Indiamart Intermesh Ltd. · NSE:INDIAMART
Indiamart Intermesh — Q4 FY2020 Earnings Presentation
77 slides from Indiamart Intermesh's earnings presentation, May 12, 2020
Slide 1: Cover letter to stock exchanges
6th floor, ~~~:ra2~A~~!!hn!~!~!~~s~etr~;, I Plot No.22, Sec 135, Noida-201305, U.P. Call Us: +91 - 9696969696 indiamart E: customercare@indiamart.com Website: www.indiamart.com Date: May 12, 020 To The Manager - Listing BSE Limited (BSE: 542726) The Manager - l!.isting I National Stock ~xchange of I
Slide 2: Quarter Ended March 31, 2020
QUARTER ENDED MARCH 31, 2020 IndiaMART InterMESH LTD. India’s largest online B2B marketplace connecting buyers with suppliers
Slide 3: Table of Contents
Table of Contents Diesel Generator 06 BUSINESS OVERVIEW 23 O P E R AT I O N A L P E R F O R M A N C E 33 PRODUCT OVERVIEW 42 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 69 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: FY20 Results Overview (Consolidated)
FY20 Results Overview (Consolidated) Total Income ₹ 707 Cr 29% Revenue from Operations EBITDA Deferred Revenue ₹ 639 Cr ₹ 169 Cr ₹ 685 Cr 26% 105 % 17% 26% Margin Cash generated from Net Profit Cash and Investments Operating Activities ₹ 147 Cr ₹ 931 Cr ₹ 261 Cr f r om t e o n r oect r eat ed popcor
Slide 6: Q4 FY20 Results Overview (Consolidated)
Q4 FY20 Results Overview (Consolidated) Total Income ₹ 187 Cr 23% Revenue from Operations EBITDA ₹ 170 Cr ₹ 52 Cr 23% 160 % 31% Margin Net Profit Cash generated from Operating Activities ₹ 44 Cr 57% ₹ 94 Cr 24% Margin 5% Results are basis Consolidated financials and compared against Q4FY19 Calculate
Slide 7: Business Overview
Ash Bricks IndiaMART InterMESH Ltd
Slide 8: 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 7 IndiaMART InterMESH Ltd
Slide 9: Services that Empower Businesses
Services that Empower Businesses Buyers Suppliers Access to diverse set of 24X7 access to buyers and Products and Services RFQ Access to large number of ROI driven cost effective suppliers website Comprehensive product specifications Cloud Telephony Price discovery CRM tools Secure and multiple paym
Slide 10: Machinery Demand Landscape on IndiaMART
Machinery Demand Landscape on IndiaMART 9 IndiaMART InterMESH Ltd
Slide 11: Traditional Marketplace to Online Marketplace
Traditional Marketplace to Online Marketplace Offline discovery Online Discovery, Anytime, Anywhere Price Post RFQ Post RFQ 10 IndiaMART InterMESH Ltd
Slide 12: How RFQ Works
How RFQ Works Buyer Supplier Enrichment & Relevant RFQ Buyer Submits Interaction Broadcasting by Selection by RFQ through CRM IndiaMART Supplier tools 11 IndiaMART InterMESH Ltd
Slide 13: Behavioral Data Driven Algorithmic Matchmaking
Behavioral Data Driven Algorithmic Matchmaking Product Location Buyer Requirement Supplier preferences AI/ML Algorithm Quantity Price 12 IndiaMART InterMESH Ltd
Slide 14: Strong Network Effects
Strong Network Effects 67 Mn Product Listings 100,000+ Categories Product Discovery 6 Mn 102 Mn Supplier Storefronts More More Registered Buyers Suppliers Buyers 35% Suppliers 55% Repeat are Buyers Buyers More Enquiries 39 Mn (1) Monthly Business Enquiries Delivered ~100% Organic Note: All figures a
Slide 15: 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 16: End-To-End Discovery
End-To-End Discovery 15 IndiaMART InterMESH Ltd
Slide 17: 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 18: Nationwide sales and service coverage
Nationwide sales and service coverage Delhi Nationwide Coverage, 85 Branches across 39 cities Ahmedabad Kolkata 3,929 Sales and Service representatives Mumbai Hyderabad Pune Chennai Bengaluru Metro cities Tier II cities 17 IndiaMART InterMESH Ltd
Slide 19: Platform Engagement
Platform Engagement ~100% Organic traffic 4.7 Rating for the app on Google Play store 76% Total traffic through mobile 18 IndiaMART InterMESH Ltd
Slide 20: ROI driven Subscription based Revenue Model
ROI driven Subscription based Revenue Model Platinum Top 10% Key Offerings contributes ~ 40% of Gold revenue 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 21: 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 20 IndiaMART InterMESH Ltd
