The company’s stock has more than doubled since its listing in mid last year.
ETIntelliegenceGroup: The stock of IndiaMart Intermesh, the country’s largest B2B online product and services platform, gained 14.4 per cent on Wednesday on better than expected December quarter numbers.
It reported revenue of Rs 165 crore, a year-on-year growth of 23 per cent. Its deferred revenue, grew by 26 per cent to Rs 517 crore — the company spreads its revenues since the fees earned are from annual or three year subscriptions. Higher growth was primarily due to increase in number of paying subscribers as well as higher realisation from existing customers. Paying subscribers grew by 15 per cent to 1.4 lakh. Traffic grew by 9 per cent to 188 million.
Due to better operating leverage, operating margin before depreciation (EBIDTA margin) rose to 26 per cent from 21 per cent in the yearago quarter. Net profit grew by 124 per cent to Rs 62 crore.
The company’s stock has more than doubled since its listing in mid last year. Investors have been lapping up the shares on the back of strong business model, which consists of negative working capital, high growth and cash rich balance sheet. Despite the sharp rise, the stock was traded at 32 times FY20 expected earnings at the Wednesday’s closing price of Rs 2,381.3 on the BSE.
