IndiaMART InterMESH Q1 Results और ग्रोथ को लेकर CEO Dinesh Agarwal का Outlook | ET Now Swadesh

Summary

The video script discusses the financial performance and growth outlook of a company in India. The company has reported a significant increase in revenue and profit, with improvements in margins. The founder and CEO, Mr. Dines Agarwal, highlights the company's customer acquisition strategy, focusing on profitable growth and margin improvement. He also discusses the impact of the COVID-19 pandemic on their business model and the steps taken to adapt, including algorithm changes to reduce customer churn and enhance the platform's engagement with high-value customers. The script also touches on the company's future plans, including product pipeline and potential acquisitions.

Takeaways

• 📈 The company has reported a significant growth in its first quarter results with a focus on profitability and customer acquisition.
• 💹 There has been an increase in revenue and profit margins, with a 23% year-on-year growth in deferred revenue and a 36% year-on-year growth in net profit.
• 📊 The company has seen a slowdown in customer addition and subscription addition, which is a concern that has been acknowledged and is being addressed.
• 🔍 They are focusing on profitable growth, with an emphasis on customer retention and margin improvement in areas where customer retention is better.
• 💼 The management has made changes in the third quarter to improve margin structures, which has resulted in an increase from 24-26% to 36% currently, with expectations to stabilize around 33-34%.
• 🛒 The company is working on algorithm changes to reduce churn and is expecting the effects of these changes to be visible in the next couple of quarters.
• 📊 They are also focusing on introducing more relevant buyers through hyperlocal sellers and are working on category improvements based on learnings from the COVID period.
• 📈 The company's business inquiry has increased by about 15%, indicating positive movement and potential for future growth.
• 🌐 There are plans for new product launches and the company has made a minority investment in IDfy, which plays a significant role in the digital KYC market.
• 📱 The company has launched a mobile app which has been well received in the market, indicating a positive reception for their digital initiatives.
• 📉 The stock has seen a decline and is currently trading below the level of 6, but long-term investors are advised to remain confident as the company sounds confident and is expected to provide safe returns in the market.

Q & A

What is the focus of the discussion in the provided script?

The focus of the discussion is on the financial performance and growth outlook of a company, with an emphasis on its revenue, profit margins, and customer acquisition strategies.

What was the reported growth in the company's revenue and net profit for the sequential basis?

The company reported a growth in revenue of 17% on a year-on-year basis and a net profit growth of 23% on a year-on-year basis.

How has the company's customer base evolved in the recent period?

The company has seen a slowdown in customer addition, with approximately 1500 new customers added in the month discussed in the script.

What strategies has the company adopted to improve profitability and margins?

The company has focused on increasing customer retention and has made changes to its margin structure, aiming to work more in areas where customer retention was better and less in areas where it was lower.

What is the current margin improvement the company has achieved, and what are the expectations for the future?

The company has improved its margins from around 28% to 36% and expects them to stabilize around 33-34% in the coming quarters.

What initiatives has the company taken to enhance customer engagement and reduce dependency on calls?

The company has introduced initiatives such as chatbots and AI to reduce dependency on calls and has also been working on improving the curation of its platform to enhance customer engagement.

What is the company's plan for the next few quarters, and are there any new product launches or acquisitions in the pipeline?

The company has made a minority investment in IDfy, which plays a significant role in the digital KYC space, and is planning to help with their market onboarding and buyer detection. Additionally, the company has increased its stake from 51% to 66% in a line of business that is performing well.

How has the company's approach to customer segmentation and supplier management evolved over time?

The company has been working on deep categorization and supplier management, which is a continuous process. They have learned during the COVID period how to go deeper into a category and improve it, which has led to better curation and a better buyer side.

What is the current market perception of the company, and how has its stock performance been recently?

The market perception of the company is somewhat negative in the short term, with the stock having fallen to level 6. However, long-term indicators do not suggest a significant downturn, and the stock is considered to sound and confident.

What are the short-term and long-term targets for the company's stock, and what are the recommended strategies for investors?

In the short term, the stock might dip to levels around 2880 and 2750. For long-term investors, the stock is considered a safe bet with a slow but steady growth, offering a safe return in the market. The short-term target is around 3200, and the long-term target is 3400.

What are the guest analysts' views on the company's performance and future prospects?

The guest analysts have noted a slow growth in the recent quarter and a slight weakness in the stock, which has fallen. They appreciate the management's efforts but suggest that there might be a need for more changes to improve profitability and customer engagement.