Indiamart Intermesh Ltd. · NSE:INDIAMART
Indiamart Intermesh — Q1 FY20 Earnings Presentation
39 slides from Indiamart Intermesh's earnings presentation, Jul 31, 2019
Slide 1: Filing cover letter to stock exchanges
IndiaMART InterMESH Ltd. Advant Navis Business Park, Plot nO.7, 7th Floor, Sector - 142, Naida, UP I Call Us: +91 • 96969696961 indiamart@ E: customercare@indiamart.com Website: www.indiamart.com Date: July 31, 2019 To National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, Bandra Kurla Co
Slide 2: Earnings Presentation Quarter ended June 30, 2019
Earnings Presentation Quarter ended June 30, 2019 India’s largest online B2B marketplace connecting buyers with suppliers
Slide 3: Disclaimer
Disclaimer • This Presentation has been prepared by IndiaMart InterMesh Limited (“IndiaMart”) for investors, shareholders, analysts and other relevant stakeholders, solely for informational purposes. • The information related to business overview, traffic related numbers, products related informatio
Slide 4: Q1 FY20 Results Overview (Consolidated)
Q1 FY 20 Results Overview (Consolidated) Total Income - Rs. 162 Cr 37% YoY Growth Revenue from Operations Deferred Revenue Rs. 147 Cr Rs. 610 Cr 30% Growth YoY 32% Growth of YoY EBITDA Net Profit Rs. 37 Cr Rs. 32 Cr 201% Growth 20% Margin 25% Margin Cash generated from Operating Activities Cash and
Slide 5: Financial Performance – Standalone Basis
Financial Performance – Standalone Basis 4
Slide 6: Revenue From Operations
Revenue From Operations Figures in Rs Crore (Standalone) 28% CAGR 29% YoY 144 497 131 135 120 404 112 309 238 FY16 FY17 FY18 FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 ~40% of revenue contributed by top 10% of paying subscription suppliers 5
Slide 7: Deferred Revenue
Deferred Revenue* Figures in Rs Crore (Standalone) 32% CAGR 32% YoY 585 585 609 491 516 460 423 325 256 61% 61% 60% 59% 60% 61% 61% 64% 63% Mar'16 Mar'17 Mar'18 Mar'19 June'18 Sep'18 Dec'18 Mar'19 June'19 Current 6 * Refers to contract liabilities in the financial statements, i.e. including advances
Slide 8: EBITDA
EBITDA Figures in Rs Crore (Standalone) 80 38 49 28 23 (4) 13 15 FY16 FY17 FY18 FY19 (54) Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 * EBITDA (23%) (1%) 12% 16% Margin 12% 19% 22% 11% 26% 7 * The company has adopted IND AS -116 from 1st April 2019, impacting EBITDA by increase of Rs 4.5 Crores
Slide 9: Margin Leverage
Margin Leverage Total expenses as a % of revenue from operations (Standalone) 123% 88% 89% 81% 78% 101% 74% 88% 84% 59% 60% 71% 65% 58% 56% 53% 53% 51% FY16 FY17 FY18 FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Employee benefit and outsourced sales cost as a % of revenue from operations 8 * The com
Slide 10: Cash generated from Operating Activities
Cash generated from Operating Activities Figures in Rs Crore (Standalone) 158% CAGR 20% YoY 259 99 183 60 56 46 53 59 15 FY16 FY17 FY18 FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 9
Slide 11: Cash and Investments
Cash and Investments* Figures in Rs Crore (Standalone) 65% CAGR 67% YoY 739 678 678 569 498 443 384 152 176 Mar'16 Mar'17 Mar'18 Mar'19 Jun'18 Sep'18 Dec'18 Mar'19 Jun'19 10 * Refers to Cash and Cash Equivalents and investments in Mutual Funds in the financial statements
Slide 12: Financial Performance
Financial Performance Financial Metrics Q1 FY20 Q1 FY19 YoY Change Q4 FY19 QoQ Change Figures in Rs Crore Revenue from Operations 144 112 29% 135 7% (Standalone) Other Income 14 4 238% 10 43% Total Income 159 116 37% 145 9% Manpower Expense 58 51 14% 65 (11%) Outsourced sales cost 15 14 7% 15 (2%) O
