The earnings season is bringing about its effect on the equity markets and the performance of the companies listed on the equity markets. The shares of IndiaMART, listed as IndiaMART InterMESH Ltd. on the National Stock Exchange (NSE), felt the pinch of a seemingly underwhelming quarterly result for the second quarter of the fiscal year.
Collection Growth Slows Down
In the early hours of the day's trade, the company shares dipped by a gargantuan 13 per cent.
This development came to pass, as the company results declared through an exchange filing exhibited trends of a slowdown in some of the avenues of the company's business.
The company's revenue for the quarter stood at Rs 348 crore. The net profit stood at Rs 135 crore. The EBITDA, or earnings before interest, taxes, depreciation, and amortisation, stood at Rs 135 crore. | File/ Representative Image
Here, despite displaying a reasonable rise in its total income and net profit numbers, IndiaMart's collection growth slowed down in Q2 of FY25. Here, the collection growth for e-com site stood at Rs 356 crore, with a 6 per cent growth. This figure is not only lower than the Rs 366 crore generated in the previous quarter (Q1 FY25), but also the growth of 14 per cent dwarfs the growth achieved in Q1.
Subscription Dips
In addition, for a company like IndiaMart, its subscription rate is an essential part of its business model. Here the subscription rate also slowed down.
The company's revenue for the quarter stood at Rs 348 crore. The net profit stood at Rs 135 crore. The EBITDA, or earnings before interest, taxes, depreciation, and amortisation, stood at Rs 135 crore. This is as per the consolidated results in the exchange filing filed by the company.
The shares of IndiaMART InterMESH Ltd. on the National Stock Exchange (NSE) started trading in red on Monday with major cuts of over 13 per cent.
This decline only burgeoned further on the shoulders of the company's stock as the cuts extended their reach and dropped even more, expanding their losses. At 11:18 IST, the company shares dipped by 15.71 per cent or Rs 473.45. This took the overall value of the shares to Rs 2,539.70 per piece.
