New Delhi, Jul 20 (PTI) Online B2B marketplace and discovery platform IndiaMart on Thursday reported a 78 per cent rise in its net profit to Rs 83 crore in the April-June quarter, riding on an increased user base that led to higher revenue.
The company also announced the buyback of 12,50,000 equity shares worth Rs 500 crore.
IndiaMart had reported a net profit of Rs 47 crore in the corresponding quarter a year ago.
The consolidated revenue from operations stood at Rs 282 crore in the reporting quarter, registering a growth of 26 per cent year-on-year, "primarily driven by a 16 per cent increase in number of paying subscription suppliers", the company said in a regulatory filing.
Standalone revenue from operations of IndiaMART and its accounting software service arm Busy Infotech stood at Rs 268 crore and Rs 13 crore, respectively, during the quarter under review. Both firms registered a year-on-year growth of 25 per cent and 26 per cent, respectively.
IndiaMart's consolidated deferred revenue increased by 25 per cent to Rs 1,202 crore as of June 30, 2023.
The company continued making growth investments in manpower, product and technology, sales and servicing, resulting in a growth in revenue and paying subscription suppliers. "As a result, standalone EBITDA stood at Rs 76 crore in the first quarter of FY24, representing an EBITDA margin of 28 per cent," IndiaMart said.
Other income increased to Rs 57 crore primarily due to fair value gain on treasury investments.
Consolidated cash flow from operations was Rs 91 crore, while cash and investments balance stood at Rs 2,394 crore as of June 30, 2023.
IndiaMART registered a total traffic of 25.4 crore and 2.20 crore unique business enquiries in Q1 FY24.
According to Dinesh Agarwal, Chief Executive Officer of IndiaMart, the company will continue to invest in technology and people to accelerate digital adoption among businesses.
"We are confident about the continued growth and will continue to invest in technology and people to strengthen our value proposition further to accelerate digital adoption amongst businesses. Our sustainable cashflow helps us in making these investments towards building a strong foundation to leverage emerging growth opportunities," Agarwal said.
Meanwhile, the company's board has also approved a share buyback worth Rs 500 crore.
"Board of directors approved a buyback of 1,250,000 equity shares at Rs 4,000 per equity share, for an amount not exceeding Rs 500 crore, subject to the approval of shareholders," IndiaMart said.
The online marketplace, which connects buyers with suppliers, claims to have a 60 per cent market share of the country's online B2B classified space.
Shares of IndiaMart ended at 2,899.30 on the BSE on Thursday, 0.90 per cent up from its previous close. PTI HVA BAL BAL