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IndiaMart Q2 net profit slides 57% on higher tax payment

IndiaMart Q2 net profit slides 57% on higher tax payment
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Online business-to-business marketplace firm IndiaMart Intermesh reported a 57% year-on -year decline in consolidated net profit for the second quarter ended September 30 to Rs 8.7 crore owing to higher tax impact of Rs 42 crore.

The ecommerce firm faced higher tax payment on account of one-time levy of Rs 31.4 crore as it moved to the 25% tax regime as per the option given in Taxation Amendment Ordinance 2019, an official statement said.

IndiaMart’s consolidated revenue increased 28% to Rs 157 crore as paying subscribers and realisations from existing customers increased. Paying subscription increased 15% to 137,000 users.

Business enquiries delivered saw an increase of 4% to 123 million while supplier storefronts was up 6% to 5.7 million.

Higher sales also led to operating margin expansion to 23% in the September quarter from 18% a year ago.

"As we continue to steer ourselves in the challenging macro environment, we remain cautiously optimistic of maintaining the growth momentum," said Dinesh Agarwal, chief executive officer of IndiaMart Intermesh.

IndiaMart  plans to  focus on including large and medium enterprises on its portal and expanding buyers, improve its online platform and supplier network.

The company, which listed its shares on the exchanges in July this year, has 77 branches in 37 cities across India with 3,874 sales representatives.

Its platform integrates buyers and sellers with buyer-focused strategy and lead generation for sellers.

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