IndiaMART InterMESH advances after Q2 numbers

IndiaMART InterMESH rose 0.95% to Rs 2,050.20 after consolidated net profit fell 57.4% to Rs 8.70 crore on a 27.8% surge in net sales to Rs 156.60 crore in Q2 September 2019 over Q2 September 2018.

The result was announced after trading hours yesterday, 22 October 2019.

Total revenue grew primarily due to increase in number of paying subscribers as well as higher realization from existing customers. Consolidated deferred revenue grew by 28% to Rs 631 crore in Q2 September 2019 over Q2 September 2018, leading to much better visibility for revenues in future.

Consolidated EBITDA jumped 61% to Rs 36 crore in Q2 September 2019 as against Rs 23 crore in Q2 September 2018. Consolidated EBITDA margin grew to 23% during Q2 September 2019 from 18% in Q2 September 2018.

The tax expense for the quarter was at Rs 42 crore which included a one-time impact of Rs 31.4 crore related to change in tax rate and law as the company has opted to move to 25% tax regime as per the option given in Taxation Amendment Ordinance, 2019. Due to which, the consolidated net profit for the period stood at Rs 9 crore.

The firm delivered a consolidated cash flow from operations of Rs 42 crore and cash & investments worth Rs 780 crore as on 30 September 2019 as compared to Rs 503 crore as on 30 September 2018, registering a jump of 55% year-on-year.

Total business enquiries delivered registered a growth of 4% to 12.3 crore in Q2 September 2019 from 11.8 crore in Q2 September 2018.

Cash and investment stood at Rs 780 crore in Q2 September 2019 compared with Rs 746 crore in Q1 June 2019 and Rs 503 crore in Q2 September 2018.

Commenting on the results, Dinesh Agarwal, the CEO of IndiaMART InterMESH, has said that, "We are pleased to report results for the quarter ending September 2019 on expected lines, showcasing continued growth. The results are reflection of our well diversified business model and unique value proposition that we have developed over the years. Going forward, as we continue to steer ourselves in the challenging macro environment, we remain cautiously optimistic of maintaining the growth momentum."

Meanwhile, S&P BSE Sensex was up 189.30 points or 0.49% at 39,153.14.

On BSE, 3,131 shares were traded in IndiaMART InterMESH counter, compared to a 2-week average of 12,000 shares. The stock hit an intraday high of Rs 2,094.55 and an intraday low of Rs 2,021. It hit a 52-week high of Rs 2,310 on 10 October 2019 and a 52-week low of Rs 952 on 28 August 2019.

IndiaMART InterMESH connects buyers with suppliers. The firm's online channel focuses on providing a platform to small and medium enterprises (SMEs), large enterprises, as well as individuals.

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