Indiamart Intermesh Q3 PAT up 29.3% at Rs80.2cr on cost controls

Indiamart Intermesh reported 5.28% growth yoy in Dec-20 quarter consolidated revenues at Rs173.6cr

Jan 18, 2021 04:01 IST India Infoline News Service

Indiamart Intermesh reported 5.28% growth yoy in Dec-20 quarter consolidated revenues at Rs173.6cr. In terms of top line, the company revenues have been stable even in the midst of the pandemic as its strong B2B franchise enabled the company to maintain business flows.

For the Dec-20 quarter, the consolidated operating profits were up 122.22% at Rs84cr. This was on the back of very smart cost controls pushing down other expenses sharply. As a result, operating margins or OPM expanded from 22.92% in the Dec-19 quarter to 48.39% in Dec-20 quarter.

Consolidated Profit after tax (PAT) for the Dec-20 quarter was up 29.35% at Rs80.22cr as the company had benefited from a deferred tax credit in the Dec-19 quarter. As a result, the PAT margins expanded only from 37.60% in Dec-19 to 46.20% in Dec-20.

Financial highlights for Dec-20 compared yoy and sequentially

Indiamart Intermesh
Rs in Crore Dec-20 Dec-19 YOY Sep-20 QOQ
Total Income (Rs cr) ₹ 173.60 ₹ 164.90 5.28% ₹ 163.20 6.37%
Operating Profit (Rs cr) ₹ 84.00 ₹ 37.80 122.22% ₹ 77.30 8.67%
Net Profit (Rs cr) ₹ 80.20 ₹ 62.00 29.35% ₹ 69.80 14.90%
Diluted EPS (Rs) ₹ 27.19 ₹ 21.12 ₹ 23.75
OPM 48.39% 22.92% 47.37%
Net Margins 46.20% 37.60% 42.77%

Key takeaways from the Dec-20 quarter results

  • Like most of the IT companies and other start-ups, the company has also cut down sharply on costs which have been largely responsible for the more than doubling of the operating margins on a yoy basis.
  • The impact of the COVID pandemic on the business was very limited except for the two month demand when most businesses were not fully operational. However, the strong leadership that Indiamart has in the B2B e-Marketplace puts it in a more de-risked position.

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