IndiaMART InterMESH, a B2B marketplace, experienced a 27.4% decrease in its combined net profit, totaling INR 82 crore in the third quarter (Q3) of the financial year 2023-24 (FY24). This decline, compared to the INR 112.8 crore reported in the same quarter of the previous year, can be attributed to subdued growth in the current period.
Nevertheless, IndiaMART witnessed an 18.8% quarter-on-quarter (QoQ) rise in net profit, reaching INR 69 crore in the preceding quarter, Q2 FY24.
The operational revenue surged by 21%, reaching INR 305 crore in Q3 FY24 compared to INR 251 crore in the corresponding quarter of the previous year. Nevertheless, the quarter-on-quarter (QoQ) growth was modest, standing at 3.4% from INR 295 crore in Q2 FY24.
It’s important to highlight that IndiaMART exhibited a robust financial performance in Q3 FY23, achieving a 61% year-on-year (YoY) increase in net profit and a 34% growth in operating revenue.
In the reported quarter, the company observed a modest 9% year-on-year (YoY) increase in paying subscription suppliers, reaching 2.12 lakh. This growth was attributed to the addition of 1,826 such suppliers during the period.
IndiaMART’s Indian supplier storefronts recorded a 5% year-on-year increase, reaching 7.8 million in the third quarter of fiscal year 2024. Concurrently, the platform’s traffic also grew by 9% year-on-year, totaling 272 million. Notably, unique business inquiries showed a 4% rise, reaching 23 million in the same Q3 FY24 period.
Dinesh Agarwal, the CEO of IndiaMART, expressed that the third quarter saw the company achieving moderate growth in both revenue and deferred revenue, along with maintaining robust operating margins. He remains optimistic about the sustained profitability and positive cash flows, citing the company’s strategic utilization of market opportunities amid the growing digital adoption by businesses.
“We continue to focus on enhancing customer experience on our platform and drive deeper penetration of paying customers across cities, enabling businesses to grow online,” Agarwal added.
Meanwhile, IndiaMART witnessed a nearly 20% surge in expenses during the reported quarter, with spending reaching INR 230 Cr compared to the INR 192 Cr total expenses in Q3 FY23.
The largest portion of expenses was attributed to employee benefit costs, experiencing a 27.9% year-on-year increase to reach INR 138.5 Cr in Q3 FY24.
After the release of quarterly earnings, IndiaMART’s shares concluded Thursday’s (January 18) trading session with a 3.4% decline, closing at INR 2,511 on the BSE.
Continue Exploring: IndiaMART InterMESH records 2% growth in Q2 FY24 earnings, despite 17% net profit decline; operational revenue surges by 22%