B2B e-comm platform Indiamart's Q1 net profit rises 19% to Rs 88 cr

B2B e-commerce platform Indiamart Intermesh on Thursday posted a 19 per cent increase in consolidated net profit at Rs 88 crore for the quarter ended June 30, 2021.

The company had posted a net profit of Rs 74 crore in the same period a year ago.

"We have been able to navigate the disruptions caused by the second wave of COVID, much better than the last year and have sustained a profitable growth in this quarter.

"Our focus had been to continue supporting customers as well as employees in the times that had been personally challenging to many," Indiamart Chief Executive Officer Dinesh Agarwal said in a statement.

Revenue from operations rose 19 per cent to Rs 182 crore during the reported period, compared to Rs 153 crore in the corresponding quarter of 2020-21.

"As the overall demand environment improves, because of our strong network effect, financial position and investments in strengthening the value proposition, we will continue supporting businesses transforming themselves to online and capitalize on the new growth opportunities arising from the accelerated adoption of the internet," Agarwal said.

Indiamart also filed a "statement of deviation or variation in utilization of funds raised through QIP by the Company, for the quarter ended June 30, 2021, reviewed by the Audit Committee".

The statement was with respect to the fund utilisation from proceeds of Rs 1,051.2 crore that the company had raised from qualified institutional placement (QIP) on February 22, 2021.

Indiamart's filing said the expenses incurred in relation to QIP amounting to Rs 19 crore have been adjusted from the securities premium account.

"As per the placement document, QIP proceeds are to augment for future growth and expansion. Out of these proceeds, the company has utilized Rs 305 millions towards fresh investments made during the current quarter ended June 30, 2021. The balance amount of QIP's net proceeds remains invested in liquid instruments," the filing said.

Shares of Indiamart closed at Rs 7,010.7 apiece, down by 0.43 per cent, on BSE on Thursday.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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