IndiaMART InterMESH - Q2FY22 First Cut - YES Securities

Both Revenue and EBITDA margin below estimate.

• Reported revenue of Rs 1824 mn (up 0.4% QoQ, up 11.8% YoY). The less than expected revenue growth is due to less than expected number of business enquiries delivered which declined by 6.8% QoQ on account of continued impact of 2nd wave on MSMEs.
• Annualized ARPU grew by 5.6% YoY to Rs 48,400 (Q1 ARPU had one off effect).
• Reported EBITDA margin of 45.6% ( down 440 bps YoY, down 320 bps QoQ). The decline in margin was due to higher employee cost which increased by 9.5% QoQ.
• Other operating metrics showed healthy growth
• The number of registered buyers increased to 138 mn compared to 131 mn in Q1FY22
• Total traffic to the portal increased to 284 mn compared to 268 mn in Q1FY22.
• Total live products on the platform increased to 76 mn compared to 74 mn in Q2FY22.
• The number of paying subscribers increased to 150k compared to 146 k in Q1FY22.
• Overall, The adverse impact of Covid19 wave on MSMEs impacted the performance in the quarter. We expect the financial performance to improve from Q3FY22. We currently have BUY Rating in the stock.

Shares of Indiamart Intermesh Limited was last trading in BSE at Rs. 7938.35 as compared to the previous close of Rs. 8564.90. The total number of shares traded during the day was 11385 in over 4200 trades.

The stock hit an intraday high of Rs. 8290.00 and intraday low of 7814.00. The net turnover during the day was Rs. 92470060.00.

Source : Equity Bulls

Keywords

IndiamartIntermesh INE933S01016 INDIAMART InternetSoftware YESSecurities Q2FY22 FirstCut