IndiaMART InterMESH, a B2B marketplace, recorded a modest 2% increase in its combined net earnings, reaching INR 69 Cr in the second quarter (Q2) of the financial year 2023-24 (FY24), up from INR 68 Cr in Q2 FY23.
Nonetheless, the net profit plummeted by 17% on a quarter-on-quarter (QoQ) comparison, sliding from INR 83 Cr. This decline was primarily attributed to substantial investments in workforce, technology, sales, and customer service.
At the same time, operational revenue surged by 22% to INR 295 Cr in the quarter ending September 2023, compared to INR 241 Cr in the corresponding quarter of the previous year. In a sequential comparison, operational revenue increased by 4% from INR 282 Cr.
“We are happy to report continued growth in revenue, deferred revenue, and healthy operating margins in this quarter… With the rising internet adoption and on the back of healthy cash flows, we are confident of the long-term growth and sustained value creation for all our stakeholders,” said IndiaMART cofounder and chief executive officer (CEO) Dinesh Agarwal.
The company witnessed a 22.5% year-on-year (YoY) increase in expenses, totaling INR 225 Cr during Q2 FY24. The most significant portion of these expenses was allocated to employee benefits, amounting to INR 132.4 Cr in Q2 FY24, followed by ‘other expenses’ at INR 82.3 Cr.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 19% year-on-year (YoY), reaching INR 80 Cr during the period being examined.
The prominent B2B marketplace recorded a total traffic of 28.8 Cr and 2.4 Cr unique business inquiries in Q2 FY24, reflecting respective increases of 10% and 6%. The number of supplier storefronts on IndiaMART surged to 77 Lakh, while the count of paying subscription suppliers reached 2.09 Lakh by the end of September 2023.
The company achieved an annualized revenue per paying subscriber of INR 53,525, and the number of live listings on the platform reached 10.2 Cr in Q2 FY24.
IndiaMART’s combined cash and investment holdings amounted to INR 1,910 Cr by the conclusion of Q2 FY24.
The company’s shares closed Friday’s trading session with a 4.06% gain, reaching INR 2,766.20 on the BSE.