B2B marketplace IndiaMART InterMESH posted a muted 2% growth in its consolidated net profit at INR 69 Cr during the second quarter (Q2) of the financial year 2023-24 (FY24) from INR 68 Cr in Q2 FY23.
However, net profit tanked 17% on a quarter-on-quarter (QoQ) basis from INR 83 Cr, hurt largely by heavy investments in manpower, technology, sales and servicing.
Meanwhile, operating revenue soared 22% to INR 295 Cr in the quarter ended September 2023 from INR 241 Cr in the year-ago quarter. Sequentially, revenue from operations rose 4% from INR 282 Cr.
“We are happy to report continued growth in revenue, deferred revenue, and healthy operating margins in this quarter… With the rising internet adoption and on the back of healthy cash flows, we are confident of the long-term growth and sustained value creation for all our stakeholders,” said IndiaMART cofounder and chief executive officer (CEO) Dinesh Agarwal.
The company’s expenses grew 22.5% year-on-year (YoY) to INR 225 Cr in Q2 FY24. Employee benefit costs accounted for the biggest chunk of the expenditure at INR 132.4 Cr in Q2 FY24, followed by ‘other expenses’ at INR 82.3 Cr.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 19% YoY to INR 80 Cr during the period under review.
The B2B marketplace giant registered a total traffic of 28.8 Cr and 2.4 Cr unique business enquiries in Q2 FY24, up 10% and 6%, respectively. Supplier storefronts on IndiaMART jumped to 77 Lakh while paying subscription suppliers zoomed to 2.09 Lakh at the end of September 2023.
The company clocked an annualised revenue per paying subscriber of INR 53,525, while live listings on the platform soared to 10.2 Cr in Q2 FY24.
IndiaMART’s consolidated cash and investments balance stood at INR 1,910 Cr at the end of Q2 FY24.
Shares of the company ended Friday’s trading session 4.06% higher at INR 2,766.20 on the BSE.
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