Indiamart Intermesh Ltd Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Sachin Salgaonkar - BofA Securities India Limited - Analyst : Hi, good day. Can you guys hear me?

Question: Sachin Salgaonkar - BofA Securities India Limited - Analyst : Thank you for the opportunity. I have two questions. First question, this is regarding your net ads. Clearly, your net ads addition is close to around 2000 or lower for last, seven odd quarters. So I wanted to understand some of the steps taken by you guys to reduce churn. Any time frame we should have in mind where we could start seeing an improvement in, the overall net ads and hence, revenue for you guys? Okay. Second question, I just wanted to understand the mix for, platinum and gold users. What we are seeing for a few quarters is clearly a churn being high and as a result of it, collections growth slowing down, contribution from the not so, the smaller customers, getting down. So why is the mix of platinum and gold not increasing in the proportion of total revenues? Presume it's range bound in the range of 75% to 80% only. So I wanted to understand, should we see this proportion increasing because the revenue from other set of users is going down. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 29, 2025 / 11:00AM, INMR.NS - Q4 2025 Indiamart Intermesh Ltd Earnings Call

Question: Sachin Salgaonkar - BofA Securities India Limited - Analyst : Thanks, very clear. Just one quick follow-up out here. How should one think about your margins in the time frame your net ads remains at these levels? Because when I look at the margins for last seven quarters and I do get there is a quarterly seasonality, but they are anywhere between 29% all the way to 43%. So is there a sort of a range one needs to be aware about from a margin perspective?

Question: Sachin Salgaonkar - BofA Securities India Limited - Analyst : Great. Thanks a lot.

Question: Amit Chandra - HDFC Securities - Analyst : Oh Yes.

Question: Swapnil Potdukhe - JM Financial Ltd - Analyst : Hello. Can you hear me?

Question: Swapnil Potdukhe - JM Financial Ltd - Analyst : Hi. So, my first question is regarding your unique business inquiries delivered. Obviously, they are down 8% to 9%, and you mentioned that, you're, delivering the inquiries to less number of suppliers right now compared to what you were doing earlier, right, 6.5% coming down to 3.8%. But, my question is like, have you started getting any feedback from the suppliers as to, better convergence now compared to the previous, or is it, still we are yet to see any meaningful results on this side? I understand that as a platform, you may not have the complete data, but you certainly you will be discussing with your paying suppliers on this side.

Question: Swapnil Potdukhe - JM Financial Ltd - Analyst : Understood, but, my question, just to extend that. Will it be possible? I understand right now that may not be the focus, but going forward if there are better conversions for the suppliers, when you deliver less, when the competition is less for them, will you be able to, pass on significant, pricing to them? I mean, would you -- would it be possible for you to take significant pricing hikes, at least to those people? Who might be benefiting from this?

Question: Swapnil Potdukhe - JM Financial Ltd - Analyst : Okay. Yeah, but what about the gold, customers, I mean.

Question: Swapnil Potdukhe - JM Financial Ltd - Analyst : Okay, understood. The second question is, also on the traffic side. Now, if you see the total traffic that you share, right, that number, continues to remain weak. I mean, the, for the full year itself, growth was hardly 1% or 2%. Now, one is like, why that, the number of hits that you're getting on your website or your mobile app are significant, as lukewarm. Secondly, are there any plans to invest on the ANP side, to create more awareness about the platform, or some other measures, that would help you increase the, number of hits, on your platform?

Question: Swapnil Potdukhe - JM Financial Ltd - Analyst : Okay, but, these projects will not have a meaningful impact on your margins per se because you just now said like, your margins.

Question: Swapnil Potdukhe - JM Financial Ltd - Analyst : Understood. And for to check on the generates, like -- can you just give a breakup of how the generates have been across the different types of supplier categories, this quarter and, how, just to get a sense as to how they were moved, over the last three or four quarters.

Question: Swapnil Potdukhe - JM Financial Ltd - Analyst : Got it. And just something on the busy side, because, I see that the number of licenses sold seem to increase, this quarter by a decent number. Earlier we used to around 6,000 to 7,000 licenses per quarter. Now that number has increased to 8,000. Plus I think that there has been some increase in the religion, side also. So any special efforts, that, you would, have you taken on that side or like something which is worth. Working on the busy side. Would you like to call out something on. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 29, 2025 / 11:00AM, INMR.NS - Q4 2025 Indiamart Intermesh Ltd Earnings Call

Question: Swapnil Potdukhe - JM Financial Ltd - Analyst : Just to get a sense as to how we would our product will be priced comp compared to the competition, any sense on the busy side, like what tally or, mark or, so what will be the difference on that side and how much scope do you think, we can see on the relations?

