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B2B biggie IndiaMart looks to sail on online wave

NEW DELHI, may 14, 2020: IndiaMART, the country’s  India's largest online B2B marketplace for business products and services, looks forward to the businesses transforming themselves to online transactions to charter its growth path, post corona turbulence.

Company Chief Executive Officer Dinesh Agarwal said there could be a short-term decline in demand and business activity due to the ongoing turbulence. But, he said, “we believe our value proposition will only become stronger as more and more businesses look for transforming themselves and adapt to online. Our strong balance sheet and a resilient business model will help us to navigate through these tough times and emerge stronger and better.”

IndiaMART InterMESH Limited, as the listed entity known, reported a modest growth in revenues in these turbulent times and its gur growth in cash flow from operations and deferred revenues remained subdued as the economy continued to face strong headwinds.

“IndiaMART makes it easier to do business by connecting buyers and sellers across product categories and geographies in India through business enablement solutions. IndiaMART provides ease and convenience to the buyers by offering a wide assortment of products and a responsive seller base while offering lead generation, lead management and payment solutions to its sellers,” the company said.

The company reported consolidated Total Revenue from Operations of Rs. 170 Crore, 23% growth YoY driven by an increase in the number of paying subscribers as well as higher realization from existing customers. Consolidated Deferred Revenue grew by 17% from Rs. 586 Crore in Q4 FY19 to Rs. 685 Crore in Q4 FY20 Crore leading to much better visibility for future revenues.

Consolidated EBITDA was Rs. 52 Crore representing a margin expansion from 15% in Q4 FY19 to 31% in Q4 FY20 partly due to increase in revenues and adoption of IndAS 116. Consolidated EBIT for Q4 FY20 was Rs. 46 Crore representing a margin expansion from 14% in Q4 FY19 to 27% in Q4 FY20.

Profit before Tax was at Rs. 61 Crore representing a Profit before Tax margin of 33%. Net Profit was at Rs 44 Crore.

The Company generated consolidated Cash Flow from Operations of Rs. 94 Crore leading to Cash and Investments of Rs. 931 Crore as on March 31, 2020 as compared to 685 Crore on March 31, 2019, an increase of 36% YoY.

Operational Highlights (Q4 FY2020):Traffic grew to 180 million in Q4 FY20 from 171 million in Q4 FY19, an increase of 5% YoY and total business enquiries delivered increased to 116 million from 112 million, a growth of 3%. Supplier Storefronts grew to 6 million in Q4 FY20 an increase of 8% YoY and paying subscription suppliers grew to 147 thousand, a growth of 14%.

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