IndiaMART’s Profit Nearly Doubles To INR 135 Cr In Q2

B2B marketplace IndiaMART InterMESH nearly doubled its consolidated net profit to INR 135.1 Cr in the September quarter of the financial year 2024-25 (Q2 FY25) from INR 69.4 Cr in the year-ago period on the back of strong top line growth and controlled expenses.

On a quarter-on-quarter basis, net profit grew over 18% from INR 114 Cr in the April-June period.

Revenue from operations jumped 18% to INR 347.6 Cr during the quarter under review from INR 294.6 Cr in Q2 FY24. Sequentially, it rose nearly 5% from INR 331.3 Cr.

The company’s EBITDA surged 68% year-on-year (YoY) to INR 135 Cr in Q2. 

IndiaMART said that its collections from customers grew 6% YoY to INR 356 Cr during the quarter under review, which primarily comprised the company’s standalone collections of INR 337 Cr and Busy Infotech’s collections of INR 16 Cr.  

It also registered 28 Mn unique business inquiries in Q2 FY25, registering a 14% YoY growth. Further, its supplier storefronts grew 5% YoY to 8 Mn, while paying suppliers rose 4% YoY to 218K. Annualised revenue per paying supplier increased 14% YoY to INR 61K.

Meanwhile, deferred revenue zoomed 19% YoY to INR 1,483 Cr. This primarily included IndiaMART’s standalone deferred revenue of INR 1,426 Cr and Busy Infotech’s revenue of INR 53 Cr.

In an investor presentation, IndiaMART said that going forward it would focus on its core SME business and keep expanding its buyer and supplier network. To improve customer engagement, the company plans to invest in fintech and accounting and SaaS business enablement.

Zooming Into IndiaMART’s Expenses

IndiaMART saw a marginal decline in its total expenses to INR 223.1 Cr in the reported quarter from INR 225 Cr in the year-ago quarter. 

Employee Benefit Expenses: The company spent INR 147.4 Cr in this bracket in the reported quarter, an increase of 10% from INR 132.4 Cr in the corresponding quarter last year.

Finance Costs: IndiaMART managed to cut its spending under this head by 27% to INR 1.8 Cr in Q2 FY25 from INR 2.3 Cr in the year-ago period.

Other Expenses: The company’s spending in this bracket declined over 4% to INR 65.7 Cr in the reported quarter from INR 68.6 Cr in Q2 FY24.

Ahead of the results announcement on Saturday, shares of IndiaMART ended Friday’s trading session 0.6% lower at INR 3,017.6 apiece on the BSE.

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