B2B ecommerce marketplace IndiaMart posts profit of Rs 31.4 Cr in first quarter of FY20
B2B ecommerce firm IndiaMART Intermesh posted a consolidated profit of Rs 31.4 crore for the quarter ended on June 30, 2019.
The company had recorded a loss of Rs 56.7 crore in the same period a year ago.
The total consolidated income of IndiaMart increased by 37.5 percent to Rs 161.6 crore during the reported quarter from Rs 117.5 crore in the corresponding period of 2018-19.
"Consolidated revenue from operations grew by 30 percent on YoY basis due to increase in number of paying subscribers as well as higher realisation from existing customers. Consolidated Deferred Revenue grew by 32 percent from Rs 461 crore in first quarter of financial year 2019 to Rs 610 crore in first quarter of FY 2020 leading to much better visibility for revenues in future," IndiaMart said in a statement.
Dinesh Agarwal, Founder & CEO of IndiaMart InetrMesh.
Paying subscription suppliers increased to 1.32 lakh from 1.13 lakh on YoY basis.
"Our growth is a result of focus on execution and measures undertaken towards enhancing buyer and supplier experience. We are continuously investing in expanding our network, enhancing our technological capabilities and acquiring the best minds from the industry, IndiaMART Intermesh, Managing Director, Dinesh Agarwal said.
On June 24, the online marketplace IndiaMART InterMESH launched its Initial Public Offering (IPO). The IPO was subscribed 36.16 times on the final day of bidding.
The Rs 475-crore IPO received bids for 9,73,85,775 shares against the total issue size of 26,92,824 shares, according to the NSE data till 1900 hours.
The qualified institutional buyers' book was subscribed close to 30.83 times, non-institutional investors 62.12 times and retail individual investors 13.37 times, according to merchant banking sources.
Founded by cousins Dinesh Agarwal and Brijesh Agrawal in 1996 with seed money of Rs 40,000, IndiaMART InterMesh is an online B2B marketplace for business products and services, connecting buyers with suppliers. The company focuses on providing a platform to small and medium enterprises (SMEs), large enterprises, as well as individuals.
(Edited by Evelyn Ratnakumar)