Expenses Surge Leads to IndiaMART’s FY23 Net Profit Falling 5% to INR 297 Cr

• ByStartupStory     |    April 29, 2023

IndiaMART InterMESH, a B2B marketplace, witnessed a decline of nearly 5% in its consolidated net profit to INR 283.8 Cr in FY23 due to escalating expenses. The company’s revenue from operations, on the other hand, surged by 31% to INR 985 Cr in the fiscal year ended March 2023, compared to INR 753 Cr in the previous year. Total income also grew by 34% to INR 1,166 Cr from INR 866 Cr in FY22.

IndiaMART InterMESH’s total expenses skyrocketed by over 63% to INR 757 Cr in FY23 from INR 463 Cr in FY22, which led to a decline of 13% in its earnings before interest, taxes, depreciation, and amortisation (EBITDA) to INR 268 Cr. Employee benefit expenditure was the biggest contributor to expenses, rising 58% to INR 424.7 Cr in FY23 from INR 267.6 Cr in the previous year. Other expenses also surged by 64% to INR 292.8 Cr in the year ended March 2023 from INR 178.1 Cr in FY22. Consequently, the company’s EBITDA margin shrank to 27% from 41% in FY22.

IndiaMART InterMESH’s adjusted EBITDA, which excludes ESOP expenses, decreased to INR 294 Cr in FY23 from INR 318 Cr in FY22. The company’s employee share-based payment expense rose to INR 27 Cr in FY23 from INR 10 Cr in the previous year. In the quarter ended March 2023, IndiaMART’s net profit fell 3% to INR 55.8 Cr from INR 57.4 Cr in Q4 FY22, which was a decline of 50% from INR 112.8 Cr in the previous quarter ended December 2022. However, the B2B marketplace’s revenue from operations increased by 33% to INR 269 Cr in Q4 FY23 from INR 201 Cr in the same period last year.

IndiaMART InterMESH’s CEO and cofounder, Dinesh Agarwal, commented on the company’s results, stating that the business is committed to investing in product and technology, as well as building robust customer relationships. He added that these initiatives are vital to the company’s long-term strategy to achieve profitable growth and to deliver value to its stakeholders. IndiaMART’s cash generated from operations increased to INR 476 Cr in FY23 from INR 402 Cr in FY22.

During the quarter ended March 2023, IndiaMART InterMESH observed growth in key operational metrics. The B2B marketplace recorded 25.2 Cr users and 2.2 Cr unique business enquiries in Q4. Additionally, the number of supplier storefronts increased 6% YoY to 75 Lakh, while 8,335 new paying subscription suppliers were added during the quarter. As a result, the total number of subscribers increased to 2.02 Lakh in Q4 FY23. The company also witnessed a workforce growth of nearly 4%, or 170 employees, over Q3 FY23, with a total of 4,583 employees at the end of FY23. The company’s board recommended a dividend of INR 20/share and the issuance of bonus shares in the ratio of 1:1. On Friday, IndiaMART’s shares on the BSE closed 2.25% higher at INR 5,364.15.

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