IndiaMART InterMESH zooms 13%, hits new high on strong Q3 results

Topics IndiaMART | Buzzing stocks | Markets

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Shares of IndiaMART InterMESH zoomed 13 per cent to Rs 2,365 on the BSE on Wednesday after the company's consolidated net profit more-than-doubled in December quarter (Q3FY20) to Rs 62 crore. It had reported a profit of Rs 28 crore in the year-ago quarter.

The company’s consolidated total revenue from operations grew 23 per cent year-on-year (YoY) to Rs 165 crore, primarily due to increase in number of paying subscribers as well as higher realization from existing customers. IndiaMART is India's largest online B2B marketplace for business products and services.

EBITDA (earnings before interest, tax, depreciation, and amortization) rose 58 per cent YoY at Rs 44 crore during the quarter and the EBITDA margin expanded 500 basis points to 26 per cent in Q3FY20 from 21 per cent in Q3FY19.

The management said the company’s focus on operational efficiency has helped improve profitability in challenging times.

Traffic grew 9 per cent YoY to 188 million in Q3FY20 from 173 million in Q3FY19; however, total business enquiries delivered witnessed marginal decline of 6 per cent to 112 million from 120 million. Supplier storefronts grew 8 per cent YoY to 5.9 million in Q3FY20 and paying subscription suppliers grew 15 per cent YoY to 141.6 thousand, it said.

The stock surpassed its previous high of Rs 2,310 touched on October 10, 2019. At 09:54 am, it was trading 11 per cent higher at Rs 2,326 on the BSE, as compared to 0.25 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped over 10-fold with a combined 249,926 equity shares changing hands on the NSE and BSE so far.

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