Indiamart Intermesh Ltd. · NSE:INDIAMART
Indiamart Intermesh — Q2 FY21 Earnings Presentation
69 slides from Indiamart Intermesh's earnings presentation, Nov 9, 2020
Slide 1: Cover letter to stock exchanges
IndiaMART InterMESH Ltd. I I 6th floor, Tower 2, Assotech Business Cresterra, Plot No.22, Sec 135, Noida-201305, U.P. Call Us: +91 - 9696969696 indiamart@ E: customercare@indiamart.com Website: www.indiamart.com Date: November 09, 2020 To BSE Limited (BSE: 542726) National Stock Exchange ofIndia Lim
Slide 2: Quarter Ended September 30, 2020
QUARTER ENDED SEPTEMBER 30, 2020 IndiaMART InterMESH LTD. India’s largest online B2B marketplace connecting buyers with suppliers
Slide 3: Table of Contents
Table of Contents Diesel Generator 05 BUSINESS OVERVIEW 22 O P E R AT I O N A L P E R F O R M A N C E 32 PRODUCT OVERVIEW 41 F I N AN C I AL P E R F O R MAN C E 64 T E AM O V E RV I E W C O V I D 1 9 U P D AT E IndiaMART InterMESH IndiaMART InterMESH Ltd Ltd
Slide 4: Safe Harbour
Safe Harbour Harbour Crane • 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 re
Slide 5: Q2FY21 Results Overview (Consolidated)
Q2FY21 Results Overview (Consolidated) Total Income ₹ 181 Cr 2% Revenue from Operations EBITDA Deferred Revenue ₹ 163 Cr ₹ 82 Cr ₹ 628 Cr 4% 125% 0.4% 50% Margin Cash generated from Net Profit Cash and Investments Operating Activities ₹ 70 Cr ₹ 1,045 Cr ₹ 78 Cr f r om t e o n r oect r eat ed popcor
Slide 6: Business Overview
Ash Bricks IndiaMART InterMESH Ltd
Slide 7: India's Largest Online B2B Marketplace
India’s Largest Online B2B Marketplace Large and Strong Well Growing Network Diversified Behavioral Subscription Addressable 2-way Effects Market data driven based revenue discovery Algorithmic model with marketplace matchmaking negative working capital 6 IndiaMART InterMESH Ltd
Slide 8: Services that Empower Businesses
Services that Empower Businesses Buyers Suppliers Access to diverse set of Products and Suppliers Access to buyer RFQ Price discovery Web Storefront Comprehensive specifications Cloud Telephony Multiple payment options CRM tools 7 IndiaMART InterMESH Ltd
Slide 9: Machinery Demand Landscape on IndiaMART
Machinery Demand Landscape on IndiaMART 8 IndiaMART InterMESH Ltd
Slide 10: Traditional Marketplace to Online Marketplace
Traditional Marketplace to Online Marketplace Offline discovery Online Discovery, Anytime, Anywhere Price Post RFQ Post RFQ 9 IndiaMART InterMESH Ltd
Slide 11: How RFQ Works
How RFQ Works Buyer Supplier Enrichment & Relevant RFQ Buyer Submits Interaction Broadcasting by Selection by RFQ through CRM IndiaMART Supplier tools 10 IndiaMART InterMESH Ltd
Slide 12: Behavioral Data Driven Algorithmic Matchmaking
Behavioral Data Driven Algorithmic Matchmaking Product Location Buyer Requirement Supplier preferences AI/ML Algorithm Quantity Price 11 IndiaMART InterMESH Ltd
Slide 13: Strong Network Effects
Strong Network Effects 69 Mn Product Listings 100,000+ Categories Product Discovery 6.2 Mn 113 Mn Supplier Storefronts More More Registered Buyers Suppliers Buyers 36% Suppliers 61% Repeat are Buyers Buyers More Enquiries 58 Mn (1) Monthly Business Enquiries Delivered ~100% Organic Note: All figures
Slide 14: Well Diversified Across 100,000+ Categories
Well Diversified Across 100,000+ Categories Consumer Electronics Construction Industrial & Industrial Plants, Construction Raw Apparel, Clothing & Packaging Material, Electrical Equipment & Household Machinery, Building Engineering Products, Machinery & Material Garments Supplies & Machines and Supp
Slide 15: End-To-End Discovery
End-To-End Discovery 14 IndiaMART InterMESH Ltd
Slide 16: Diversified Across Geographies
