IndiaMART InterMESH (INDIAMART) Q1 24/25 earnings summary

Executive summary

• Consolidated revenue from operations reached ₹3,313 million (INR 331 crore), up 17% year-over-year, with net profit at ₹1,139 million (INR 114 crore), a 37% increase year-over-year.

• EBITDA margin improved to 36-37% from 28% in Q1 FY24, with strong cash generation and margin expansion.

• Unique business inquiries increased 15% year-over-year to 25 million; total paying subscribers reached 216,000.

• Net addition of paying suppliers was 1,500, with continued churn in the Silver segment but strong growth in Gold and Platinum customers.

• Strategic investments included a 10% stake in Baldor Technologies (IDfy) and increased stake in Simply Vyapar Apps.

Financial highlights

• Deferred revenue grew 23% to ₹1,474 crore; collections from customers were ₹366 crore, up 14% year-over-year.

• Standalone revenue from operations was ₹350 crore, up 18% year-over-year; standalone EBITDA margin was 37%.

• Consolidated cash from operations was ₹136 crore; cash and treasury balance at ₹2,319 crore as of June 30, 2024.

• Busy Infotech revenue grew 15% year-over-year to ₹15.5 crore, but EBITDA margin declined to 7%.

• Basic EPS was ₹19.00 (Q1 FY25) vs ₹13.60 (Q1 FY24); Diluted EPS was ₹18.96 (Q1 FY25) vs ₹13.57 (Q1 FY24).

Outlook and guidance

• Management expects EBITDA margin to normalize to 33-34% in the next two quarters as customer acquisition costs rise.

• Strategic focus remains on expanding the buyer and supplier network, commerce enablement, fintech, and SaaS business enablement.

• Continued investment in customer experience, accounting, logistics, procurement, and HR tech platforms.

• No commitment on net subscriber additions for FY25 due to persistent churn; focus remains on quarter-by-quarter performance.