Shares in Indiamart Intermesh hit a fresh high of Rs. 4188.75 apiece on the BSE, surging over 9% in today's (September 2, 2020) trade. The sharp rally comes on the back of robust earnings outlook for the company.
On Tuesday, the company announced that it has divested 70% holding in equity share capital of Ten Times to Mayank Chowdhary and Atul Todi for a financial consideration of Rs. 21.17 lakh. Pursuant to the partial divestment via equity share sale, Ten Times Online Private Limited is no longer a fully-owned subsidiary and is instead only an associate company of Indiamart Intermesh.
For the quarter ended June of FY21, the leading market player in online B2B classifieds, posted a robust operational performance. Owing to several cost optimization methodologies, the EDITDA margin at the company grew to 48% as against 25% in the same quarter a year ago. Also, revenues at the company surged 4% y-o-y despite the pandemic related economic fall-out as there was witnessed some improvement in realization from the company's existing customer base.
Stock of Indiamart Intermest at 12:45 pm traded with gains of 7.44% at Rs. 4114.95 apiece on the BSE.