IndiaMart's consolidated net profit dropped 27 percent to Rs 82 crore in December quarter of the current financial year, the online business-to-business (B2B) marketplace said on January 19.
The company’s net margin fell from to 27 percent from 45 percent during the period amid an increase in employee costs.
Employee costs rose 29 percent to Rs 139 crore in Q3 from Rs 108 crore in the year-ago period.
During the December quarter, the B2B e-commerce industry also faced the demand headwind from a rise in wholesale prices of electronics, manufacturing machinery & equipment, and food articles.
In a quarter which is typically the best in the year in terms of e-commerce sales due to the festival season, IndiaMart’s revenue grew 22% to Rs 305 crore from Rs 251 crore in the year-ago period.
Shares of IndiaMart were trading at Rs 2,500 , down 3.85 percent.
Dinesh Agarwal, Chief Executive Officer, IndiaMart, said: "We are pleased to report modest growth in revenue, deferred revenue, and healthy operating margins in the third quarter. We continue to focus on enhancing customer experience on our platform and drive deeper penetration of paying customers across cities, enabling businesses to grow online."
"We remain confident of sustained profitable growth and cash flows as we leverage market opportunities amidst increasing digital adoption by businesses," he added.
IndiaMart registered online traffic of 272 million and unique business enquiries of 23 million in Q3 FY24; representing a YoY growth of 9 percent and 4 percent, respectively.
Supplier storefronts on the platform grew to 7.8 million, an increase of 5% YoY and paying subscription suppliers grew to 212,000 representing net addition of 1,826 subscribers during the quarter.
Standalone revenue from operations of IndiaMart grew to Rs 291 crore as compared to Rs 240 crore last year representing a YoY growth of 21%.
The growth was primarily driven by improvement in realisation from existing customers and a 9% increase in number of paying subscription suppliers, the company said. Collections from customers was at Rs 316 crore for the quarter.
Meanwhile, deferred revenue as on December 31, 2023 increased to Rs 1,229 crore representing a YoY growth of 24%.
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