IndiaMART InterMESH slipped 3.45% to Rs 4108 after the company reported 47% drop in consolidated net profit to Rs 47 crore despite a 24% rise in revenue from operations to Rs 225 crore in Q1 FY23 over Q1 FY22.
The growth in revenue was primarily driven by 23% increase in number of paying subscription suppliers and addition of Rs 10.53 crore revenue from accounting software services. Consolidated deferred revenue increased by 34% YoY to Rs 961 crore as on 30 June 2022.
Total expenses jumped 66% YoY to Rs 153 crore in the first quarter due to higher manpower cost (up 58% YoY), higher cost of outsourced sales (up 140% YoY) and higher other operating expenses (up 46% YoY).
Expenses for the quarter also included one-time cost of Rs 4.07 crore related to acquisition of Busy Infotech and Finlite Technologies, which have been consummated during the quarter.
EBITDA fell by 28% to Rs 64 crore in Q1 FY23 from Rs 89 crore in Q1 FY22. EBITDA margin was 29% in Q1 FY23 as against 49% in Q1 FY22.
Cash generated from operating activities increased by 22% YoY to Rs 75 crore during the quarter. Collections from customers improved by 49% to Rs 254 crore in the first quarter as compared with the same period last year.
IndiaMART registered traffic of 257 million and total business enquiries of 115 million during Q1 FY23. Supplier Storefronts grew to 7.2 million, an increase of 10% YoY and paying subscription suppliers grew by 23% YoY to 179,260 with a net addition of 9,936 paying subscription suppliers during the quarter.
Dinesh Agarwal, chief executive officer, said: We are starting the fiscal year on a positive note as the quarter registered modest all-round profitable growth and improvement in overall demand environment.
We continue to make investments in strengthening our value proposition as well as building the organization to further accelerate digital transformation of businesses. We look forward to capitalizing the emerging opportunities arising from the increasing adoption of the internet on the back of investments made in the recent quarters as well as a strong balance sheet.
IndiaMART is India's largest online B2B marketplace for business products and services.
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