IndiaMART InterMESH (INDIAMART) Q1 24/25 earnings summary

Executive summary

• Consolidated revenue from operations reached ₹3,313 million (INR 331 crore), up 17% year-over-year, with net profit at ₹1,139 million (INR 114 crore), a 37% increase, and EBITDA margin at 36%.

• Collections from customers grew 14% year-over-year to ₹366 crore (consolidated), with standalone collections at ₹341 crore, up 15%.

• Unique business inquiries increased 15% year-over-year to 25 million, and total paying subscribers reached 216,000, with a net addition of 1,519 suppliers.

• Acquired a 10% stake in Baldor Technologies (IDfy) and increased stake in Simply Vyapar Apps to 28.7% to enhance digital business solutions.

• The Board approved a composite scheme of amalgamation among wholly owned subsidiaries, with NCLT proceedings ongoing.

Financial highlights

• Deferred revenue grew 23% year-over-year to ₹1,474 crore (consolidated); standalone deferred revenue increased 22% to ₹1,421 crore.

• Standalone revenue from operations was ₹350 crore, up 18% year-over-year; standalone EBITDA stood at ₹117 crore with a margin of 37%.

• Busy Infotech posted revenue of ₹15.5 crore (up 15% YoY), net profit of ₹3.0 crore (up 17% YoY), and EBITDA margin of 7%.

• Cash generated from operating activities was ₹136 crore (consolidated), 37% of collections, up 50% year-over-year.

• Cash and treasury balance stood at ₹2,319 crore as of June 30, 2024.

Outlook and guidance

• Management expects EBITDA margin to normalize to 33-34% in coming quarters as customer acquisition costs rise.

• No commitment on net subscriber additions for FY25 due to persistent churn; focus remains on quarter-by-quarter progress.

• Strategic focus on expanding buyer and supplier network, commerce enablement, fintech, and SaaS business enablement.

• Continued investment in technology, customer experience, retention, and deeper penetration in focus cities.