How were the results of the ecommerce player, Indiamart, announced recently for the Dec-20 quarter?

Indiamart Intermesh sales revenues grew by 5.28% to Rs.173.6 crore in the Dec-20 quarter. Its revenues have been relatively stable even in the pandemic due to its strong B2B franchise. The operating profits were up 122.22% at Rs.84 crore on smart cost controls pushing down expenses. Hence, OPM expanded from 22.92% to 48.39% in Dec-20.

Consolidated Profit after tax (PAT) for Dec-20 quarter was up by 29.35% at Rs.80.22 crore. The reason the PAT is growth is not as impressive as the Operating Profit growth is that company had benefited from deferred tax credit in the Dec-19 quarter. PAT margins expanded from 37.60% in Dec-19 to 46.20% in Dec-20.

There were some interesting takeaways for this quarter for Indiamart. Like most IT start-ups, Indiamart has also cut down sharply on costs leading to doubling of the operating margins on a yoy basis. Being a secured B2B market place, the impact of COVID pandemic on the business was very limited except for the two months.