B2B e-commerce firm Indiamart Intermesh posts 12% decline in Q3 net profit

B2B e-commerce firm Indiamart Intermesh on Monday posted a 12.4 per cent decline in consolidated net profit to Rs 70.2 crore in the December 2021 quarter.

The company had registered a net profit of Rs 80.2 crore in the corresponding period of the last fiscal.

Its revenue grew 8.3 per cent to Rs 188.1 crore in the third quarter of FY22 from Rs 173.6 crore in the year-ago period, a regulatory filing said.

Indiamart registered a traffic of 259 million and unique business enquiries of 23 million during the third quarter of FY22. Supplier storefronts grew to 7 million, an increase of 10 per cent year-on-year and with a net addition of 5,833 subscribers during the said quarter, paying subscription suppliers grew to 1.56 lakh.

"We are pleased to report a good financial performance in this quarter with growth in customers and deferred revenue with healthy margins and cash flows. Growing internet adoption strengthens our value proposition of helping businesses transform themselves to do business online," Indiamart Intermesh Chief Executive Officer Dinesh Agarwal said.

He added that on the back of a strong balance sheet and cash flow from operations, the company will continue to invest in its employees and product offerings that create long term value for its shareholders.

Indiamart, through its wholly-owned subsidiary Tradezeal, intends to invest Rs 7.5 crore in Legistify "by subscribing 75,000, 0.0001 per cent Compulsorily Convertible Debentures (CCDs)", Indiamart said in a separate filing.

"The current aggregate shareholding of Tradezeal in Legistify is 11.30 per cent of the share capital. However, post investment shareholding through the subscription of the said CCDs shall depend on the conversion event of the CCDs," it said.

This investment shall be in line with the company's long-term objective of offering various software as a service (SAAS) based solutions for businesses, the filing added.

Legistify - via its flagship product Legistrak - offers a SaaS tool which allows businesses to manage their legal workflows.

Some of the key features of the Legistrak tool include litigation tracking, notices management and legal vendor management. Its turnover stood at Rs 1.73 crore in FY2020.