Question: Swapnil Potdukhe - JM Financial Ltd - Analyst : So do you see any scope for improvement on the relations for on a consistent basis for your, some, a few more, period, or like, since you're especially on the renewal side if that is a since you're already on par.

Question: Swapnil Potdukhe - JM Financial Ltd - Analyst : Got it. Good. Thanks a lot for your, time and all the best.

Question: Nikhil Choudhary - Nuvama Group - Analyst : Yeah, thanks for the opportunity. First question on, supplier edition. The next one, we have again moved to, net subscriber being positive after the last time we have seen decline. Is it fair to say that Q3 was anomaly and The subscriber edition trend will again go back to INR1,000 to INR3,000, between those ranges, with the ARPU growth of, let's say high single digit. And do you maintain your guidance of collection growth, being less than 10% or more or less, mid single to high single digit?

Question: Nikhil Choudhary - Nuvama Group - Analyst : Got it, sir. Just to follow up on the point you mentioned that, we are now, thinking on the type of supplier, to acquire, right? Is the behavior of these suppliers is different from what we were acquiring earlier? Well, while I understand the churn, won't be visible now. But let's say in terms of behavior on the platform, how active they are, how responsive they are, or any other internal metrics you are, checking to differentiate between the newly acquired, customer compared to what you were doing, let's say two, three quarters back.

Question: Nikhil Choudhary - Nuvama Group - Analyst : Got it, sir. Second one, just want to understand basic math behind it and sustainability of, the top 10% [argo] growth. This top 10% ARPU growth had been, if I'm not wrong, more than, 15% for quite a time, with let's say unique business inquiry, on an average, being lower than, the overall ARPU growth. Do you think this, 15%, plus type of ARPU growth, at least for let's say gold and platinum is sustainable. Or you think, there will be a setting the way we have seen for let's say that category.

Question: Nikhil Choudhary - Nuvama Group - Analyst : Got it, sir. That's it from my side. Good luck for the coming period. Thank you.

Question: Amit Chandra - HDFC Securities - Analyst : Thank you. And thanks for the opportunity. So my first question is on the collections growth, I know that has slowed down. Obviously, we have done slightly better in this quarter, but I'm saying from an overall year perspective. The collections have slowed down. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 29, 2025 / 11:00AM, INMR.NS - Q4 2025 Indiamart Intermesh Ltd Earnings Call So maybe you know you mentioned that obviouslych is one of the reasons for the slow growth in collections. But is it also because of the, I know the platinum and, the platinum and the gold customers, are, opting for more single year renewals versus like multi-year earlier. And also if you can share what percentage of your top 1 and top 10 customers are going for, single year versus like multi-year in this year versus last year.

Question: Amit Chandra - HDFC Securities - Analyst : So saying that the number of customers who are opting for a three year and versus one year remains the same, there is no change in that, right? Yeah.

Question: Amit Chandra - HDFC Securities - Analyst : In terms of the, mismatch between the ARPU growth versus the collections growth, so obviously the ARPU growth is being fueled by the top, top 1 and top 10 customers. So if, there is value like being derived from the platform, then what's the reason that it's not, getting reflected in terms of the collections work? Obviously Churn is one reason, but, churn, now seems to be a permanent problem. So we have not seen any like progress on that front. So I know can we assume that this 8% to 10% growth is the new normal?

Question: Amit Chandra - HDFC Securities - Analyst : Okay, and another, in terms of the factors which are driving the ARPU growth, obviously, I know one of the factors is, providing more, premium services, pricing hikes, and obviously we have -- in we have also lowered the number of, like RFQs, like per supplier. Or we have increased the quality of RFQ. So how this change of strategy is actually being taken by the customers and, is it, that we are prioritizing more to our, higher paying, suppliers to a larger extent, which is, not, in line with the strategy of. Improving our John at the lower end. So how to maintain that balance, so that is the question. So obviously you answered that, but.

Question: Amit Chandra - HDFC Securities - Analyst : Okay, sir. Thank you. .