Slide 22: 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 23: Key Competitive Strengths
Key Competitive Strengths BRAND AND NETWORK DETAILED CATALOGUE EFFECT WITH PRICING • 100% organic search • 67 Mn Listed products • 55% repeat buyers • Product Specifications • 35% suppliers are buyers • Pricing • Photos and Videos EFFICIENCY & PRESENCE IN A HIGHLY EFFECTIVENESS THROUGH FRAGMENTED MA
Slide 24: Operational Performance
Chaff Cutter IndiaMART InterMESH Ltd
Slide 25: Indian Supplier Storefronts
Indian Supplier Storefronts (Figures in Millions) Yearly trends Quarterly trends 27% 8% CAGR YoY 6.0 6.0 5.5 5.9 4.7 5.7 5.6 3.2 5.5 2.3 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'19 Jun'19 Sep'19 Dec'19 Mar'20 24 IndiaMART InterMESH Ltd
Slide 26: Paying Subscription Suppliers
Paying Subscription Suppliers (Figures in Thousands) Yearly trends Quarterly trends 19% 14% CAGR YoY 147 147 130 142 137 108 133 96 130 72 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'19 Jun'19 Sep'19 Dec'19 Mar'20 25 IndiaMART InterMESH Ltd
Slide 27: Live Products Listing
Live Products Listing (Figures in Millions) Yearly trends Quarterly trends 28% 11% CAGR YoY 67 66 67 61 63 62 50 61 33 25 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'19 Jun'19 Sep'19 Dec'19 Mar'20 26 IndiaMART InterMESH Ltd
Slide 28: Annualised Revenue Per Paying Subscriber
Annualised Revenue Per Paying Subscriber (Figures in Rupees Thousands) Yearly trends Quarterly trends 6% 8% CAGR YoY 42.3 45.3 45.0 44.6 37.2 38.4 43.6 32.9 32.1 41.7 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'19 Jun'19 Sep'19 Dec'19 Mar'20 Represents Revenue from operations for the period divided by Pa
Slide 29: Registered Buyers
Registered Buyers (Figures in Millions) Yearly trends Quarterly trends 39% 24% CAGR YoY 102 102 98 83 93 88 60 83 39 27 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'19 Jun'19 Sep'19 Dec'19 Mar'20 28 IndiaMART InterMESH Ltd
Slide 30: Traffic
Traffic* (Figures in Millions) Yearly trends Quarterly trends 30% 5% CAGR YoY 748 723 196 184 188 180 171 553 326 262 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'19 Jun'19 Sep'19 Dec'19 Mar'20 ~76% of traffic is through mobile *Traffic is defined as the number of visits done on the desktop website, mobil
Slide 31: Business Enquiries Delivered
Business Enquiries Delivered (Figures in Millions) Yearly trends Quarterly trends 42% 3% CAGR YoY 464 449 123 113 116 112 112 290 157 115 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'19 Jun'19 Sep'19 Dec'19 Mar'20 30 IndiaMART InterMESH Ltd
Slide 32: Unique Business Enquiries
Unique Business Enquiries* (Figures in Millions) Yearly trends Quarterly trends 35% 1% CAGR YoY 73 74 20 18 18 18 18 53 31 23 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'19 Jun'19 Sep'19 Dec'19 Mar'20 * We consider a buyer posting an enquiry at least once as one unique buyer for that day. If the same buy
Slide 33: Total Sales and Service Representatives
Total Sales and Service Representatives* Yearly trends Quarterly trends 11% 18% CAGR YoY 3,929 3,874 3,917 3,929 3,536 3,316 3,316 2,921 2,631 2,638 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'19 Jun'19 Jun'19 Sep'19 Mar'20 *Includes outsourced and Onroll Sales & Service Representative 32 IndiaMART Inter
Slide 34: Product Overview
mW) indiamart Product Overview 2 IndiaMART InterMESH Ltd
Slide 35: Buyer Journey
Buyer Journey Search Text Search Voice Search Autosuggest Result Search Soda mach Post Requirement Product & Company Details 34 IndiaMART InterMESH Ltd
Slide 36: Buyer Journey
Buyer Journey Specifications Matchmaking Search Post Requirement Product & Company Details Post 35 IndiaMART InterMESH Ltd
Slide 37: Buyer Journey
Buyer Journey Product Company Page Page Search Post Requirement Call & Message Product& & Product Company Details Company Details 36 IndiaMART InterMESH Ltd
Slide 38: Seller Journey
Seller Journey Add/Edit products from here Content Management BuyLeads Lead Manager Pay With IndiaMART 37 IndiaMART InterMESH Ltd
Slide 39: 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 38 IndiaMART InterMESH Ltd
Slide 40: Seller Journey
