Matrimony.com Limited (“Matrimony” or the “Company”) provides both matchmaking and marriage related services through websites, mobile sites and mobile apps and is also complemented by 145+ company-owned retail outlets.
Its flagship matchmaking services are BharatMatrimony, EliteMatrimony and CommunityMatrimony.
Matrimony.com is the market leader in the Indian online matchmaking space boasting a total registration base of 39.82 Mn profiles – since 2006 and an active profile base of 5 Mn as on 31st March 2021.
In 2016, the Company launched marriage services to become a one stop shop for its customers in an asset light vendor platform for venue bookings, photography, catering, decorations, etc – Brands include – MatrimonyBazaar and Mandap.com.
Matrimony.com is the market leader in the Indian online matchmaking space with over 100,000 successful matches in FY21.The Company also offers offline matchmaking services with presence at more than 130 locations across several cities in the country.
Financial Performance
| Particulars | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 |
| Revenue (In Rs. Cr.) | 254.82 | 292.82 | 335.44 | 348.43 | 371.84 | 377.88 |
| Growth | – | 14.91% | 14.56% | 3.87% | 6.72% | 1.62% |
| EBITDA (In Rs. Cr.) | 6.62 | 58.84 | 77.59 | 55.07 | 54.49 | 67.54 |
| EBITDA Margin | 2.60% | 20.09% | 23.13% | 15.81% | 14.65% | 17.87% |
| EBIT (In Rs. Cr.) | -3.13 | 48.46 | 68.02 | 43.99 | 26.53 | 41.61 |
| EBIT Margin | -1.23% | 16.55% | 20.28% | 12.63% | 7.13% | 11.01% |
| PBT (In Rs. Cr.) | -1.29 | 47.35 | 72.93 | 59.48 | 39.14 | 54.23 |
| PAT (In Rs. Cr.) | -75.07 | 42.96 | 73.86 | 43.12 | 29.53 | 40.77 |
| PAT Margin | -29.46% | 14.67% | 22.02% | 12.38% | 7.94% | 10.79% |
| EPS (In Rs.) | -32.97 | 18.87 | 32.44 | 18.94 | 12.97 | 17.82 |
| EPS Growth Rate | – | – | 72% | -42% | -32% | 37% |
| Historic P/E (Closing Price of 31st March) | – | – | 23.20 | 35.05 | 21.39 | 51.66 |
| CURRENT P/E | 53.89 | |||||
| CURRENT PE/ROE | 2.62 | |||||
| EV/Sales | – | – | 3.49 | 3.27 | 3.09 | 5.92 |
| PE/ROE | – | – | 0.53 | 1.22 | 1.25 | 2.51 |
| D/E | -0.64 | -1.50 | 0.04 | 0.00 | 0.00 | 0.00 |
| Interest Coverage | NA | |||||
| ROCE | 11.39% | 326.11% | 39.08% | 21.26% | 11.62% | 15.80% |
| ROE | 1.70% | -160.40% | 43.50% | 28.75% | 17.15% | 20.60% |
Quarterly Performance
| Q1 FY 2021 | Q2 FY 2021 | Q3 FY 2021 | Q4 FY 2021 | Q1 FY 2022 | TTM | Q-o-Q % | Y-o-Y % | |
| Revenue | 86.80 | 93.27 | 96.69 | 101.12 | 105.45 | 396.53 | 4.28% | 21.49% |
| EBITDA | 15.44 | 16.50 | 18.29 | 17.31 | 22.26 | 74.36 | 28.60% | 44.17% |
| EBITDA Margin | 17.79% | 17.69% | 18.92% | 17.12% | 21.11% | 18.75% | ||
| PAT | 9.37 | 10.53 | 11.11 | 10.12 | 14.09 | 45.85 | 39.23% | 50.37% |
| PAT Margin | 10.79% | 11.29% | 11.49% | 10.01% | 13.36% | 11.56% | ||
| EPS | 4.10 | 4.49 | 4.82 | 4.43 | 6.03 | 19.77 | 36.12% | 47.07% |
Q1 FY 2022 Result Highlights
- The Company delivered another good quarter with strong y/y billing, revenue and profitability growth
- Billing at Rs 105.2 Cr. (decline of 1.4% q/q and growth of 29% y/y)
- The Company witnessed a decline in billing due to Covid related challenges. The billing trajectory improved in June after witnessing challenges in April and May. The Company has higher percentage of three-month billing
- In the matchmaking business, the Company had 0.22 million paid subscriptions during the quarter.
- Average transaction value for the matchmaking business stood at Rs. 4,742 as compared to Rs. 4,837 in June 2020.
INVESTMENT RATIONALE
Pure Internet Player
Over the two decades the Company has evolved as a strong consumer internet company, backed by robust technology. From Mobile apps to modernizing the data centre to automation powered by Artificial Intelligence (AI) and Machine Learning (ML), deployment of Big Data Platform and Analytics database, the Company has made big strides in technology. BharatMatrimony, the flagship brand of Matrimony.com, tied up with rating agency Crisil for wedding services platform WeddingBazaar.
Leadership Position
Matrimony.com continues to hold two decades of market leadership in Matchmaking services. As of 31 March 2021, the paid profiles were 0.84 million, which was higher by 18.86% from the last year, mainly due to an increase in the number of free profiles and improved operational efficiencies. The company has around 60% Market share in the online match-making space in India.
Debt Free Status
Increased Digital Adoption
Covid-19 has increased digital adoption in India. Expect momentum in the number of members to continue on matchmaking side. Initially, people had postponed weddings but people now realize that covid-19 may continue for some time, hence people are continuing with weddings although at a limited scale. The management expects EBITDA and profits to move up as billing improves to double-digit growth. Revenue will still be impacted during second quarter but billings will improve to double-digit. Impact of increase in billing will translate into revenue growth from Q3 onwards and profits will improve.
Focus on Acquisition
In the current quarter, Matrimony.com acquired 100% stake in Boatman Tech Pvt Ltd, which does business under the brand ShaadiSaga. ShaadiSaga is a wedding services company providing a one-stop platform for customers in India to discover and decide on vendors in the context of organising their weddings. Revenue was at Rs. 2.11 Cr. in FY21.
INVESTMENT CONCERN
Loss making Marriage Services
Marriage services revenue declined by 16.8% on YoY basis to Rs 6 million on the back of marriage events coming to pause. However, operating loss was at Rs 21 million similar to Q4 levels
Competition from Jeevansathi.com, Shadhi.com and other unorganized matchmaking companies.
The Company continues to be the market leader for Matchmaking Services over two decades. The Company differentiates itself by following a micro-market strategy whereby it offers a range of targeted and customized products and services that are tailored to meet the requirements of customers. The Company has continued focus on multiple initiatives across products, campaigns and customer experience to enhance market positioning and growth momentum.
With the hyper growth witnessed in the digital penetration in India and with only around 10- 12% penetration in online matchmaking services there is a huge opportunity to cater to in the coming years. The Company is well placed to address this potential by strengthening its position in all markets with further impetus to Tier 2 and Tier 3 cities which are fast growing, increase traction with NRI markets by having country specific profile targets and marketing initiatives.
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