Slide 13: Operational Performance
indiamart Operational Performance 12
Slide 14: Indian Supplier Storefronts
Indian Supplier Storefronts Figures in millions 34% CAGR 11% YoY 5.5 5.4 5.4 5.5 5.6 5.1 4.7 3.2 2.3 Mar'16 Mar'17 Mar'18 Mar'19 Jun'18 Sep'18 Dec'18 Mar'19 Jun'19 13
Slide 15: Registered Buyers
Registered Buyers Figures in millions 45% CAGR 33% YoY 83 88 83 78 72 60 66 39 27 Mar'16 Mar'17 Mar'18 Mar'19 Jun'18 Sep'18 Dec'18 Mar'19 Jun'19 14
Slide 16: Paying Subscription Suppliers
Paying Subscription Suppliers Figures in thousands 21% CAGR 17% YoY 130 133 124 130 108 113 119 96 72 Mar'16 Mar'17 Mar'18 Mar'19 Jun'18 Sep'18 Dec'18 Mar'19 Jun'19 15
Slide 17: Annualised Revenue Per Paying Subscribers
Annualised Revenue Per Paying Subscribers Figures in thousands 5% CAGR 10% YoY 37.2 38.4 42.3 41.7 43.6 39.4 40.2 32.8 32.1 Mar'16 Mar'17 Mar'18 Mar'19 Jun'18 Sep'18 Dec'18 Mar'19 Jun'19 Represents Revenue from operations for the period divided by Paying subscription suppliers at period end For the
Slide 18: Traffic
Traffic Figures in millions 40% CAGR 2% YoY 723 198 181 184 173 171 553 326 262 Mar'16 Mar'17 Mar'18 Mar'19 Jun'18 Sep'18 Dec'18 Mar'19 Jun'19 ~76% of total traffic is through mobile 17
Slide 19: Business Enquiries Delivered
Business Enquiries Delivered Figures in millions 57% CAGR 15% YoY 449 118 120 112 113 98 290 157 115 Mar'16 Mar'17 Mar'18 Mar'19 Jun'18 Sep'18 Dec'18 Mar'19 Jun'19 18
Slide 20: Financial Performance – Consolidated Section
Financial Performance – Consolidated Section 19
Slide 21: Financial Performance - Consolidated
Financial Performance - Consolidated Financial Metrics Q1 FY20 Q1 FY19 YoY Change Q4 FY19 QoQ Change Figures in Rs Crore Revenue from Operations 147 113 30% 138 7% (Consolidated) Other Income 14 4 239% 15 (3%) Total Income 162 118 37% 153 6% Manpower Expense 61 53 14% 68 (11%) Outsourced sales cost
Slide 22: Revenue – Legal Entity view
Revenue – Legal Entity view Figures in Rs Crore (Consolidated) Particulars Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Revenue from Operations IndiaMart Intermesh Limited 112 120 131 135 144 Ten Times Online Pvt Ltd 2 2 3 2 2 Pay With Indiamart Pvt Ltd 0.12 0.21 0.27 0.58 0.64 Tolexo Online Pvt Ltd 0.02 0.03
Slide 23: Historical Financial Metrics
Historical Financial Metrics Financial Metrics FY-16 FY-17 FY-18 FY-19 Figures in Rs Crore (Consolidated) Total Income 251 332 430 548 Revenue from Operations 246 318 411 507 EBITDA (126) (54) 47 82 EBITDA Margin (%) (51%) (17%) 11% 16% Adjusted Net Profit for the period* (124) (45) 63 85 Adjusted N
Slide 24: Business Overview
M indiamart Business Overview 23
Slide 25: About Us – India's largest online B2B marketplace
About Us – India’s largest online B2B marketplace 2-way robust discovery marketplace, More connecting buyers & suppliers Buyers Well Diversified More across Industries Product Visits Strong Network effects driving leadership Paying More Customers Enquiries Behavioural data driven Algorithmic matchma
Slide 26: Geographic Presence
Geographic Presence Metros Category II Category III Categorization Delhi NCR, Mumbai, Population >500,00 excluding Population 100,000-500,00 Bengaluru, Hyderabad, the cities covered under Metros excluding the cities covered Kolkata, Ahmedabad, Pune and under Metros and Category II Chennai Number of
Slide 27: IndiaMART: Unique & Differentiated Business Model
