Indiamart Intermesh Ltd. · NSE:INDIAMART
Indiamart Intermesh — Q2 FY2020 Earnings Presentation
39 slides from Indiamart Intermesh's earnings presentation, Oct 22, 2019
Slide 1: Exchange filing cover letter
IndiaMART InterMESH Ltd. Advant Navis Business Park, Plot no. 7, 7th Floor, Sector - 142, Noida, UP I Gall Us: +91 - 96969696961 indiamart@ E: customercare@indiamart.com Website: www.indiamart.com Date: October 22,2019 To National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, Bandra Kurla
Slide 2: Earnings Presentation Quarter ended September 30, 2019
Earnings Presentation Quarter ended September 30, 2019 India’s largest online B2B marketplace connecting buyers with suppliers 1
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: Q2 FY20 Results Overview (Consolidated)
Q2 FY 20 Results Overview (Consolidated)1 Total Income - Rs. 177 Cr 35% YoY Growth Revenue from Operations Deferred Revenue Rs. 157 Cr Rs. 631 Cr 28% Growth YoY 28% Growth YoY EBITDA Net Profit Rs. 36 Cr Rs. 9 Cr2 61% Growth 5% Margin 23% Margin Cash generated from Operating Activities Cash and Inve
Slide 5: Business Overview
M indiamart Business Overview
Slide 6: 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 7: 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 8: 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 7 Behavioural Data Driven Algorithmic Matchmaking
Slide 9: Driven By Strong Network Effects
…Driven By Strong Network Effects 55% 37% Repeat Buyers Suppliers are Buyers Product Search Buyer Search 93mn 5.7mn Supplier Registered Storefronts Buyers 41mn(1) Monthly Business Enquiries Delivered Note: All figures are as of 30th Sep, 2019, unless specified. (1) Calculated as (Q2FY20 Quarterly Nu
Slide 10: Product Features
Product Features Premium RFQ Credits Number Service Lead Management System Priority listing Online Payment Web storefront & Facilitation Enquiry 9
Slide 11: Focus on Mobile
Focus on Mobile 76% Traffic from Mobile Site & App 4.6 App Rating on Playstore by users 10
Slide 12: Competitive Strength – Leading Brand In Online B2B Market
Competitive Strength – Leading Brand In Online B2B Market Brand and Network Effect Presence in a Highly Fragmented Market ✓ Business enquiries delivered/day ✓ 5.7mn total supplier storefronts in India ✓ 100% organic search ✓ Wide Spread Pan India reach across Geographies ✓ Mostly repeat buyers ✓ Mos
Slide 13: Our Presence
Our Presence Amritsar Jalandhar Ludhiana Ambala Dehradun ChandigarhGhaziabad Nationwide coverage, 77 branches in Delhi Meerut Gurugram Noida Faridabad 37 cities across India Jaipur Kanpur Guwahati Jodhpur Lucknow Ahmedabad Corporate Headquarter in Delhi/NCR Bhopal Rajkot Indore Kolkata Jamnagar Baro
Slide 14: 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 13
Slide 15: Financial Performance – Standalone Basis
Financial Performance – Standalone Basis 14
Slide 16: Revenue From Operations
Revenue From Operations Yearly Trends Quarterly Trends Rs Crore (Standalone) 28% CAGR 27% YoY 153 497 144 131 135 404 120 309 238 FY16 FY17 FY18 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 ~40% of revenue contributed by top 10% of paying subscription suppliers 15
Slide 17: Deferred Revenue
Deferred Revenue* Yearly Trends Quarterly Trends Rs Crore (Standalone) 32% CAGR 28% YoY 629 585 585 609 491 516 423 325 256 61% 61% 60% 61% 60% 61% 61% 64% 63% Mar'16 Mar'17 Mar'18 Mar'19 Sep'18 Dec'18 Mar'19 Jun'19 Sep'19 Current 16 * Refers to contract liabilities in the financial statements, i.e.