Seller Journey Content Management Chat History BuyLeads Lead Manager Pay With IndiaMART Add Labels Call Alerts Add Notes & Set Reminders Direct Buyer Callback Send Quote Smart Reply Suggestions 39 IndiaMART InterMESH Ltd
Slide 41: Seller Journey
Seller Journey Content Management BuyLeads Lead Manager Pay With IndiaMART Multiple options 40 IndiaMART InterMESH Ltd
Slide 42: 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 41 IndiaMART InterMESH Ltd
Slide 43: Standalone Basis
Egg Incubator Standalone Basis IndiaMART InterMESH Ltd
Slide 44: Revenue from Operations - Standalone
Revenue from Operations - Standalone (₹ in Crores) Yearly trends Quarterly trends 27% 23% CAGR YoY 624 166 497 161 153 404 144 135 309 238 FY16 FY17 FY18 FY19 FY20 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 ~40% of revenue contributed by top 10% of paying subscription suppliers 43 IndiaMART InterMESH L
Slide 45: Collections from Customer - Standalone
Collections from Customer - Standalone (₹ in Crores) Yearly trends Quarterly trends 24% (1)% CAGR YoY 722 661 204 202 502 173 178 168 377 306 FY16 FY17 FY18 FY19 FY20 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 44 IndiaMART InterMESH Ltd
Slide 46: Deferred Revenue - Standalone
Deferred Revenue* - Standalone (₹ in Crores) Yearly trends Quarterly trends 28% 17% CAGR YoY 684 684 629 647 585 609 585 423 325 256 61% 61% 62% 61% 61% 61% 60% 61% 64% 63% Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'19 Jun'19 Sep'19 Dec'19 Mar'20 Current * Refers to contract liabilities in the financial
Slide 47: EBITDA - Standalone
EBITDA - Standalone (₹ in Crores) Yearly trends Quarterly trends 173 54 80 44 49 38 37 FY16 FY17 FY18 FY19 FY20 15 (4) (54) Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 EBITDA (23%) (1%) 12% 16% 28% 11% 26% 24% 27% 33% Margin * The company has adopted IND AS -116 from 1st April 2019, impacting EBITDA by
Slide 48: EBIT - Standalone
EBIT - Standalone (₹ in Crores) Yearly trends Quarterly trends 152 48 76 38 46 33 32 FY16 FY17 FY18 FY19 FY20 14 (8) (56) Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 EBIT (24%) (2%) 12% 15% 24% 10% 23% 21% 24% 29% Margin 47 IndiaMART InterMESH Ltd
Slide 49: PAT - Standalone
PAT - Standalone (₹ in Crores) Yearly trends Quarterly trends 146 63 40 33 13 18 FY16 FY17 FY18 FY19 FY20 (13) 10 (59) 1 2 (72) Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 PAT (24%) (4%) (18)% 2% 21% 12% 21% 6% 36% 22% Margin Note: 1.Net Profit for the quarter ending September 30, 2019 included one-time
Slide 50: Margin Leverage - Standalone
Margin Leverage - Standalone (Total expenses as a % of revenue from operations Standalone) Yearly trends Quarterly trends 123% 89% 76% 101% 74% 73% 67% 88% 84% 72% 60% 55% 71% 51% 54% 50% 65% 58% 56% 52% FY16 FY17 FY18 FY19 FY20 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Employee benefit and outsourced
Slide 51: Cash Generated From Operating Activities - Standalone
Cash Generated From Operating Activities - Standalone (₹ in Crores ) Yearly trends Quarterly trends 104% (4)% CAGR YoY 259 264 99 95 183 71 56 42 59 15 FY16 FY17 FY18 FY19 FY20 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 50 IndiaMART InterMESH Ltd
Slide 52: Cash And Investments - Standalone
Cash And Investments* - Standalone (₹ in Crores ) Yearly trends Quarterly trends 57% 36% CAGR YoY 920 920 850 773 739 678 678 384 152 176 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'19 Jun'19 Sep'19 Dec'19 Mar'20 • Refers to Cash and Cash Equivalents and investments in Mutual Funds in the financial state
Slide 53: Financial Performance – Standalone
Financial Performance – Standalone (₹ in Crores) YoY QoQ YoY Financial Metrics Q4 FY20 Q4 FY19 Q3 FY20 FY20 FY19 Change Change Change Revenue from Operations 166 135 23% 161 3% 624 497 25% Other Income 17 10 74% 16 5% 68 36 90% Total Income 183 145 26% 177 3% 692 533 30% Manpower and Outsourced Sale
Slide 54: Balance Sheet - Standalone
Balance Sheet - Standalone (₹ in Crores) Assets FY20 FY19 Equity and Liabilities FY20 FY19 PPE1,CWIP1 and Intangible assets, other Total Equity 274.5 160.7 non -current assets 5.5 9.8 Right-of-use asset 80.0 - Investment in subsidiaries and associates 31.6 0.4 Financial liabilities Financial assets
