Shares of IndiaMART InterMESH jumped over 14 percent in early trade on Wednesday after the company's consolidated profit for the first quarter of fiscal 2021 doubled amid strong operating performance. The stock price gained as much as 14.06 percent to hit an intraday high of Rs 2,456.60 apiece on the BSE. At 11:45 am, the shares traded at Rs 2,225.80, up Rs 72.20, or 3.35 percent.
The company’s net profit in Q1FY21 increased to Rs 74.1 crore from Rs 32.4 crore in the year-ago quarter. Revenue from operations during the quarter rose 3.9 percent to Rs 153.1 crore from Rs 147.3 crore YoY led by marginal improvement in the realisation of existing customers.
“Number of paying subscription suppliers were the same as last year due to the challenging economic and market conditions amid the COVID-19 pandemic. Consolidated deferred revenue grew 3 percent to Rs 628 crore in Q1 FY21 YoY,” the company said in a regulatory filing.
Consolidated EBITDA in Q1FY21 was Rs 73 crore as compared to Rs 37 Crore in Q1FY20, representing a growth of 100 percent YoY. EBITDA margins increased to 48 percent from 25 percent on-year, primarily driven by various cost optimisation measures leading to a sustained and temporary rationalisation of expenses.
“I am pleased to report a modest financial performance in Q1 as the ongoing adverse market conditions had an anticipated impact on our customers, revenue, deferred revenue and cash flow from operations,” said Dinesh Agarwal, CEO, IndiaMART InterMESH.
“While we managed to improve profitability due to cost optimization measures, our focus remained to stand by our employees and customers during these testing times. Given the overall uncertainty of how long this continues, our strong balance sheet and a resilient business model will help us to navigate through the ongoing crisis and as the businesses realize the need of transforming themselves to online, our strong value proposition will help us in getting back to growth soon,” he added.
First Published: Jul 22, 2020 12:40 PM IST
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