Diversified Across Geographies Paying Subscription Buyer % Metro Cities (8) Suppliers % Delhi NCR, Mumbai, Bengaluru, Hyderabad, Kolkata, Ahmedabad, Pune and Chennai 61% Tier II Cities (69) Population > 500,000 excluding the cities covered under Metros Rest of India (~4000) ~4000 cities in India wit
Slide 17: Nationwide sales and service coverage
Nationwide sales and service coverage Delhi Ahmedabad Physical presence in 47 Kolkata Cities Tele and digital presence Mumbai Hyderabad Pune in 1000+ Cities Chennai Bengaluru Metro cities Tier II cities 16 IndiaMART InterMESH Ltd
Slide 18: Platform Engagement
Platform Engagement ~100% Organic traffic 4.7 Rating for the app on Google Play store 82% Total traffic through mobile 17 IndiaMART InterMESH Ltd
Slide 19: ROI driven Subscription based Revenue Model
ROI driven Subscription based Revenue Model Top 10% contributes ~ 41% of Platinum revenue Key Offerings Gold Subscription contributes ~ 95% of Web storefront Cloud Revenue from Telephony Silver operations Annual /Multi Year Priority listing RFQ Selection Credits Silver Monthly CRM Tools Online Payme
Slide 20: Constant Innovation and Technology Focus
Constant Innovation and Technology Focus 2009 2013 2017 Request for Price Payment Program Quotation Discovery Protection Voice, Video, Indic, AI/ML 2010 2015 2018 Cloud Telephony Behavioral CRM Matchmaking 19 IndiaMART InterMESH Ltd
Slide 21: Cloud Telephony
Cloud Telephony Suppliers Buyers ➢ Map Multiple Numbers ➢ Reward Supplier ➢ Instant Connect ➢ Missed Call notification Responsiveness ➢ All calls are answered ➢ Reduction in Calls from ➢ Ability to track call and ➢ Call Back from Suppliers Sellers/ Tele measure ROI in case of Missed Marketers ➢ Bran
Slide 22: Key Competitive Strengths
Key Competitive Strengths BRAND AND NETWORK DETAILED CATALOGUE EFFECT WITH PRICING • 100% organic search • 69 Mn Listed products • 61% repeat buyers • Product Specifications • 36% suppliers are buyers • Pricing • Photos and Videos EFFICIENCY & PRESENCE IN A HIGHLY EFFECTIVENESS THROUGH FRAGMENTED MA
Slide 23: Operational Performance
Chaff Cutter IndiaMART InterMESH Ltd
Slide 24: Indian Supplier Storefronts
Indian Supplier Storefronts (Figures in Millions) Yearly trends Quarterly trends 27% 9% CAGR YoY 6.0 6.2 5.5 6.1 6.0 4.7 5.9 5.7 3.2 2.3 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Sep'19 Dec'19 Mar'20 Jun'20 Sep'20 23 IndiaMART InterMESH Ltd
Slide 25: Paying Subscription Suppliers
Paying Subscription Suppliers (Figures in Thousands) Yearly trends Quarterly trends 19% 3% CAGR YoY 147 147 130 142 141 137 108 133 96 72 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Sep'19 Dec'19 Mar'20 Jun'20 Sep'20 24 IndiaMART InterMESH Ltd
Slide 26: Live Products Listing
Live Products Listing (Figures in Millions) Yearly trends Quarterly trends 28% 9% CAGR YoY 69 68 67 66 67 61 63 50 33 25 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Sep'19 Dec'19 Mar'20 Jun'20 Sep'20 25 IndiaMART InterMESH Ltd
Slide 27: Annualised Revenue Per Paying Subscriber
Annualised Revenue Per Paying Subscriber (Figures in Rupees Thousands) Yearly trends Quarterly trends 6% 3% CAGR YoY 45.3 45.5 45.8 44.6 45.0 42.3 37.2 38.4 32.9 32.1 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Sep'19 Dec'19 Mar'20 Jun'20 Sep'20 Represents Revenue from operations for the period divided by Pa
Slide 28: Registered Buyers
Registered Buyers (Figures in Millions) Yearly trends Quarterly trends 39% 22% CAGR YoY 113 102 107 102 83 98 93 60 39 27 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Sep'19 Dec'19 Mar'20 Jun'20 Sep'20 27 IndiaMART InterMESH Ltd
Slide 29: Traffic
