IndiaMart shares plunge nearly 9% after Q1 numbers paint bleak outlook

Though IndiaMart reported strong financial numbers for the recently concluded quarter, a few operational metrics painted a bleak outlook for the company.

In a stock exchange notification on Tuesday, IndiaMart said that its consolidated revenue from operations jumped 17% year-on-year to ₹331 crore for Q1FY25. Net profit was up 37% to ₹114 crore during the quarter compared to the year-ago period.

The company’s operating profit, or ebitda (earnings before interest, tax, depreciation and amortisation) stood at ₹120 crore in Q1FY25, up 55% compared to the year-ago period.

However, in the earnings press conference, the company disclosed that IndiaMart's traffic dropped for a third straight month to 267 million during the June quarter compared with 269 million during the March quarter.

Also, IndiaMart added 1,519 paid subscribers during the June quarter compared with the addition of 2,683 paid subscribers in the March quarter. This was far from the company’s earlier guidance where it said that it would be returning to its previous trend of adding 5,000-6,000 paid subscribers every quarter by the end of the September 2024 quarter.

The company’s collections during Q1FY25 increased 14% year-on-year to ₹366 crore. This, too, was lower than the management’s 20% growth guidance for collections for financial year 2024-25.

Reacting to the numbers, shares of IndiaMart lost as much as 8.6% on Wednesday to hit an intra-day low of ₹2,882.3 apiece on the NSE. However, shares of IndiaMart Intermesh Ltd recovered some losses to trade 6.42% lower at ₹2,950.05 apiece at 1:12 pm.

The stock is still up over 8% year-to-date, but is down over 5% in the past one year.