IndiaMart Q1 results: Net profit rises 77% to Rs 83 crore; co announces Rs 500 crore share buyback

The board of online B2B marketplace Indiamart Intermesh Ltd on Thursday approved buyback of 12,50,000 shares worth up to Rs 500 crore at a price of Rs 4,000 per share. The buyback will be done via tender route, the company said in a regulatory filing.

IndiaMart Intermesh's shares jumped 1.31 percent to Rs 2,911 on the NSE in today's trade. The stock has given 37 percent returns on the NSE over a 12-month period, which is higher than the return of 20.32 percent given by Nifty50 during this period.

A buyback, also referred to as a share repurchase, occurs when a company purchases its own existing shares in order to decrease the number of shares accessible for trading on the open market.

The Noida-headquartered company recorded a 77 percent year-on-year (YoY) rise in consolidated net profit at Rs 83 crore in the June 2023 quarter, as inflation pangs softened considerably during each month of the quarter. The company had registered a net profit of Rs 47 crore in the year-ago period of last fiscal.

Other income at Rs 57 crore during quarter under review also provided a boost. The same was at Rs 1 crore in the same quarter of last year. During the same period, the company’s revenue rose 25 percent to Rs 282 crore in the three months to June, from Rs 225 crore in Q1FY23.

However, on a sequential basis, the company's net profit jumped 46 percent from Rs 56 crore to Rs 83 crore in the three months to June, even as revenues grew at a slower pace of around 5 percent from Rs 269 crore in the March quarter to Rs 282 crore in Q1FY24.

"We are pleased with the healthy growth in revenue, deferred revenue, cash flows along with steady operating margins as we start the new fiscal. 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," said Dinesh Agarwal, Chief Executive Officer, Indiamart.

During FY23, the board had also recommended the issue of bonus shares in the proportion of 1:1, in addition to a final dividend of Rs 20 per equity share for the fiscal.

IndiaMart InterMesh is a midcap company having a market cap of Rs 17,626 crore.