Indiamart Intermesh stock slumps over 5% despite increase in Q2 profit

The company reported 11.76% rise in total revenues for the Sep-21 quarter on consolidated basis at Rs182.40cr.

Oct 22, 2021 02:10 IST India Infoline News Service

IndiaMart
Indiamart Intermesh recorded consolidated Profit after tax (PAT) for the Sep-21 quarter grew by 17.77% on a yoy basis at Rs82.20cr. Profits turned in marginally lower on a sequential basis by -6.5% compared to net profits of Rs87.90cr in the sequential June quarter.

The stock is currently trading at Rs8,106.05 down by Rs458.85 or 5.36% from its previous closing of Rs8,564.90 on the BSE.

The company reported an 11.76% rise in total revenues for the Sep-21 quarter on a consolidated basis at Rs182.40cr. The revenues were higher by just about 0.44% on a sequential basis compared to Rs181.60cr revenues in the Jun-21 quarter.

Commenting on the performance, Mr. Dinesh Agarwal, Chief Executive Officer, said: “We are pleased with the visible recovery momentum across business leading to modest growth in revenue, customers and deferred revenue in this quarter. Our strong balance sheet and cash flows from operations give us the wherewithal to help businesses transform, adopt digitalization and grow themselves in these times.”

“We continue to make the right investments needed to strengthen our value proposition, and positioning while leverage the emerging growth tailwind to create the long term shareholder value,” he added.

Even on a six monthly basis for the period ending September, the revenues for the current H1 at Rs364cr is higher by 15.1% on a yoy basis.

The company predominantly operates in the B2B ecommerce space and there is a vast untapped market for them to literally address. Net margins at 45.07% in the Sep-21 quarter was better than 42.77% in Sep-20 quarter. NPM was lower than the sequential quarter on higher employee costs.

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