B2B marketplace IndiaMART InterMESH reported a 27.4% decline in its consolidated net profit to INR 82 Cr in the December quarter (Q3) of the financial year 2023-24 (FY24) from INR 112.8 Cr in the corresponding quarter of the previous year, hurt by a muted growth compared to last year.
However, IndiaMART’s net profit increased 18.8% quarter-on-quarter (QoQ) from INR 69 Cr posted in the previous quarter – Q2 FY24.
Operating revenue jumped 21% to INR 305 Cr in Q3 FY24 from INR 251 Cr in the year-ago quarter. However, this was a mere 3.4% growth QoQ from INR 295 Cr in Q2 FY24.
It is pertinent to note that IndiaMART had delivered a solid financial performance in Q3 FY23, with a 61% YoY jump in net profit and a 34% rise in operating revenue.
The company’s paying subscription suppliers also saw a mere 9% YoY growth to 2.12 Lakh in the reported quarter as it added 1,826 such suppliers during the period.
IndiaMART’s Indian supplier storefronts saw a 5% increase YoY to 78 Lakh while its traffic grew 9% YoY to 27.2 Cr. Unique business enquiries rose 4% to 2.3 Cr in Q3 FY24.
Dinesh Agarwal, CEO of IndiaMART, said that the company reported modest growth in revenue, deferred revenue, and healthy operating margins in the third quarter and remains confident of sustained profitable growth and cash flows as it leverages market opportunities with increasing digital adoption by businesses.
“We continue to focus on enhancing customer experience on our platform and drive deeper penetration of paying customers across cities, enabling businesses to grow online,” Agarwal added.
Meanwhile, IndiaMART spent INR 230 Cr during the reported quarter, which was almost a 20% jump from INR 192 Cr of total expenses in Q3 FY23.
Employee benefit expenses accounted for the biggest chunk of expenses, rising 27.9% YoY to INR 138.5 Cr in Q3 FY24.
Following the quarterly earnings announcement, shares of IndiaMART ended Thursday’s (January 18) trading session 3.4% lower at INR 2,511 on the BSE.
The post IndiaMART Q3: Profit Declines 27% YoY To INR 82 Cr, Sales Rise 21% appeared first on Inc42 Media.
