IndiaMART InterMESH (INDIAMART) Q4 19/20 earnings summary

Executive summary

• FY20 delivered 26% consolidated revenue growth, higher profitability and strong cash generation, while COVID-19 lockdown created near-term demand and renewal uncertainty.

• Marketplace scale reached 102 million registered buyers, 6 million supplier storefronts and 147,000 paying suppliers as of March 31, 2020.

Financial highlights

• Consolidated revenue from operations was ₹6,388.54 million, up 26% YoY; total income was ₹7,074.45 million.

• Deferred revenue increased 17% YoY to ₹6,853 million, supporting future revenue visibility.

• Consolidated EBITDA was ₹1,689 million and EBIT ₹1,478 million; net profit was ₹1,473.82 million versus ₹200.44 million in FY19.

• Cash flow from operations was ₹2,606 million; cash and investments reached ₹9,307 million, up 36% YoY.

Outlook and guidance

• FY20-21 activity was expected to remain subdued due to COVID-19, with eventual recovery anticipated as trade and transactions continue shifting online.

• Priorities include customer retention and cost optimisation, growing the marketplace, attracting larger suppliers and brands, and improving buyer and supplier experience.

• Plans included pursuing synergistic investments or acquisitions and fintech or SaaS partnerships; further investment in mobile capabilities was also planned.