IndiaMART InterMESH Declines as 66% YoY Increase in Spend Hits Bottom Line


IndiaMART InterMESH slipped 3.45% to Rs 4,108 after the company reported a 47% drop in consolidated net profit to Rs 47 crore despite a 24% increase in operating income to Rs 225 crore in Q1 FY23 per compared to Q1 FY22.

The revenue growth was mainly due to the 23% increase in the number of paid subscription providers and the addition of Rs 10.53 crore in revenue from accounting software services. Consolidated deferred revenue increased by 34% year-on-year to Rs 961 crore as of June 30, 2022.

Total expenses jumped 66% YoY to Rs 153m in Q1 due to higher labor costs (up 58% YoY), higher cost of sales (up 140% year-on-year) and higher other operating expenses (up 46% year-on-year).

The expenses for the quarter also included a one-time cost of Rs 4.07 crore related to the acquisition of Busy Infotech and Finlite Technologies, which were consumed 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 versus 49% in Q1 FY22.

Cash generated from operating activities increased by 22% year-on-year to Rs 75 crore in the quarter. Recoveries from customers improved by 49% to Rs 254 crore in the first quarter compared to the same period last year.

IndiaMART saw traffic of 257 million and total business inquiries of 115 million in the first quarter of FY23. Vendor showcases reached 7.2 million, a 10% year-on-year increase annual and paid subscription providers grew 23% year-over-year to 179,260, with a net addition of 9,936 paid subscription providers in the quarter.

Dinesh Agarwal, Managing Director, said, “We are starting the year on a positive note, with the quarter seeing modest overall profitable growth and an improving overall demand environment.

We continue to invest in strengthening our value proposition as well as building the organization to further accelerate digital business transformation. We look forward to taking advantage of emerging opportunities arising from the growing adoption of the Internet thanks to the investments made in recent quarters as well as a strong balance sheet.

IndiaMART is India’s largest online B2B marketplace for commercial products and services.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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