IndiaMART’s paying subscription suppliers grew 24% YoY to 1,94,355, with a net addition of 6,263 during the quarter
The company saw a 34% YoY increase in its operating revenue to INR 251 Cr in Q3 FY23 from INR 188 Cr in the year-ago quarter
Total expenses stood at INR 192 Cr during the period, 68% more than INR 114 Cr in Q3 FY22
B2B marketplace IndiaMART InterMESH reported a 61% year-on-year (YoY) increase in its consolidated net profit to INR 113 Cr in the December quarter (Q3) of the financial year 2022-23 (FY23), partially led by an increase in paying subscription suppliers.
The company’s net profit stood at INR 70 Cr in the same quarter last year. On a sequential basis, its profit grew over 65% from 68.4 Cr in Q2 FY23.
Meanwhile, IndiaMART saw an almost 34% increase in its operating revenue to INR 251 Cr in Q3 FY23 from INR 188 Cr in the same quarter last year.
“We are pleased with the growth in revenue, deferred revenue, paying subscription suppliers and cash flow from operations with healthy margins,” said Dinesh Agarwal, CEO of IndiaMART, in a statement.
The company’s paying subscription suppliers grew 24% YoY to 1,94,355, with a net addition of 6,263 during the quarter. Its supplier storefronts rose 6% YoY to 7.4 Mn.
Besides, an addition of INR 10 Cr revenue from accounting software services added to the growth during the quarter.
IndiaMART’s total revenue stood at INR 354 Cr in Q3 FY23, up 68% YoY.
Founded in 1996 by Brijesh Agrawal and Dinesh Agarwal, IndiaMART’s online B2B marketplace operates at the intersection of traditional and digital supply chain management. The platform enables ease of doing business by connecting buyers and sellers across product categories and geographies in India through business enablement solutions.
IndiaMART spent INR 192 Cr in total expenses during the period, 68% more than INR 114 Cr in Q3 FY22. Employee benefit expenses comprised the biggest chunk of the company’s total expenses.
Its employee benefit expenses surged almost 67% YoY to INR 108 Cr in Q3 FY23, contributing more than 56% to the total expenses.
Meanwhile, IndiaMART’s outsourced sales cost jumped 88% to INR 32 Cr during the quarter under review.
With a strong growth margin, IndiaMART hinted at spending more on hiring and other strategic areas. “Our strong balance sheet and sustainable cash flows enable us to continue investing in strengthening our manpower across the organisation as well as investments in strategic areas,” Agarwal said.
In November 2022, the company invested about INR 15.1 Cr to acquire a 7.96% stake in SaaS-based end-to-end retail intelligence platform Bizom. In March 2022, IndiaMART announced acquiring a 51% stake in SaaS firm Livekeeping for INR 45.98 Cr.
“We will continue to invest behind growth and focus on further strengthening our value proposition to leverage the emerging growth tailwinds due to accelerated digital adoption by businesses,” he added.
IndiaMART registered 250 Mn traffic and total business enquiries of 119 Mn during Q3 FY23. Its consolidated cash flow from operations stood at INR 115 Cr for the quarter. Meanwhile, the company’s cash and Investments balance stood at INR 2,108 Cr as on December 31, 2022.
IndiaMART is one of the few new-age tech startups whose market valuation and share price is currently more than what it was during the listing on stock exchanges. Its shares ended Thursday’s session at INR 4,476.7, down 0.7% on the BSE.