Thread by @ValueEducator

#Indiamart Q3 2022 Concall Highlights

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Financial Update

1. Consolidated Revenue from operations for Q3 was ₹188 Cr, growth of 8% YOY.
2. Deferred revenue in Q3 was ₹790 Cr, up 25% YOY.

3. Consolidated EBITDA was ₹79 Cr, representing a margin of 42%.
Net Profit for Q3 was ₹ 70 Cr, with a margin of 33%.
Cash Generated from Operating Activities ₹ 84 Cr, up 9% YOY.
As of December 31, 2021, total cash and investment balance was at ₹ 2,523 Cr.

Business Update

1. During the quarter, the company added 5,833 paying subscribers, closing the total count at approximately 156,000.
2. Unique business inquiries is stood at 23 million
3. Average matchmaking for unique business inquiry reduced to 5.3x as against 6.3x

4. The company strengthened its value proposition in the accounting software space by acquiring 100% stake in Busy Infotech Private Limited for INR 500 crores in cash

5. Busy was founded in 1997 and currently is one of the largest accounting software companies in the Indian market with over 2 lakh users. The business is cash positive with a revenue of ₹42.4 crores and PAT of ₹11 crores in FY21.

6. Vyapar, one of their invested companies, offering mobile accounting software, had announced the Series B investment round led by the WestBridge Capital, wherein the company had invested an additional INR 63.5 crores and raised their stake from 26% to 27%.

7. Company acquired 7.7% stake for ₹ 32 crores in Mynd Solutions which runs M1 exchange and invoice discounting exchange, one of the TReDS platforms as approved by RBI.

8. Also acquired 26% stake for ₹13 crores in EasyEcom, which offers AI-driven omni-channel inventory and warehouse management solutions to D2C e-commerce merchants.

9. Expenses have increased primarily in the manpower costs due to increase in headcounts and rerating of salaries across the markets and our investments behind growth.
Company invested ₹7.5 crores into Legistify.

Legistify is a litigation tracking and management software.

10. Added 5,800 customers in this particular quarter.
11. Saw 24% growth in collection from customers
12. The Monthly customer addition has been muted over the last 2 years but there has been relief on the churn side.

13. There has been some impact of Omicron in terms of collection, the last 15 days of December as well as the first 15 days of January were impacted.

14. Company added 225 more employees than the previous quarter.

Future Outlook.

1. Company looks forward to continuing building manpower by roughly around 100 employees every quarter.
2. Cost base of ₹110 crores and for the next quarter.
3. The cost would increase in quarter 4 as compared to quarter 3.

5. Company should be able to maintain 38% margins on a yearly basis.
6. Guidance of adding 5000-7000 customers every quarter.
7. Management - “If the entire next year is free of COVID, I'm pretty sure we would be able to get to 15%, 20% customer growth.”

8. Management- “If the company continues to grow over 20%, if our cost grows at 15%, we'll continue to see 1% per quarter margin expansion.”