Traffic* (Figures in Millions) Yearly trends Quarterly trends 30% 32% CAGR YoY 748 723 259 553 196 191 188 180 326 262 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Sep'19 Dec'19 Mar'20 Jun'20 Sep'20 ~82% of traffic is through mobile *Traffic is defined as the number of visits done on the desktop website, mobi
Slide 30: Business Enquiries Delivered
Business Enquiries Delivered (Figures in Millions) Yearly trends Quarterly trends 42% 42% CAGR YoY 464 175 449 131 123 290 116 112 157 115 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Sep'19 Dec'19 Mar'20 Jun'20 Sep'20 29 IndiaMART InterMESH Ltd
Slide 31: Unique Business Enquiries
Unique Business Enquiries* (Figures in Millions) Yearly trends Quarterly trends 35% 40% CAGR YoY 73 74 28 53 20 20 18 18 31 23 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Sep'19 Dec'19 Mar'20 Jun'20 Sep'20 * We consider a buyer posting an enquiry at least once as one unique buyer for that day. If the same bu
Slide 32: Product Overview
mW) indiamart Product Overview 2 IndiaMART InterMESH Ltd
Slide 33: Buyer Journey
Buyer Journey Search Text Search Voice Search Autosuggest Result Search Soda mach Post Requirement Product & Company Details 32 IndiaMART InterMESH Ltd
Slide 34: Buyer Journey
Buyer Journey Specifications Matchmaking Search Post Requirement Product & Company Details Post 33 IndiaMART InterMESH Ltd
Slide 35: Buyer Journey
Buyer Journey Product Company Page Page Search Post Requirement Product& & Product Company Details Company Details 34 IndiaMART InterMESH Ltd
Slide 36: Seller Journey
Seller Journey Add/Edit products from here Content Management BuyLeads Lead Manager Pay With IndiaMART 35 IndiaMART InterMESH Ltd
Slide 37: Seller Journey
Seller Journey Content Management BuyLeads Lead Manager Pay With IndiaMART Buyer Details Available Post BuyLead Purchase Click on Contact Buyer Now to select RFQ 36 IndiaMART InterMESH Ltd
Slide 38: Seller Journey
Seller Journey Content Management Chat History BuyLeads Lead Manager Lead Manager Call Alerts Pay With IndiaMART Add Labels Add Notes & Set Reminders Direct Buyer Callback Smart Reply Suggestions Send Quote 37 IndiaMART InterMESH Ltd
Slide 39: Seller Journey
Seller Journey Content Management BuyLeads Lead Manager Pay With IndiaMART Multiple options 38 IndiaMART InterMESH Ltd
Slide 40: Strategic Outlook
Strategic Outlook 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 39 IndiaMART InterMESH Ltd
Slide 41: Standalone Basis
Egg Incubator Standalone Basis IndiaMART InterMESH Ltd
Slide 42: Revenue from Operations - Standalone
Revenue from Operations - Standalone (₹ in Crores) Yearly trends Quarterly trends 27% 6% CAGR YoY 624 166 161 162 497 153 151 404 309 238 FY16 FY17 FY18 FY19 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 ~41% of revenue contributed by top 10% of paying subscription suppliers 41 IndiaMART InterMESH Lt
Slide 43: Collections from Customer - Standalone
Collections from Customer - Standalone (₹ in Crores) Yearly trends Quarterly trends 24% (6)% CAGR YoY 722 661 202 502 173 178 163 377 306 94 FY16 FY17 FY18 FY19 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 42 IndiaMART InterMESH Ltd
Slide 44: Deferred Revenue - Standalone
Deferred Revenue* - Standalone (₹ in Crores) Yearly trends Quarterly trends 28% (0.3)% CAGR YoY 684 684 629 647 626 627 585 423 325 62% 61% 64% 61% 62% 256 61% 61% 61% 64% 63% Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Sep'19 Dec'19 Mar'20 Jun'20 Sep'20 Current * Refers to contract liabilities in the financ
Slide 45: EBITDA - Standalone
