IndiaMART InterMESH Q3: Strong numbers; key highlights of analyst call
The management does not expect any immediate problem to maintain margin at current level.
January 23, 2020 / 02:09 PM IST
IndiaMART InterMESH posted a 123 percent jump in its Q3FY20 (Oct-Dec) consolidated net profit at Rs 62 crore versus Rs 27.7 crore in the year-ago period.
Revenue of the company rose 23.4 percent at Rs 164.9 crore against Rs 133.6 crore, YoY.
Its earnings before interest, tax, depreciation and amortisation (EBITDA) rose 58.5 percent at Rs 43.6 crore versus Rs 27.5 crore, while EBITDA margin was up 580 bps at 26.4 percent.
Here are key highlights from IndiaMART InterMESH's conference call by Narnolia Financial Advisors:
The slowdown in traffic on the company’s website and mobile application is because of the economic slowdown. However, considering the current economic situation, the company has postponed the dynamic pricing strategy.
The management does not expect any immediate problems in maintaining margin at current levels. Though, the margin expansion will be slow compared to earlier year as the net customer addition is slow.
Management expects ARPU growth will be at 5-7 percent on YoY basis going ahead, similar to the historical trend.
The company will continue to work on the credit financing option.
It will add 70-100 manpower every quarter and growth in employee cost will be 18-20 percent going ahead.
The management feels that the logistic services do not add great values to the buyers and sellers in B2B business. So management is not thinking about adding logistics services as of now.