscription suppliers and cash flow from operations with healthy margins. Our strong balance sheet and sustainable cashflows enable us to continue investing in strengthening our manpower across the organization as well as investments in strategic areas. We will continue to invest behind growth and focus on further strengthening our value proposition to leverage the emerging growth tailwinds due to accelerated digital adoption by businesses."

IndiaMART is India's largest online B2B marketplace for business products and services. IndiaMART makes it easier to do business by connecting buyers and sellers across product categories and geographies in India through business enablement solutions. IndiaMART provides ease and convenience to the buyers by offering a wide assortment of products and a responsive seller base while offering lead generation, lead management and payment solutions to its sellers.

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First Published: Jan 20 2023 | 9:27 AM IST

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