Motilal Oswal: IndiaMart Stages Strong Recovery In Q2; Positive Outlook
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Motilal Oswal Report
IndiaMART InterMesh Ltd. posted a strong operational performance in Q2, primarily led by a quicker-than-anticipated rebound in paid suppliers.
Collections were up 73% sequentially, reaching 94% of pre-Covid-19 levels.
The company also showed great resilience in margins, curtailing its operating cost to Rs 815 million, versus an average quarterly run-rate of approximately Rs 1.2 billion.
This led to Ebit margins of 47%, versus 23% in FY20.
While we concur that margins are not sustainable at current levels, overall the company would see benefit from cost optimization and operating leverage.
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