IndiaMART net profit down 27% in Q3 FY24 despite revenue growth

IndiaMART, an online wholesale marketplace, saw its consolidated net profit decline by 27% to Rs 82 crore in the third quarter of FY24 compared to Rs 112.8 crore in Q3 FY23.

Despite this downturn, the company experienced a 21% YoY growth in consolidated operating revenue, reaching Rs 305.3 crore in Q3 FY24 compared to Rs 251.4 crore in the year-ago period, the company said in a regulatory filing with the BSE.

Its operating profit, also known as EBITDA, rose 22.4% to Rs 85.9 crore for the December quarter.

Expenses for the third quarter totalled Rs 230.2 crore, marking an almost 20% increase YoY from Rs 192 crore in Q3 FY23. Notably, the company's employee benefit expenses in Q3 FY24 rose 27% to Rs 138.5 crore from Rs 108.4 crore in the year-ago period.

IndiaMart saw 272 million visitors and received 23 million unique business inquiries in the quarter, indicating a YoY growth of 9% in traffic and 4% in business enquiries, the company said on Thursday.

The number of supplier storefronts also went up to 7.8 million, showcasing a 5% increase compared to the previous year. Additionally, the number of paying subscription suppliers reached 212,000, with a net addition of 1,826 subscribers during the quarter.

"We are pleased to report modest growth in revenue, deferred revenue, and healthy operating margins in the third quarter. We continue to focus on enhancing customer experience on our platform and drive deeper penetration of paying customers across cities, enabling businesses to grow online," Dinesh Agarwal, CEO of IndiaMART, said in a statement.

"We remain confident of sustained profitable growth and cash flows as we leverage market opportunities amidst increasing digital adoption by businesses," he added.

IndiaMART provides a platform for small and medium enterprises, large enterprises, and individuals to trade with each other. Founded in 1999 by Dinesh Agarwal, it also provides various services, including a payment protection programme for buyers and an enhanced business visibility and lead management system for suppliers.