IndiaMART InterMESH (INDIAMART) Q2 24/25 earnings summary

Executive summary

• Consolidated revenue from operations reached INR 348 crores in Q2 FY25, up 18% year-over-year, with collections from customers at INR 356 crores, growing 6% YoY.

• Net profit for the quarter was INR 135 crores (margin 33%) on a consolidated basis, up 95% YoY; standalone net profit was INR 127 crores (margin 32%), up 53% YoY.

• Deferred revenue increased 19% YoY to INR 1,483 crores, reflecting strong future revenue visibility.

• Unique business enquiries rose 14% YoY to 28 million, and total paying suppliers grew to 218,000, with net customer additions of 2,400 this quarter.

• Platinum and Gold customers, representing 50% of the base and 75% of revenue, remain stable with low churn.

Financial highlights

• Standalone revenue from operations was INR 332 crores, up 18% YoY; standalone collections were INR 337 crores, up 5% YoY.

• Standalone EBITDA was INR 120 crores (margin 36%), up 48% YoY; consolidated EBITDA margin improved to 39% from 28% YoY.

• Consolidated net profit for the quarter was INR 135 crores; cash generated from operations was INR 103 crores.

• Cash and treasury balance stood at INR 2,449 crores as of September 30, 2024.

• BUSY Infotech reported net billing of INR 17.1 crores (up 17% YoY), revenue of INR 15.3 crores (up 19% YoY), and net profit of INR 2.5 crores.

Outlook and guidance

• Management expects collection growth to recover to double digits, but not to exceed 10%-15% unless structural churn issues are addressed.

• Margin expansion is seen as temporary, with sustainable EBITDA margins expected in the 34%-35% range as growth investments resume.

• Focus remains on expanding the buyer and supplier network, improving engagement, and driving commerce enablement.

• Continued investment in fintech, accounting, and business enablement SaaS solutions.

• Initiatives to reduce churn and improve customer experience are ongoing, with results expected over the next two quarters.