IndiaMART InterMESH advances after Q1 PAT rises 19% to Rs 88 cr

IndiaMART InterMESH rose 2.27% to Rs 7,170.05 after the B2B company's consolidated net profit jumped 18.62% to Rs 87.90 crore on a 18.61% increase in revenue from operations to Rs 181.60 crore in Q1 June 2021 (Q1 FY22) over Q1 June 2020 (Q1 FY21).

Total revenue grew due to improvement in realization from existing customers and increase in number of paying subscription suppliers. The consolidated deferred revenue increased to Rs 715 crore in Q1 FY22 from Rs 628 crore in Q1 FY21.

Consolidated profit before tax surged 11.45% to Rs 111.90 crore in Q1 FY22 as against Rs 100.40 crore in Q1 FY21.

Consolidated EBITDA grew 21% to Rs 89 crore in Q1 FY22 as against Rs 73 crore in Q1 FY21. EBITDA margin improved to 49% during the quarter as compared to 48% during Q1 June 2020. Profit margin stood at 42% in Q1 June 2021 over 40% in Q1 June 2020.

The consolidated cash flow from operations for the quarter was at Rs 61 crore, cash and investments balance stood at Rs 2,421 crore as on 30 June 2021 compared with Rs 954 crore on 30 June 2020, recording an increase of 154% Y-o-Y (year-on-year).

IndiaMART InterMESH sustained buyer traffic of 268 million in Q1 FY22 and business enquiries of 162 million in Q1 FY22 during the challenging second wave of COVID-19. Paying subscription suppliers grew to 1,46,000, registering a growth of 9% Y-o-Y.

Commenting on the Q1 performance, Dinesh Agarwal, the chief executive officer (CEO) of IndiaMART InterMESH, has said that: "We have been able to navigate the disruptions caused by the second wave of COVID-19, much better than the last year and have sustained a profitable growth in this quarter. Our focus had been to continue supporting customers as well as employees in the times that had been personally challenging to many. As the overall demand environment improves, because of our strong network effect, financial position and investments in strengthening the value proposition, we will continue supporting businesses transforming themselves to online and capitalize on the new growth opportunities arising from the accelerated adoption of the internet."

The company has fixed Tuesday, 24 August 2021 as the record date for the purpose of determining the names of members eligible for final dividend of Rs 15 per equity share of face value of Rs 10 each for the FY 2020-21.

IndiaMART is India's largest online B2B marketplace for business products and services. The company makes it easier to do business by connecting buyers and sellers across product categories and geographies in India through business enablement solutions.

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