IndiaMART InterMESH tanks 10%, stock hit fresh 52-week low post Q3 results

Shares of IndiaMART InterMESH hit a fresh 52-week low of Rs 5,258, down 10 per cent on the BSE in Tuesday’s intra-day trade after the company reported a disappointing set of numbers for the December quarter (Q3FY22). Consolidated net profit declined 12 per cent year-on-year (YoY) at Rs 70 crore from Rs 80 crore in a year ago quarter (Q3FY21).

The stock price of India’s largest online B2B marketplace for business products and services traded at its lowest level since December 2020. It quoted lower for the seventh straight trading day, and has plunged 22 per cent during the period. The stock has nearly halved from its 52-week high level Rs 9,952 hit on February 5, 2021.

At 09:51 am; IndiaMART InterMESH traded 8 per cent lower at Rs 5,366, as compared to 0.25 per cent decline in the S&P BSE Sensex. The trading volume at the counter more-than-doubled with a combined 196,000 equity shares changing hands on the NSE and BSE in first 35 minutes of trade.

In Q3FY22, the company’s revenue from operations grew 8 per cent YoY to Rs 188 crore from Rs 174 crore in Q3FY21. Earnings before interest tax and depreciation and amortisation (EBITDA) margin contracted 900 bps at 42 per cent during the quarter.

Meanwhile, IndiaMART, announced its participation in the Series B Investment Round of Simply Vyapar Apps Private Limited (‘Vyapar’), of Rs 217.6 crore.

The round has been led by WestBridge Capital, along with the participation of existing investor India Quotient. Vyapar’s valuation post this round shall stand at approximately Rs 883 crore, the company said.

As part of the transaction, IndiaMART acquired shares for an aggregate investment of Rs 61.55 crore, via a mix of primary and secondary share purchases. Post this round, IndiaMART shall hold 27 per cent in Vyapar on a fully diluted basis.

Vyapar offers a comprehensive GST billing, accounting and inventory management mobile and desktop software app for small businesses, which allows them to digitize their business operations. It has over 1 lakh paying customers for its product.

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