Retail Stock IndiaMart InterMesh Skyrockets 9% After Q4; To Reward Rs 20/Sh Dividend Soon

Shares of IndiaMart Climbed 9% on Thursday in its shares following the announcement of its fourth-quarter financial results for the fiscal year 2024. The company reported a consolidated net profit jump of 79%, reaching a remarkable Rs 99.6 crore in the March quarter.

Shares of IndiaMart surged 8.52% to Rs 2874 on the BSE. At NSE, stock rose 9% to Rs 2896.

Despite the usual sluggishness experienced by the e-commerce sector in the quarter, IndiaMart showcased resilience with a 17% growth in revenue, which amounted to Rs 315 crore compared to Rs 269 crore in the corresponding period last year. This growth trajectory also extended to its subsidiary, Busy Infotech, which recorded a revenue increase of 24% to Rs 14 crore.

"We expect collections to improve in the coming quarters, led by an improvement in customer addition to around $5-6k per quarter. The business model remains robust, led by a strong value proposition, as it requires little advertising. It has around 65% market share in the online B2B classified space," according to the Centrum Capital report.

The company's stellar performance was further underscored by its proactive approach towards shareholder value enhancement. The Board of Directors proposed a final dividend of Rs 20 per equity share of face value Rs. 10 for the fiscal year 2024, subject to shareholder approval at the upcoming Annual General Meeting. This decision reflects IndiaMart's commitment to rewarding its investors while maintaining a robust financial position.

The company witnessed a substantial increase in unique business inquiries, totaling 24 million, marking a commendable 14% year-on-year growth. Additionally, the number of supplier storefronts expanded to 7.9 million, indicating a 5% increase from the previous year. Paying suppliers also saw a net addition of 3,000 subscribers, bringing the total to 214,000 during the quarter.

"We have closed the financial year with a steady growth in revenue, deferred revenue, profits and cash flows. Our focus remains on enabling more and more businesses to grow online by providing them a great product and customer experience" Dinesh Agarwal, CEO, IndiaMart said in statement.

"IndiaMart's robust financial position, driven by strong cash flow from operations and continued investments in enhancing its value proposition. He exuded confidence in achieving sustained profitable growth amidst the backdrop of escalating internet adoption among businesses" Agarwal added it.

IndiaMart's remarkable performance in the fourth quarter of fiscal year 2024 underscores its resilience and adaptability in navigating challenging market conditions.