IndiaMart InterMesh Stock Stages A Comeback After 10% Fall
Shares of IndiaMart InterMesh Ltd. fell to their lowest in two months in early trade but soon pared almost all of the losses after the online marketplace for business products saw its quarterly profit and revenue rise, aided by an increase in paying subscription suppliers and number of visits amid the pandemic-fuelled e-commerce boom.
Net profit stood at Rs 69.8 crore in the July-September period compared with Rs 8.7 crore a year ago, according to an exchange filing, aided by lower expenses and taxes. That compares with the Rs 57.8-crore consensus estimate of analysts tracked by Bloomberg.
Revenue rose 4% year-on-year to Rs 163.2 crore, in line with the Rs 165-crore forecast. That came as realisation of existing customers improved and the number of paying subscription suppliers increased, the company said in its post-earnings statement.
Other highlights (year-on-year)
- Earnings before interest, tax, depreciation and amortisation more than doubled to Rs 81.7 crore.
- Ebitda margin expanded to 50.1% from 23.2% a year ago, aided by cost optimisation initiatives undertaken over the last six months. The company, however, termed these as ‘temporary’ measures.
“Our investments in the product over the last couple of years has strengthened the value proposition for our customers and hold us in good stead to leverage the emerging market opportunities in these tough times,” Dinesh Agarwal, chief executive officer at IndiaMart InterMesh, was quoted as saying in a press release.
Operational highlights (year-on-year)
- Paying subscription suppliers rose 3% to 1.41 lakh
- Live products listing rose 9% to 6.9 crore
- Annualised revenue per paying subscriber rose 3% to Rs 45,800
- Traffic, or the number of visits done on the website and mobile application of the company, rose 32% to 25.9 crore. Nearly 82% of the overall traffic is through mobile.
- Business enquiries rose 42% to 17.5 crore
- Unique business enquiries rose 40% to 2.8 crore
Of the eight analysts tracking IndiaMart InterMesh, five have a ‘buy’ rating and two recommend a ‘hold’. Only Spark Capital suggests a ‘sell’. The average of Bloomberg consensus 12-month target prices implies an upside of 13.6%.
Shares recovered after falling as much as 10% to end 0.4% lower at Rs 5,000 apiece.