Slide 55: Consolidated Section
Teak Wood Logs Consolidated Section IndiaMART InterMESH Ltd
Slide 56: Financial Performance – Consolidated
Financial Performance – Consolidated (₹ in Crores) YoY QoQ YoY Financial Metrics Q4 FY20 Q4 FY19 Q3 FY20 FY20 FY19 Change Change Change Revenue from Operations 170 138 23% 165 3% 639 507 26% Other Income 17 15 16% 17 4% 69 41 67% Total Income 187 153 23% 181 3% 707 548 29% Manpower and Outsourced Sa
Slide 57: Balance Sheet - Consolidated
Balance Sheet - Consolidated (₹ in Crores) Assets FY20 FY19 Equity and Liabilities FY20 FY19 PPE1,CWIP1, Intangible assets, other non- 7.6 10.0 Total Equity 275.1 159.9 current assets Right-of-use asset 80.0 - Investment in subsidiaries and associates 29.6 - Financial liabilities Financial assets Le
Slide 58: Revenue – Legal Entity View
Revenue – Legal Entity View (₹ in Crore) Particulars Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Revenue from Operations IndiaMart Intermesh Ltd 135 144 153 161 166 Ten Times Online Pvt Ltd 2 2 3 4 4 Pay With IndiaMART Pvt Ltd 0.6 0.6 0.7 0.8 0.8 Tolexo Online Pvt Ltd 0.1 0.1 0.0 0.1 0.1 138 147 157 165
Slide 59: 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 60: Pharmaceutical Drug & Medical Care
Pharmaceutical Drug & Medical Care IndiaMART InterMESH Ltd
Slide 61: Pay With IndiaMART Private Limited
Pay With IndiaMART Private Limited Facilitates online collections via various online modes such as credit cards, debit cards, 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 sellers
Slide 62: 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 61 IndiaMART InterMESH Ltd
Slide 63: 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 64: 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 65: Team Overview
Lathe machine w IndiaMART InterMESH Ltd
Slide 66: 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 67: 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 68: Stronger Together
Stronger Together ~ 22% Of Our Employees Are 3,307 Employees 21% Employees with 5+ years Women 67 IndiaMART InterMESH Ltd
Slide 69: Shareholding Pattern
Shareholding Pattern Few of the Foreign Portfolio Investors and Total Shares Outstanding as on Foreign Companies holding 1% or more of March 31, 2020 - 28,919,820 the total number of shares • Steadview Capital Mauritius Limited 16 % • Saif India Vi Fii Holdings Limited 3% • Kuwait Investment Authori
Slide 70: COVID 19 Update
N95 Mask IndiaMART InterMESH Ltd
Slide 71: COVID 19 - Immediate Challenges
COVID 19 - Immediate Challenges Employee Safety Business Mortality Business Continuity Fall in demand 70 IndiaMART InterMESH Ltd
Slide 72: Impact on our business
Impact on our business 1. Business Mortality- 10-20% of paying subscriber base 2. Traffic impacted by 50% 3. Non conducive market for new sales 4. Severe impact on cash generated from operations 71 IndiaMART InterMESH Ltd
Slide 73: Measures taken by us
Measures taken by us 1. Enabled remote working to ensure business continuity 2. Customer retention measures • Discounts • Relaxed payment terms 3. Buildup of emerging new Categories • Sanitization, Safety, Hospital, Pharmaceutical, Food Supply 4. Digital/Tele based sales 72 IndiaMART InterMESH Ltd
Slide 74: Cost Optimization Initiatives
Cost Optimization Initiatives 1. Manpower Cost • Not done any layoffs • Appraisals Deferred • No Incentives and Variable pay • Temporary Salary Rationalization 2. Other cost • Cut discretionary spends • Ongoing cost rationalization 73 IndiaMART InterMESH Ltd
Slide 75: Long Term Opportunities
Long Term Opportunities Accelerated internet Openness to online/tele adoption sales Make in India push 74 IndiaMART InterMESH Ltd
Slide 76: Our Edge in these testing times
Our Edge in these testing times Negative working capital driven Strong Balance sheet with by long term subscription Cash Reserves Diversification across Categories & Geographies Brand Awareness 75 IndiaMART InterMESH Ltd
Slide 77: 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
IndiaMART InterMESH — Q4 FY2020 Earnings Presentation on 6ix