EBITDA - Standalone (₹ in Crores) Yearly trends Quarterly trends 173 80 83 75 49 54 44 37 FY16 FY17 FY18 FY19 FY20 (4) (54) Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 EBITDA (23%) (1%) 12% 16% 28% 24% 27% 33% 50% 51% Margin The company has adopted IND AS -116 from 1st April 2019, impacting EBITDA by in
Slide 46: EBIT - Standalone
EBIT - Standalone (₹ in Crores) Yearly trends Quarterly trends 152 76 79 71 46 48 38 32 FY16 FY17 FY18 FY19 FY20 (8) (56) Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 EBIT (24%) (2%) 12% 15% 24% 21% 24% 29% 47% 49% Margin 45 IndiaMART InterMESH Ltd
Slide 47: PAT - Standalone
PAT - Standalone (₹ in Crores) Yearly trends Quarterly trends 146 76 74 63 13 40 FY16 FY17 FY18 FY19 FY20 (13) 10 (59) 1 2 (72) Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 PAT (24%) (4%) (18)% 2% 21% 6% 36% 22% 41% 41% Margin Note: 1.Net Profit for the quarter ending September 30, 2019 included one-time
Slide 48: Margin Leverage - Standalone
Margin Leverage - Standalone (Total expenses as a % of revenue from operations Standalone) Yearly trends Quarterly trends 123% 76% 73% 67% 101% 88% 84% 50% 49% 72% 55% 54% 50% 71% 65% 58% 56% 38% 37% 52% FY16 FY17 FY18 FY19 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Employee benefit and outsourced
Slide 49: Cash Generated From Operating Activities - Standalone
Cash Generated From Operating Activities - Standalone (₹ in Crores ) Yearly trends Quarterly trends 104% 86% YoY CAGR 259 264 183 95 79 71 42 59 15 5 FY16 FY17 FY18 FY19 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 48 IndiaMART InterMESH Ltd
Slide 50: Cash And Investments - Standalone
Cash And Investments* - Standalone (₹ in Crores ) Yearly trends Quarterly trends 57% 35% CAGR YoY 1,042 920 945 920 850 773 678 384 152 176 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Sep'19 Dec'19 Mar'20 Jun'20 Sep'20 • Refers to Cash and Cash Equivalents and investments in Mutual Funds in the financial sta
Slide 51: Financial Performance – Standalone
Financial Performance – Standalone (₹ in Crores) YoY QoQ YoY Financial Metrics Q2 FY21 Q2 FY20 Q1 FY21 H1 FY21 H1 FY20 Change Change Change Revenue from Operations 162 153 6% 151 7% 313 297 5% Other Income 21 20 3% 33 (37%) 54 35 57% Total Income 183 173 6% 185 (1%) 367 332 11% Manpower and Outsourc
Slide 52: Balance Sheet - Standalone
Balance Sheet - Standalone (₹ in Crores) Assets H1 FY21 FY20 Equity and Liabilities H1 FY21 FY20 PPE1,CWIP1 and Intangible assets, other 4.0 5.5 Total Equity 427.8 274.5 non -current assets Right-of-use asset 71.4 80.0 Investment in subsidiaries and associates 31.4 31.6 Financial liabilities Financi
Slide 53: Consolidated Section
Teak Wood Logs Consolidated Section IndiaMART InterMESH Ltd
Slide 54: Financial Performance – Consolidated
Financial Performance – Consolidated (₹ in Crores) YoY QoQ YoY Financial Metrics Q2 FY21 Q2 FY20 Q1 FY21 H1 FY21 H1 FY20 Change Change Change Revenue from Operations 163 157 4% 153 7% 316 304 4% Other Income 18 20 (13%) 34 (47%) 52 35 48% Total Income 181 177 2% 187 (3%) 368 339 9% Manpower and Outs
Slide 55: Balance Sheet – Consolidated
Balance Sheet – Consolidated (₹ in Crores) Assets H1 FY21 FY20 Equity and Liabilities H1 FY21 FY20 PPE1,CWIP1, Intangible assets, other non- 5.8 7.6 Total Equity 421.9 275.1 current assets Right-of-use asset 71.4 80.0 Investment in subsidiaries and associates 29.0 29.6 Financial liabilities Financia
Slide 56: Revenue – Legal Entity View
Revenue – Legal Entity View (₹ in Crore) Particulars Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Revenue from Operations IndiaMart Intermesh Ltd 153 161 166 151 162 Ten Times Online Pvt Ltd 3 4 4 1 0.7 Pay With IndiaMART Pvt Ltd 0.7 0.8 0.8 0.5 0.8 Tolexo Online Pvt Ltd 0.0 0.1 0.1 0.1 0.1 157 165 170 1