Slide 18: EBITDA
EBITDA Yearly Trends Quarterly Trends Rs Crore (Standalone) 38 37 80 49 28 23 (4) 15 FY16 FY17 FY18 FY19 (54) Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 * Q2 FY20* EBITDA (23%) (1%) 12% 16% Margin 19% 22% 11% 26% 24% 17 * The company has adopted IND AS -116 from 1st April 2019, impacting EBITDA by increase of
Slide 19: Margin Leverage
Margin Leverage Yearly Trends Quarterly Trends Total expenses as a % of revenue from operations (Standalone) 89% 123% 81% 78% 74% 76% 101% 88% 84% 60% 55% 65% 53% 53% 51% 71% 58% 56% FY16 FY17 FY18 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20* Q2 FY20* Employee benefit and outsourced sales cost as a % of re
Slide 20: Cash generated from Operating Activities
Cash generated from Operating Activities Yearly Trends Quarterly Trends Rs Crore (Standalone) 158% CAGR -21% YoY 259 99 183 60 56 53 42 59 15 FY16 FY17 FY18 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 19
Slide 21: Cash and Investments
Cash and Investments1 Yearly Trends Quarterly Trends Rs Crore (Standalone) 65% CAGR 55% YoY 678 739 773 678 569 498 384 152 176 Mar'16 Mar'17 Mar'18 Mar'19 Sep'18 Dec'18 Mar'19 Jun'19 Sep'192 1. Refers to Cash and Cash Equivalents and investments in Mutual Funds in the financial statements 20 2. Dur
Slide 22: Financial Performance
Financial Performance Financial Metrics Q2 FY20 Q2 FY19 YoY Change Q1 FY20 QoQ Change H1 FY20 H1 FY19 YoY Change Rs Crore Revenue from Operations 153 120 27% 144 6% 297 231 28% (Standalone) Other Income 20 9 139% 14 43% 35 13 172% Total Income 173 128 35% 159 9% 332 244 36% Manpower Expense 66 49 34
Slide 23: Operational Performance
indiamart Operational Performance 22
Slide 24: Indian Supplier Storefronts
Indian Supplier Storefronts Yearly Trends Quarterly Trends Figures in Millions 34% CAGR 6% YoY 5.5 5.5 5.6 5.7 5.4 5.4 4.7 3.2 2.3 Mar'16 Mar'17 Mar'18 Mar'19 Sep'18 Dec'18 Mar'19 Jun'19 Sep'19 23
Slide 25: Registered Buyers
Registered Buyers Yearly Trends Quarterly Trends Figures in Millions 45% CAGR 29% YoY 83 88 93 83 78 72 60 39 27 Mar'16 Mar'17 Mar'18 Mar'19 Sep'18 Dec'18 Mar'19 Jun'19 Sep'19 24
Slide 26: Paying Subscription Suppliers
Paying Subscription Suppliers Yearly Trends Quarterly Trends Figures in thousands 21% CAGR 15% YoY 130 133 137 124 130 108 119 96 72 Mar'16 Mar'17 Mar'18 Mar'19 Sep'18 Dec'18 Mar'19 Jun'19 Sep'19 25
Slide 27: Annualised Revenue Per Paying Subscribers
Annualised Revenue Per Paying Subscribers Yearly Trends Quarterly Trends Figures in thousands 5% CAGR 11% YoY 38.4 43.6 44.6 37.2 40.2 42.3 41.7 32.8 32.1 Mar'16 Mar'17 Mar'18 Mar'19 Sep'18 Dec'18 Mar'19 Jun'19 Sep'19 Represents Revenue from operations for the period divided by Paying subscription s
Slide 28: Traffic
Traffic* Yearly Trends Quarterly Trends Figures in Millions 40% CAGR -1% YoY 723 198 196 184 173 171 553 326 262 Mar'16 Mar'17 Mar'18 Mar'19 Sep'18 Dec'18 Mar'19 Jun'19 Sep'19 ~76% of total traffic is through mobile 27 * “Traffic” is defined as number of visits done on the website, mobile website an
Slide 29: Business Enquiries Delivered
Business Enquiries Delivered Yearly Trends Quarterly Trends Figures in Millions 57% CAGR 4% YoY 118 120 123 449 112 113 290 157 115 Mar'16 Mar'17 Mar'18 Mar'19 Sep'18 Dec'18 Mar'19 Jun'19 Sep'19 28
Slide 30: Total Sales & Service Representatives
Total Sales & Service Representatives Yearly Trends Quarterly Trends 8% CAGR 26% YoY 3,874 3,536 3,316 3,085 3,181 3,316 2,921 2,631 2,638 2,631 2,524 2,106 2,249 2,178 2,249 2,398 1,942 2,110 Mar’16 Mar’17 Mar’18 Mar’19 Sep'18 Dec'18 Mar'19 Jun'19 Sep'19 Outsourced 29
Slide 31: Financial Performance – Consolidated Section
Financial Performance – Consolidated Section 30
Slide 32: Financial Performance - Consolidated
Financial Performance - Consolidated Financial Metrics Q2 FY20 Q2 FY19 YoY Change Q1 FY20 QoQ Change H1 FY20 H1 FY19 YoY Change Rs Crore Revenue from Operations 157 122 28% 147 6% 304 236 29% (Consolidated) Other Income 20 9 139% 14 42% 35 13 172% Total Income 177 131 35% 162 10% 339 249 36% Manpowe
Slide 33: Revenue – Legal Entity view
Revenue – Legal Entity view Rs Crore (Consolidated) Particulars Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Revenue from Operations IndiaMart Intermesh Limited 120 131 135 144 153 Ten Times Online Pvt Ltd 2 3 2 2 3 Pay With Indiamart Pvt Ltd 0.21 0.27 0.58 0.64 0.67 Tolexo Online Pvt Ltd 0.03 0.05 0.05 0.06
Slide 34: Historical Financial Metrics
Historical Financial Metrics Financial Metrics FY-16 FY-17 FY-18 FY-19 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 Net Profit M
Slide 35: Other Information
indiamart Other Information 34
Slide 36: Our Shareholding Structure
Our Shareholding Structure As on Sep 30, 2019 Others 16.87% Mutual Funds, Banks, Alternate Investment Funds 3.59% Promoters and Promoter Group 52.34% Foreign Institutions and Portfolio Investors 27.20% Total shares outstanding as on Sep 30, 2019 - 28,919,820 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 38
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