Indiamart posts 29% rise in net profit at Rs 80 cr in third quarter

B2B e-commerce firm Indiamart Intermesh on Monday posted a 29 per cent rise in its consolidated net profit to Rs 80 crore for the third quarter ended December 31, 2020.

The company had reported a net profit of Rs 62 crore in the year-ago period, a regulatory filing said.

Its revenue from operations stood at Rs 174 crore in the third quarter of 2020-21, up 5 per cent from Rs 165 crore in the corresponding period last fiscal, it added.

It attributed this growth to "marginal improvement in realisation of existing customers and increase in number of paying subscription suppliers".

Indiamart Intermesh Chief Executive Officer Dinesh Agarwal said, "We are pleased to report a resilient financial performance this quarter with steady recovery in the business parameters while maintaining healthy margins and cashflows."

He added that the firm sees improvement in overall demand environment and business activity. "Our strong value proposition, customer relationships and balance sheet make us confident of supporting businesses in their transformation to online."

He added that with the emerging accelerated digitisation needs of businesses, the company is looking forward to kick-starting the new year on an optimistic note.

The company said its consolidated deferred revenue declined from Rs 649 crore in the third quarter of FY20 to Rs 633 crore in the December quarter of FY21.

On a sequential basis, the net profit was higher by 15 per cent from Rs 70 crore, while revenue was higher by 6 per cent from Rs 163 crore in the September 2020 quarter.