Slide 57: Historical Financial Metrics
Historical Financial Metrics (₹ in Crore Consolidated) Financial Metrics FY-16 FY-17 FY-18 FY-19 FY-20 Total Income 251 332 430 548 707 Revenue from Operations 246 318 411 507 639 EBITDA (126) (54) 47 82 169 EBITDA Margin (%) (51%) (17%) 11% 16% 26% EBIT (129) (59) 44 78 148 EBIT Margin (%) (53%) (1
Slide 58: Subsidiaries and Investments
Pharmaceutical Drug & Medical Care IndiaMART InterMESH Ltd
Slide 59: Pay With IndiaMART Private Limited
Pay With IndiaMART Private Limited Facilitates online collections via various online modes such as credit cards, debit cards, UPI,Netbanking etc 100% Buyer Protection Buy Now, Pay At Ease Multiple Payment Options World Class Security Pay with IndiaMART and Buy from premium suppliers and Buy from sel
Slide 60: 10times
10times 10times is used by millions every day to decide which event to go, whom to meet in over 10,000 cities across 150+ countries Helps people discover Builds an amazing Enables events to create relevant events participating experiences amazing experiences 59 IndiaMART InterMESH Ltd
Slide 61: Tolexo Online Private Limited (Pooraa)
Tolexo Online Private Limited (Pooraa) Pooraa brings a simple & easy-to-use system that helps manage business better while offering a world-class ordering experience to customers Inventory Management Customer Management Analytics & Reports Tally Pricing Integration Management Order Management Catalo
Slide 62: Simply Vyapar Apps Private Limited
Simply Vyapar Apps Private Limited Vyapar, a mobile-based business accounting software for small businesses Record Bank Business Data Safety Expenses Accounts Status and Security Receivables Track Business Regular/ and Payable Cash Flow Reports Thermal Printer Delivery GST Cheques GST Challan Invoic
Slide 63: Mobisy Technologies Private Limited
Mobisy Technologies Private Limited Provider of Sales force automation (SFA) and Distributor Management System (DMS) Application Order Distributor BI & Retailer App Management Management Analytics Field Force Claims Vans Sales Retail Execution Management Management Automation & Merchandising Asset T
Slide 64: Team Overview
Lathe machine w IndiaMART InterMESH Ltd
Slide 65: Senior Management Team
Senior Management Team Dinesh Chandra Agarwal Brijesh Agrawal Prateek Chandra Dinesh Gulati Amarinder S. Dhaliwal Managing Director and Chief Whole-time Director Chief Financial Officer Chief Operating Officer Chief Product Officer Executive Officer Education Education Education Education Education
Slide 66: Independent and Non-Executive Directors
Independent and Non-Executive Directors Vivek Narayan Gour Rajesh Sawhney Elizabeth Lucy Chapman Dhruv Prakash Independent Director Independent Director Independent Director Non-executive Director Education Education Education Education • Bac elor’s degree from • Bac elor’s degree in • Chartered Fin
Slide 67: Stronger Together
Stronger Together ~ 23% Of Our Employees Are 2,917 Employees 26% Employees with 5+ years Women 66 IndiaMART InterMESH Ltd
Slide 68: Shareholding Pattern
Shareholding Pattern Institutional investors holding greeter than1% of the total number of shares Total Shares Outstanding as on September 30, 2020 – 29,114,268 • Steadview Capital Mauritius Limited 15% • Artisan International Small-Mid Fund 6% • Kuwait Investment Authority Fund 225 52% • Arisaig Gl
Slide 69: Corporate Office
Corporate Office Tower 2, Assotech Business Cresterra, Floor No.6, Plot No.22, Sec 135, Noida-201305, U.P. Registered Office: 1st Floor, 29-Daryaganj, Netaji Subash Marg, Delhi – 110002. For any queries, please contact: investors@indiamart.com CIN : L74899DL1999PLC101534