Shares of Indiamart Intermesh, an online B2B marketplace, rose 4.88 percent in Friday's trade after the company reported a 60.68 percent YoY rise in its consolidated net profit to ₹112.8 crore for the December quarter. The firm posted a net profit of ₹68 crore in the preceding quarter and ₹47 crore in the first quarter of FY23.
The revenue from operations during the third quarter of FY23 rose 33.51 percent to Rs.251 crore from Rs.188 crore in Q3FY22. The firm's EBITDA fell to Rs.61 crore in Q3FY23 from Rs. 76 crore in the year-ago period, a drop of 19.73 percent YoY. The EBITDA margin during the quarter improved by 100 bps QoQ to 24 percent.
Following the development, the stock got off to a great start in Friday's trade at ₹4,500 apiece, and it continued to surge in early trade to hit an intraday high of ₹4,698.35. But later, the stock erased those early gains and is currently trading at ₹4,530, up by 1.19 percent.
Commenting on the results, Indiamart Intermesh CEO Dinesh Agarwal said it was led by growth in revenue, deferred revenue, paying subscription suppliers, and cash flow from operations with healthy margins.
"Our strong balance sheet and sustainable cashflows enable us to continue investing in strengthening our manpower across the organisation as well as investments in strategic areas," he said.
Agarwal added that the company will continue to invest behind the growth and focus on further strengthening value proposition to capitalise on emerging growth tailwinds due to accelerated digital adoption by businesses.
Between January and March of last year, the stock crashed nearly 40 percent, tumbling from ₹6,736 apiece to ₹4,081. However, over the last three years, the stock has gained 112.8 percent.
The stock made a successful market debut on July 4, 2019, at ₹1,180 apiece, compared to the issue price of ₹973. On the first day, the stock closed 33 percent higher than the IPO price.
Within just 17 months of its listing, the stock had zoomed 661 percent to reach an all-time high of ₹9,910. At current levels, the stock is up 365 percent from the issue price.
IndiaMART is India’s online B2B marketplace, connecting buyers with suppliers. With a 60 percent market share of the online B2B classified space in India, the company focuses on providing a platform to small & medium enterprises (SMEs), large enterprises as well as individuals.
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