Indiamart revenue rises 34%, management says margin has bottomed out

Indiamart Intermesh, a B2B e-commerce company, on January 19 reported a 60.68 percent rise in its consolidated net profit to Rs 112.8 crore for the third quarter that ended December 31, 2022.

The company had posted a consolidated profit of Rs 70.2 crore in the October-December quarter a year ago.

Its consolidated revenue from operations in the third quarter rose 33.65 percent to Rs 251.4 crore against Rs 188.1 crore in the corresponding period of the previous year.

Speaking to CNBC-TV18 after the earnings report, Dinesh Agarwal, Founder and CEO of the company said that the company continues to maintain a steady rate of 8,000 customer additions on a quarterly basis. However, in Q3, the company saw a lower number of customer additions compared to their guided number due to there being fewer days in the quarter.

Despite this, Agarwal has stated that the company's margin has bottomed out in Q3, and they are expecting to see revenue growth in the same range as collections.

“We are probably bottomed out at 25-28 percent. Now, we will start to increase the margin from here on slowly,” he said.

In terms of finances, Agarwal has also announced that the company plans to return 1/3rd of their cash over the long-term, while the rest will be used for potential acquisitions. This shows the company's commitment to both maintaining a strong financial position and expanding their reach in the industry.

Indiamart Intermesh is a leading e-commerce platform in India, connecting suppliers and buyers across various industries. With a strong track record of customer growth and a focus on financial stability, the company is well-positioned for continued success in the coming years.

Shares of Indiamart Intermesh Ltd on Thursday settled at Rs 4,476.70 apiece, down 0.72 per cent from the previous close.

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(Text input from PTI)