Slide 1: Cover letter to stock exchanges
IndiaMART InterMESH Ltd. Advant Navis Business Park, Plot no.7, 7th Floor, Sector - 142, Noida, UP I Call Us: +91 - 96969696961 indiamart® E: customercare@indiamart.com Website: www.indiamart.com Date: January 21, 2020 To· The Manager - Listing BSE Limited (SSE: 542726) The Manager - Listing Nationa
Slide 2: Earnings Presentation: Quarter ended December 31, 2019
Earnings Presentation Quarter ended December 31, 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: Q3 FY20 Results Overview (Consolidated)
Q3 FY20 Results Overview (Consolidated)1 Total Income - Rs. 181 Cr 23% YoY Growth Revenue from Operations Deferred Revenue Rs. 165 Cr Rs. 649 Cr 23% Growth YoY 26% Growth YoY EBITDA Net Profit Rs. 44 Cr Rs. 62 Cr 58% Growth 34% Margin 26% 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 Metro Cities Tier – II Cities Rest of India Categorization Delhi NCR, Mumbai, Population >500,00 excluding ~ 4000 cities in India with Bengaluru, Hyderabad, the cities covered under Metros population < 500000 Kolkata, Ahmedabad, Pune and Chennai Number of Cities 8 69 ~ 4000 Buyer
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 54% 36% Repeat Buyers Suppliers are Buyers Product Search Buyer Search 98mn 5.9mn Supplier Registered Storefronts Buyers 37mn(1) Monthly Business Enquiries Delivered Note: All figures are as of 31st Dec, 2019 (1) Calculated as (Q3FY20 Quarterly Number)/3. 8
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 77% 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 ✓ 5.9mn 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, 83 branches in Delhi Meerut Gurugram Noida Faridabad Agra 39 cities across India Jaipur Kanpur Guwahati Jodhpur Lucknow Ahmedabad Corporate Headquarter in Delhi/NCR Bhopal Rajkot Indore Kolkata Jamnagar
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 23% YoY 161 153 497 144 131 135 404 309 238 FY16 FY17 FY18 FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 ~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 25% YoY 629 647 585 609 585 516 423 325 256 60% 61% 62% 61% 61% 61% 61% 64% 63% Mar'16 Mar'17 Mar'18 Mar'19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Current 16 * Refers to contract liabilities in the financial statements, i.e.
Slide 18: EBITDA
EBITDA Yearly Trends Quarterly Trends Rs Crore (Standalone) 80 44 38 37 49 28 FY16 FY17 FY18 FY19 15 (4) (54) Q3FY19 Q4FY19 Q1FY20* Q2FY20* Q3FY20* EBITDA (23%) (1%) 12% 16% Margin 22% 11% 26% 24% 27% 17 * The company has adopted IND AS -116 from 1st April 2019, impacting EBITDA by increase of Rs 4.
Slide 19: EBIT
EBIT Yearly Trends Quarterly Trends Rs Crore (Standalone) 76 38 46 33 32 27 FY16 FY17 FY18 FY19 14 (8) (56) Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 EBIT (24%) (2%) 12% 15% Margin 21% 10% 23% 21% 24% 18
Slide 20: Margin Leverage
Margin Leverage Yearly Trends Quarterly Trends Total expenses as a % of revenue from operations (Standalone) 89% 123% 78% 74% 76% 73% 101% 88% 84% 60% 55% 53% 51% 54% 71% 65% 58% 56% FY16 FY17 FY18 FY19 Q3FY19 Q4FY19 Q1FY20 * Q2FY20 * Q3FY20 * Employee benefit and outsourced sales cost as a % of rev
Slide 21: PAT
PAT Yearly Trends Quarterly Trends Rs Crore (Standalone) 63 13 33 29 FY16 FY17 FY18 FY19 (13) 18 (59) 10 (72) Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 EPS (32.1) (7.1) (37.8) 4.9 Rs. 10.1 6.3 11.6 3.3 21.9 Note: Net Profit for the quarter ending December 2019 included Deferred Tax credit of Rs 22.9 Crore
Slide 22: Cash generated from Operating Activities
Cash generated from Operating Activities Yearly Trends Quarterly Trends Rs Crore (Standalone) 158% CAGR 18% YoY 259 99 183 71 60 56 42 59 15 FY16 FY17 FY18 FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 21
Slide 23: Cash and Investments
Cash and Investments1 Yearly Trends Quarterly Trends Rs Crore (Standalone) 65% CAGR 50% YoY 850 739 773 678 678 569 384 152 176 Mar'16 Mar'17 Mar'18 Mar'19 Dec'18 Mar'19 Jun'19 Sep'19 2 Dec'19 1. Refers to Cash and Cash Equivalents and investments in Mutual Funds in the financial statements 22 2. Du
Slide 24: Financial Performance
