IndiaMart Q3 Results: Paying subscriber addition falls QoQ; stock declines 7%

E-commerce company IndiaMart InterMesh Ltd. reported lower paying subscribers compared to the subsequent quarter, which resulted in the stock dropping as much as 7% post the earnings announcement.

Net addition of paying subscribers in the December quarter stood at 1,826 compared to 2,064 during the September quarter, IndiaMart said in a filing.

For the December quarter, IndiaMart reported a net profit of ₹82 crore, down from ₹112.8 crore in the year-ago period, due to significant decline in other income. On a sequential basis, the net profit has risen 18.6% from ₹69 crore in the previous September quarter.

The Noida-headquartered company's revenue from operations jumped 21.5% to ₹305 crore for the reporting period. It was ₹251 crore in the corresponding period of last year.

Operating profit, known as EBITDA, rose 22.4% to ₹85.9 crore, while margins were flat at 28% on-year for the December quarter.

The company also recorded a significant decline in other income at ₹41.7 crore from ₹102 crore in the same quarter a year ago.

"We continue to focus on enhancing customer experience on our platform and drive deeper penetration of paying customers across cities, enabling businesses to grow online. We remain confident of sustained profitable growth and cash flows as we leverage market opportunities amidst increasing digital adoption by businesses," said Chief Executive Officer Dinesh Agarwal.

Shares of IndiaMart are currently trading 4.5% lower at ₹2,476.5.