IndiaMART InterMESH (INDIAMART) Q4 18/19 earnings summary

Executive summary

• FY19 consolidated revenue from operations grew 24% YoY to ₹5,074 Mn; EBITDA reached ₹823 Mn at a 16% margin, up 77% YoY.

• The marketplace connected 5.5 Mn registered suppliers and 82.7 Mn+ buyers, delivering 448.9 Mn annual business enquiries across 138,000 categories.

• FY19 ended with a return to profitability on both bases: consolidated net income was ₹200.44 Mn versus ₹547.59 Mn in FY18, while standalone net income was ₹125.93 Mn versus a ₹724.41 Mn loss.

Financial highlights

• Consolidated revenue from operations rose to ₹5,074.17 Mn from ₹4,105.08 Mn; total income was ₹5,483.89 Mn versus ₹4,295.26 Mn.

• Consolidated profit before tax was ₹539.23 Mn versus a ₹600.97 Mn loss; net income was ₹200.44 Mn versus ₹547.59 Mn, and EPS was ₹7.75 versus ₹28.60.

• Standalone revenue grew 23.23% YoY to ₹4,972.75 Mn; net income was ₹125.93 Mn versus a ₹724.41 Mn loss, with EPS of ₹4.87 versus a ₹37.83 loss.

• Consolidated cash generated from operations was ₹2,551 Mn, up 42%; cash and investments were ₹6,852 Mn, up 77%, and deferred revenue was ₹5,860 Mn, up 38%.

• Adjusted for the prior-year ₹1,175.55 Mn goodwill impairment and lower fair-value losses on share buyback obligations, FY19 reported profit improved from FY18's loss; FY19 included a ₹652.63 Mn share buyback fair-value loss.

Outlook and guidance

• Strategic priorities included expanding the buyer-supplier network, strengthening technology, improving user experience, and exploring fintech and SaaS solutions.

• FY19 activation fees received in advance are recognised over an estimated 27-month customer relationship period; the estimate is reviewed at each reporting date.

• Ind AS 116 leases became applicable from FY20; evaluation of its financial statement impact was underway.