Indiamart Intermesh to consider share buyback on July 20; stock up 5%

Indiamart Intermesh on Monday said its board members would meet on July 20 to consider a share buyback proposal. Indiamart Intermesh had earlier suggested that it would consider and approve audited standalone and consolidated financial results for the June quarter on July 20.

The window for trading in the company's equity shares has already been closed from Saturday, July 1 till the expiry of forty-eight (48) hours after the declaration of the financial results of the company for the quarter ended June 30, Indiamart Intermesh told BSE.

The stock rose 5.18 per cent to hit a high of Rs 2,997.20 on BSE. The stock hit a 52-week high of Rs 3,050.65 on May 5.

June was a seasonally weak quarter for Indiamart Intermesh. "We factor in weak seasonality for Jun quarter and expect 8,000 paying supplier additions (9,000 in March quarter). We expect 27 per cent YoY growth on continued growth momentum. We expect Ebitda margin to expand 190 bps QoQ and be flat YoY to 28 per cent. Following the reset in FY23, the crucial aspect to monitor for Indiamart would be the expansion of operating margin," Elara Securities said in its Q1 preview note.

This brokerage sees Q1 profit for Indiamart at Rs 72.60 crore, up 48.4 per cent YoY. It sees sales at Rs 270.20 crore, up 26.7 per cent YoY.

Kotak Institutional Equities, which sees Indiamart's profit at Rs 77.20 crore, said it is modelling in a 25 per cent YoY growth in revenue on the back of 17 per cent YoY growth in paying suppliers base and 6 per cent YoY growth in average revenue per user (ARPU).

"Expect 90 bps QoQ improvement in Ebitda margin of 27 per cent on account of positive operating leverage but 100 bps lower YoY due to higher investments in sales over the past year," it said.

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