Indiamart Intermesh profit up 58 percent sequentially

Indiamart Intermesh, a B2B online marketplace, reported consolidated net profit of Rs 88 crore in the first quarter of fiscal year (FY) 2022, growing 58 percent over the previous quarter's Rs 56 crore. On an annual basis, compared to Rs 74 crore in June 2020, the latest quarter saw a growth of 19 percent.

On the revenue front, at Rs 211 crore in the June 2021 quarter, Indiamart reported an annual and sequential growth of 13 percent and 11 percent respectively.

As the country's largest online B2B marketplace for business products and services, Indiamart's endeavor is to make it easier to do business by connecting buyers and sellers across product categories and geographies in India through business enablement solutions.

In its latest investor presentation, Indiamart said it caters to 56 varied industries, with 72 million products across 97,000 different categories. Against 6.6 million suppliers, Indiamart's network has 131 million registered buyers.

Around 55 percent of registered buyers do repeat buying, the company said. And there is a cross-sell opportunity within the network, as 38 percent of the suppliers are also registered as buyers on the network.

Nearly 33 percent of the buyers on the Indiamart network belong to metro cities, while 26 percent belong to tier-2 cities (population exceeding 5 lakh), and 41 percent in other parts of India. While 57 percent of the suppliers, who pay Indiamart to be featured on the marketplace, belong to metro cities, 27 percent and 16 percent belong to tier-2 cities and other parts of India.

The broad-based diversification has helped the company, as it attributed the June 2021 quarter's growth to improvement in realisations from existing customers and increase in the number of paying subscription suppliers.

From 1,33,000 in June last year, the number of paying subscription suppliers have registered an annual growth of over 9.7 percent to 1,46,000 in the quarter-ended June 2021. Similarly, from 191 million in June 2020 quarter, traffic (defined as the number of visits on Indiamart's desktop website, mobile website and mobile app) has grown by 40.3 percent annually to 268 million in the quarter-ended June 2021.

“We have been able to navigate the disruptions caused by the second wave of COVID-19 much better than the last year, and have sustained profitable growth in this quarter,” said Dinesh Agarwal, CEO and Managing Director, Indiamart Intermesh.

“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 capitalise on the new growth opportunities arising from the accelerated adoption of the internet,” he added.