Dinesh Agarwal MD and Brijesh Agarwal Whole Time Director of the company addressed the call.

IndiaMART InterMESH is India's largest online aggregator.

It started operating in 1999. The company got listed on BSE and NSE on 4 July 2019.

The management was pleased to report results for the first quarter ending June 2019.

Consolidated Total Income stood at Rs 162 crore, YoY growth of 37% primarily driven by increase in revenue from operations.

Consolidated Revenue from operations grew by 30% on YoY basis due to increase in number of paying subscribers as well as higher realization from existing customers.

It has listed 60 million products in 54 industries in 138000 categories. .

Total business enquiries delivered witnessed an increase to 113 million from 98 million, up 15% yoy, up 11%.

Paying subscription suppliers witnessed an increase to 132.5 thousand from 113 thousand, up 17%.

Supplier storefront grew to 5.6 million from 5.1 million

Consolidated deferred revenue grew 32% from Rs 461 crore in Q1 FYI9 to Rs 610 crore in QI FY20 leading to much better visibility for revenues in future.

Good growth is a result of focus on execution and measures undertaken towards enhancing buyer and supplier experience.

Around 97% of revenue contributed by Indiamart standalone business.

The company is a 2-way robust discovery marketplace, connecting buyers & suppliers.

Ebitda profit stood at Rs 37 crore against a loss of Rs 53 crore.

Q1 of FY 2019 had FETPL expenses which was conversion of CCPS shares into equity shares. This is not there in Q1 of 2020.

The company had strong revenue growth which resulted into higher OPM

OPM grew due to increase in revenue and optimum utilization of resources.

EBITDA numbers are generally to take a guidance from but this quarter is a specifically bumper as last 4-5 quarter revenue growth was 25% but this quarter it is 30%.

Revenue growth of 25% and historical cost growth of about 17-18% should be used to calculate EBITDA going forward.

Can achieve EBITDA of Rs 25-30 crore every quarter.

EBITDA Margin has been constantly improving.

From 1 April AS has been change and lease rental cost has been amortised below EBITDA. So that is why there is such a major improvement in margin. Or else comparable basis EBITDA should be around 21-22% against the reported 25% or so. Due to the adoption of new accounting standard, lease rent was lower by Rs 4.5 crore and there was corresponding increase in depreciation and interest cost.

Other income grew sharply because of increasing cash and cash balance.

In FY 2019 it generated cash of Rs 225 crore.

Total it has Rs 746 crore of cash in Balance Sheet which is leading to higher other income like interest income or income from bonds.

The company had adopted a dividend policy which will be clear in the quarters to come.

Behavioural data driven Algorithmic matchmaking helps the company in 15 match making every second.

It will continue to look at fintech opportunities for partnership, investment of acquisition.

The company gets part of revenues from 1, 2, 3 year subscription. However the revenues are recognized on of the particular year it has been subscribed for. Thus the company even has negative working capital.

The company became cash positive in the last 2 years only.

Because of formalization of economy and implementation of GST it is now more easier to find suppliers and easier to find formalized economy suppliers.

The company has around 1200 field sales force.

Suppliers are persuaded to be a paying customer after they have enjoyed certain premium listing benefits.

The company focusing more on online signing up of suppliers and telephone based signing up.

No of paid subscribers grew 17% yoy in June 2019 quarter.

Average customer realization per customer improved 10% yoy.

Generally subscriber addition has grown at 15-20% and average customer realization per customer has grown 5-7%.

Last year the company had 723 million visits. Out of that 76% of traffic came from mobile app.

100% of traffic is organic that is the company does not spend any money for customer (buyer) acquisition.

The company's server is located in US, Singapore and India.

Last major brand advertising the company did was in 2016. Currently the company does not require to make any advertising expenses as buyers and sellers are growing handsomely and organically.

Only 36% of the buyers is from metro.

Focus will be on new customer acquisition for future growth.

It has 60mn+ listed products across 54 industries.

It has 72 branches in 37 cities across India.

The company generated consolidated cash flow from operations of Rs 54 crore leading to cash and investments of Rs 746 crore as on June 2019 as compared to Rs 448 crore on June 2018, up 67%.

The company is continuously investing in expanding network, enhancing technological capabilities and acquiring the best minds from the industry. The management is hopeful that these measures would hold it in good stead going forward as well.

The company has 60% in B2B classified segment and not in search segment. However there are other avenues for growth. 3 years ago Walmart had released a report which said B2B market place was a $ 700 billion opportunity. Also digital market is slated to become a Rs 25000 crore market by 2020.

The customer inquiries had peaked few quarters ago due to issues on the economic front however the same has grown impressively in the current quarter. It expects the economy to improve quickly.

The company is on track to add new customers in the current quarter as it has been adding in past few quarters.

The management expects strong revenue per customer (RPU) and realization per customer.

Historically, sales have been increasing by 25% and expenses by 17-18%. This trend will continue going forward. So margins are expected to steadily continue to improve. This is true for all quarters except Q4. In Q4 margins will dip and cash flow from operation will increase significantly. This is due to seasonality of business.