ADVERTISEMENT

IndiaMart InterMesh - Weaker-Than-Expected Q3, But Business Fundamentals Intact: Motilal Oswal

IndiaMart InterMesh - Weaker-Than-Expected Q3, But Business Fundamentals Intact: Motilal Oswal

A person scrolls on a mobile phone while shopping online. (Photographer: Xaume Olleros/Bloomberg)
A person scrolls on a mobile phone while shopping online. (Photographer: Xaume Olleros/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

IndiaMart InterMesh Ltd.’s Q3 FY22 performance was weaker than expected led by lower-than-anticipated revenue growth (at 8.4% YoY) and paid suppliers.

Moreover, Ebitda margin (at 41.9%; down 370 basis points QoQ) contracted as employee cost shot up 25% YoY due to wage hikes and increased onboarding, while average revenue per user dipped 0.8% QoQ owing to higher share of suppliers within the lower value package, as business normalised.

Conversely, collections remained encouraging at up 25% YoY, suggesting good visibility on FY23 revenue growth. Similarly, deferred revenue also increased 25% YoY, which should support 20% plus revenue growth in FY23.

With business returning to pre-Covid-19 spending levels, and along with continued supply-side squeeze, IndiaMart’s management anticipates Ebitda margin to stay compressed in Q4 as well as in FY23.

Click on the attachment to read the full report:

Motilal Oswal IndiaMart InterMesh Q3 Review.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.