IndiaMART InterMESH tanks 8% on weak operational performance in March qtr

Shares of IndiaMART InterMESH tanked 8.4 per cent to Rs 8,055 during Friday's intra-day deals on the BSE on weak operational performance in March quarter of FY21. The B2B e-commerce firm's total income increased just 1 per cent to Rs 190 crore during the reported quarter from Rs 187 crore in the corresponding period of 2019-20. For the full fiscal of 2020-21, its total income grew by 7 per cent to Rs 756 crore from Rs 707 crore in the preceding fiscal.

"During these trying times, we remain committed to employee safety and customer centric approach helping businesses grow through on-line transformation," Indiamart Intermesh CEO Dinesh Agarwal said in a statement.

The bottomline, however, showed healthy growth. It's net profit jumped 26 per cent YoY to Rs 56 crore compared with Rs 44 crore in the previous year period. For the year ended March 31, 2021, IndiaMart InterMesh recorded an 89.82 per cent jump in consolidated net profit to Rs 279.80 crore as against Rs 147.40 crore in FY20. Revenue from operations gained 4.80 per cent to Rs 669.60 crore in FY21 over FY20.

Consolidated profit before tax (PBT), meanwhile, soared 45.75 per cent to Rs 89.20 crore in Q4FY21 as against Rs 61.20 crore in Q4FY20.

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. At 10:48 AM, the shares were trading 7.7 per cent lower at Rs 8,112 apiece as against a 0.67 per cent decline in the S&P Sensex.

In another development, the company announced on Wednesday that it will acquire stake in Gurugram-based Shipway Technology and invest more in a Kolkata firm. The company, through its wholly owned subsidiary Tradezeal Online, will acquire 26 per cent stake in Shipway Technology for Rs 18.2 crore. Shipway Technology Private is engaged in the business of developing SaaS based solutions which allow small businesses to automate their shipping operations.