IndiaMART: Unique & Differentiated Business Model Call Premium Number Service Enquiry email / SMS Buyer Supplier Submit RFQ RFQ Consumption Verification & Enrichment Recently Launched IndiaMART Lead Management System Behavioural Data Driven Algorithmic Matchmaking
Slide 28: …Driven By Strong Network Effects
…Driven By Strong Network Effects 54% 38% Repeat Buyers Suppliers are Buyers Product Search Buyer Search 88mn 5.6mn Supplier Registered Storefronts Buyers 38mn(1) Monthly Business Enquiries Delivered Note: All figures are as of 30th June, 2019, unless specified. (1) Calculated as (Q1FY20 Quarterly N
Slide 29: Product Features
Product Features Premium RFQ Credits Number Service Lead Management System Priority listing Online Payment Web storefront & Facilitation Enquiry 28
Slide 30: Focus on Mobile
Focus on Mobile 76% Traffic from Mobile Site & App 4.6 App Rating on Playstore by users 29
Slide 31: Competitive Strength – Established Brand In Online B2B Market
Competitive Strength – Established Brand In Online B2B Market Brand and Network Effect Presence in a Highly Fragmented Market ✓ Business enquiries delivered/day ✓ 5.6mn total supplier storefronts in India ✓ 100% organic search ✓ Wide Spread Pan India reach across Geographies ✓ Mostly repeat buyers ✓
Slide 32: Our Presence
Our Presence Amritsar Jalandhar Ludhiana Dehradun Panchkula Ghaziabad Nationwide coverage, 72 branches in Delhi Meerut Gurugram Noida Faridabad 37 cities across India Jaipur Kanpur Jodhpur Lucknow Ahmedabad Corporate Headquarter in Delhi/NCR Bhopal Rajkot Indore Kolkata Jamnagar Baroda Surat Vapi Na
Slide 33: Total Sales & Service Representatives
Total Sales & Service Representatives 8% CAGR 13% YoY 3,536 3,316 3,316 3,142 3,085 3,181 2,921 2,631 2,638 2,631 2,398 2,106 2,249 2,119 2,110 2,178 2,249 1,942 Mar’16 Mar’17 Mar’18 Mar’19 Jun’18 Sep’18 Dec’18 Mar’19 Jun’19 32 Outsourced
Slide 34: Our Strategy
Our Strategy Improve Supplier Engagement ⚫ Fintech ⚫ SAAS Brands Strategy ⚫ Focus on on-boarding Large and Medium Enterprises Core SME Business ⚫ Focus on expanding buyer and supplier network 33
Slide 35: Other Information
indiamart Other Information 34
Slide 36: Our Shareholding Structure
Our Shareholding Structure As on July 03, 2019 Others 17.51% Mutual Funds, Banks, Alternate Investment Funds 6.92% Promoters and Promoter Group 52.61% Foreign Institutions and Portfolio Investors 22.96% Total shares outstanding as on July 03, 2019 - 28,774,280 35
Slide 37: Senior Management Team
Senior Management Team Dinesh Chandra Agarwal Brijesh Agarwal Managing Director Whole-Time Director ⚫ Co-founded IndiaMART ⚫ Founded IndiaMART ⚫ Master’s degree in management science from ⚫ Bachelor’s in Computer Science and engineering from HBTI, Kanpur University of Lucknow and a PGDM from Univers
Slide 38: Independent and Non-Executive Directors
Independent and Non-Executive Directors Dhruv Prakash Rajesh Sawhney Non Executive Director Independent Director ⚫ Master’s degree from Meerut University and PDGM from ⚫ Bachelor’s degree in engineering from University of Delhi IIM, Ahmedabad and master’s degree in management studies from University
Slide 39: Corporate Office
Corporate Office IndiaMART InterMESH Ltd. 7th Floor, Advant-Navis Business Park, Plot No-7, Sector-142, Noida, Uttar Pradesh, Pin – 201 305, India T: +91-120-6777800 Registered Office: 1st Floor, 29-Daryaganj, Netaji Subash Marg, Delhi – 110002. CIN : U74899DL1999PLC101534