indiaMART reports strong growth in Q2 FY25 with 18% rise in revenue

indiaMART InterMESH Limited announced a stellar performance for the second quarter ending September 30, 2024, showcasing an 18% increase in consolidated revenue from operations, hitting ₹348 crore, compared to ₹295 crore in the same quarter last year. This performance highlights indiaMART’s resilience and growing traction in the B2B marketplace space amidst rising digital adoption among businesses.

According to the company’s report, standalone revenue grew to ₹332 crore, while Busy Infotech, a subsidiary, recorded ₹15 crore in revenue, both marking 18% and 19% growth respectively on a year-over-year basis. Collections from customers showed a moderate growth of 6%, reaching ₹356 crore for the quarter.

In an effort to maintain their forward momentum, indiaMART’s deferred revenue also saw a healthy uptick, rising to ₹1,483 crore as of September 30, 2024. This growth is seen as a testament to their steady market demand, despite challenges in the business landscape. Meanwhile, net profit for Q2 FY25 hit ₹135 crore, translating into an impressive 33% profit margin.

Operational Growth Led by Strong Digital Adoption

Operational metrics also point to indiaMART’s expanding footprint. The company registered 28 million unique business enquiries during Q2 FY25, which is a 14% increase compared to the previous year. Additionally, supplier storefronts grew to 8 million, while paying suppliers rose to 218,000, driven by net additions of 2,400 subscribers during the quarter.

Dinesh Agarwal, CEO of indiaMART, indicated that their focus remains on enhancing buyer and supplier experiences, adding value to the ecosystem. He mentioned that the ongoing strong cash flows and growing internet adoption by businesses provide indiaMART with confidence in their sustained profitable growth. He added, “Our vision remains to ‘Make Doing Business Easy,’ and we are committed to enabling businesses to thrive in the online space.”

Financial Highlights for Q2 FY25

• Total Revenue: ₹348 crore, up 18% YoY
• Standalone Revenue: ₹332 crore, with an 18% growth rate
• EBITDA: ₹120 crore, translating to an EBITDA margin of 36%
• Net Profit: ₹135 crore, showcasing a net profit margin of 33%
• Deferred Revenue: ₹1,483 crore, marking a YoY increase of 19%

Analysts Expect More Positive Growth

Analysts believe indiaMART’s financial growth will continue, buoyed by strong collections and an expanding base of paying suppliers. The company’s earnings call, set for October 19, 2024, will likely shed more light on their strategic focus and growth drivers. During the call, senior management is expected to discuss the results and other key developments.

Current Market Sentiment and Share Price

The company, which trades on both BSE (BSE: 542726) and NSE (NSE: INDIAMART), has seen its share price trend upward following this latest earnings announcement. Market sentiment remains optimistic as investors focus on indiaMART’s continued digital push and steady operational growth.

Analysts at leading brokerage firms have noted that indiaMART’s growing revenue base, combined with strong EBITDA and net profit margins, position the company favorably in a rapidly digitalizing B2B environment. “indiaMART is benefiting from increased digital adoption across small and medium-sized enterprises, which boosts its revenue from paying suppliers and enhances its visibility in the market,” commented an industry expert.