Revenue from operations rose 4% year-on-year (YoY) to Rs 163 crore during the quarter, supported by marginal improvement in realization of existing customers and increase in number of paying subscription suppliers amidst the ongoing COVID-19 pandemic. Consolidated deferred revenue declined marginally by 0.5% to Rs 628 crore in Q2 FY21 from Rs 631 crore in Q2 FY20.

Total expense in the second quarter declined by 32% to Rs 82 crore compared with the same period last year, due to lower manpower and outsourced sales costs (down 29% YoY) and lower other operating expenses (down 41% YoY).

EBITDA surged to Rs 82 crore in Q2 FY21 from Rs 36 crore in Q2 FY20. EBITDA margin was at 50% as on 30 September 2020 as compared to 23% as on 30 September 2019, primarily driven by sustained as well as temporary benefits arising from various cost optimization initiatives undertaken during last six months.

Profit before tax (PBT) surged 83% to Rs 93 crore in Q2 September 2020 over Q2 September 2019. Tax expense declined by 45% YoY to Rs 23 crore in Q2 FY21.

The company registered a traffic growth of 32% YoY with 25.9 crore in Q2 FY21 as compared to 19.6 crore in Q2 FY20. Total business enquiries delivered increased to 17.5 crore from 12.3 crore, a growth of 42%. Supplier storefronts grew to 0.62 crore in Q2 FY21, an increase of 9% YoY and paying subscription suppliers grew to 141 thousand, a growth of 3%.

Consolidated cash flow from operations for the quarter was at Rs 78 crore. Cash and Investments balance stood at Rs 1,045 crore as on 30 September 2020 as compared to Rs 780 crore on 30 September 2019, an increase of 34% YoY.

Commenting on the performance, Dinesh Agarwal, chief executive officer, said: "As we navigate through these unprecedented times and a volatile environment, we are happy to report a moderate financial performance in this quarter. With the pick up in business activity and increasing realization for online adoption by the small and medium businesses, our revenue and customers have shown a positive recovery trend and helped us to maintain healthy margins as well as cashflows."

IndiaMART is India's largest online B2B marketplace for business products and services. The company connects buyers and sellers across product categories and geographies in the country through business enablement solutions.

The scrip fell 1.85% to Rs 4924.85 on the BSE. It traded in the range of 4546.70 and 5150 so far during the day.

On a year-to-date (YTD), the stock has zoomed 138.37% while the benchmark S&P BSE Sensex rose 4.25% during the same period.