IndiaMART InterMESH (INDIAMART) Q4 21/22 earnings summary

Executive summary

• FY22 business activity recovered after a pandemic-affected Q1, with sustained growth from Q2; investments in sales, service, product and technology lifted capacity but pressured margins.

• Collections grew 31.4% to ₹9,344 million, deferred revenue rose 25.0% to ₹9,070 million and paying suppliers increased 11% to 169,324.

• The marketplace served 149 million registered buyers and 7.1 million supplier storefronts, with 97 million unique business enquiries and 550 million enquiries delivered.

Financial highlights

• Consolidated revenue from operations rose 12.5% to ₹7,534.85 million; total income increased to ₹8,656.79 million from ₹7,561.46 million.

• EBITDA declined 6.2% to ₹3,078 million; net profit increased 6.4% to ₹2,976.18 million and EPS rose to ₹97.82 from ₹96.15.

• Cash generated from operations grew 24.7% to ₹4,023 million; customer collections increased 31.4% to ₹9,344 million.

• Other income reached ₹1,121.94 million, including ₹1,030.24 million from fair-value gains and income on investments.

Outlook and guidance

• Outlook remains positive on rising digitisation and internet adoption; plans focus on expanding buyers and suppliers, adding enterprise customers and strengthening engagement and business-enablement services.

• Management expects growth investments to support future opportunities and is hopeful of maintaining healthy growth and margins as their benefits emerge.

• Strategic expansion areas include accounting, logistics, procurement, inventory and order management, HR software and invoice discounting; no quantified FY23 guidance was stated.