The increase in revenue was primarily driven by 25% increase in number of paying subscription suppliers and addition of Rs 10.8 crore revenue from accounting software services. Consolidated deferred revenue increased by 30% YoY to Rs 984 crore as on 30 September 2022.

Total expenses rose by 77.6% to Rs 183.6 crore in Q2 FY23 from Rs 103.4 crore in Q2 FY22, primarily due to a sharp rise in employee expenses (up 66.7% YoY).

The company continued making growth investments in manpower, product and technology, sales and servicing resulting into growth in revenue and paying subscription suppliers. As a result, consolidated EBITDA was Rs 67 crore for Q2 FY23 representing EBITDA margin of 28%. The firm had recorded an EBITDA of Rs 83 crore and an EBITDA margin of 46% in the same period last year.

Profit before tax in Q2 FY23 stood at Rs 92.7 crore, down by 14.6% from Rs 108.6 crore in Q2 FY22.

Consolidated cash flow from operations for the quarter was at Rs 78 crore. Cash and investments balance stood at Rs 1,975 crore as on 30 September 2022.

IndiaMART registered traffic of 261 million and total business enquiries of 122 million during Q2 FY23. Supplier storefronts grew to 7.3 million, an increase of 10% YoY and paying subscription suppliers grew by 25% YoY to 188,092 with a net addition of 8,832 paying subscription suppliers during the quarter.

Dinesh Agarwal, chief executive officer, said: "We are pleased to report growth in revenue, customers and deferred revenue along with healthy margins and cash flows in a stable demand environment.”

IndiaMART is India's largest online B2B marketplace for business products and services.