Collections have recovered to 80% of pre-COVID levels: IndiaMART
IndiaMART's second quarter revenue growth is largely similar to the last quarter but margin improvement continues. Dinesh Agarwal, founder & CEO, IndiaMART InterMESH, spoke to CNBC-TV18.
IndiaMART's second-quarter revenue growth is largely similar to the last quarter but margin improvement continues. Dinesh Agarwal, founder & CEO, IndiaMART InterMESH, spoke to CNBC-TV18.
Talking about a pickup in Q3, he said, “In the May-June-July and August we had been seen week-on-week growth and that has resulted in almost 80 percent of pre-COVID levels in terms of sales and collections both. Though we have recovered significantly from the last quarter however the revenue and collection are still slightly below the last year same quarter numbers.”
“Given that markets have opened up, the economy has opened up, but there is a risk of the third wave, so we are looking at it cautiously. We have yet not opened any offices and our staff is not able to visit any customers. So post Diwali if we are able to reach out to the market in full swing and that will derive the growth from here on.”
When asked about the plan to sell the stake, Agarwal said, “Currently we are following our own plan, so we are neither looking at raising any capital nor looking to sell any stake.”
On cost-cutting Agarwal said, “Our cost base has been running at about Rs 120 crore per quarter, in lockdown lot of cost-cutting was planned and done during the quarter and that has resulted in significant cost going down to almost Rs 80 crore per quarter. As the business will open up, as offices will open up half of that cost should come back and some of the cost advantages that we have taken can be permanent.”
To know more about the company's Q2 performance, watch the video.
(Edited by : Bivekananda Biswas)
First Published: Nov 11, 2020 6:08 PM IST
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