Financial Performance Rs Crore Financial Metrics Q3 FY20 Q3 FY19 YoY Change Q2 FY20 QoQ Change 9M FY20 9M FY19 YoY Change Revenue from Operations 161 131 23% 153 5% 458 362 26% (Standalone) Other Income 16 13 24% 20 (19%) 51 26 96% Total Income 177 144 23% 173 2% 509 388 31% Manpower Expense 68 55 2
Slide 25: Operational Performance
indiamart Operational Performance 24
Slide 26: Indian Supplier Storefronts
Indian Supplier Storefronts Yearly Trends Quarterly Trends Figures in Millions 34% CAGR 8% YoY 5.5 5.9 4.7 5.7 5.6 3.2 5.5 2.3 5.4 Mar'16 Mar'17 Mar'18 Mar'19 Dec'18 Mar'19 Jun'19 Sep'19 Dec'19 25
Slide 27: Registered Buyers
Registered Buyers Yearly Trends Quarterly Trends Figures in Millions 45% CAGR 26% YoY 83 93 98 88 83 60 78 39 27 Mar'16 Mar'17 Mar'18 Mar'19 Dec'18 Mar'19 Jun'19 Sep'19 Dec'19 26
Slide 28: Paying Subscription Suppliers
Paying Subscription Suppliers Yearly Trends Quarterly Trends Figures in thousands 21% CAGR 15% YoY 130 142 108 137 96 133 130 72 124 Mar'16 Mar'17 Mar'18 Mar'19 Dec'18 Mar'19 Jun'19 Sep'19 Dec'19 27
Slide 29: Annualised Revenue Per Paying Subscribers
Annualised Revenue Per Paying Subscribers Quarterly Trends Figures in Rs thousands Yearly Trends 5% CAGR 7% YoY 45.3 37.2 38.4 44.6 32.8 32.1 43.6 42.3 41.7 Mar'16 Mar'17 Mar'18 Mar'19 Dec'18 Mar'19 Jun'19 Sep'19 Dec'19 Represents Revenue from operations for the period divided by Paying subscription
Slide 30: Traffic
Traffic* Yearly Trends Quarterly Trends Figures in Millions 40% CAGR 9% YoY 196 723 188 553 184 326 173 171 262 Mar'16 Mar'17 Mar'18 Mar'19 Dec'18 Mar'19 Jun'19 Sep'19 Dec'19 ~77% of total traffic is through mobile 29 * “Traffic” is defined as number of visits done on the website, mobile website and
Slide 31: Business Enquiries Delivered
Business Enquiries Delivered Yearly Trends Quarterly Trends Figures in Millions 57% CAGR -6% YoY 449 123 120 112 113 112 290 157 115 Mar'16 Mar'17 Mar'18 Mar'19 Dec'18 Mar'19 Jun'19 Sep'19 Dec'19 30
Slide 32: Total Sales & Service Representatives
Total Sales & Service Representatives Yearly Trends Quarterly Trends 8% CAGR 23% YoY 3,316 3,874 3,917 2,921 3,536 2,638 3,181 3,316 2,631 2,631 2,106 2,249 2,398 2,524 2,543 1,942 2,178 2,249 Mar’16 Mar’17 Mar’18 Mar’19 Dec'18 Mar'19 Jun'19 Sep'19 Dec'19 Outsourced 31
Slide 33: Financial Performance – Consolidated Section
Financial Performance – Consolidated Section 32
Slide 34: Financial Performance - Consolidated
Financial Performance - Consolidated Financial Metrics Q3 FY20 Q3 FY19 YoY Change Q2 FY20 QoQ Change 9M FY20 9M FY19 YoY Change Rs Crore Revenue from Operations 165 134 23% 157 5% 469 369 27% (Consolidated) Other Income 17 13 24% 20 (19%) 51 26 96% Total Income 181 147 23% 177 3% 520 396 31% Manpowe
Slide 35: Revenue – Legal Entity view
Revenue – Legal Entity view Rs Crore (Consolidated) Particulars Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Revenue from Operations IndiaMart Intermesh Ltd 131 135 144 153 161 Ten Times Online Pvt Ltd 3 2 2 3 4 Pay With IndiaMART Pvt Ltd 0.27 0.58 0.64 0.67 0.76 Tolexo Online Pvt Ltd 0.05 0.05 0.06 0.05
Slide 36: Historical Financial Metrics
Historical Financial Metrics Rs Crore Financial Metrics FY16 FY17 FY18 FY19 (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% EBIT (129) (59) 44 78 EBIT Margin(%) (53%) (19%) 11% 15% Adjusted Net Profit fo
Slide 37: Other Information
indiamart Other Information 36
Slide 38: Our Shareholding Structure
Our Shareholding Structure Others FII and FPIs holding 1% or more of the total 16% number of shares Mutual Funds, Banks, Alternate Investment Funds 3% Promoters and Promoter Group 52% Foreign Institutions and Portfolio Investors 29% Total shares outstanding as on Dec 31, 2019 - 28,919,820 37
Slide 39: Senior Management Team
Senior Management Team Dinesh Chandra Agarwal Brijesh Agrawal Managing Director and Whole-Time Director Chief Executive Officer ⚫ Co-founded IndiaMART ⚫ Founded IndiaMART ⚫ Master’s degree in management science from ⚫ Bachelor’s in Computer Science and engineering from HBTI, Kanpur University of Luc
Slide 40: 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 41: Corporate Office and Registered 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 40