Mumbai: The financial landscape for Media Matrix Worldwide Limited (MMWL) in Q2 FY25 paints a nuanced picture, juxtaposing robust revenue growth with strained profitability. With consolidated revenue from operations skyrocketing by 44.5 per cent YoY to Rs 1,35,688.52 lakh, the company has demonstrated remarkable top-line momentum. However, mounting expenses and shifts in inventory dynamics tempered the gains, reflecting the challenges of navigating an evolving business ecosystem.
Media Matrix's consolidated revenue from operations surged, bolstered by a significant increase in the trading of electronic items. Compared to Rs 93,756.58 lakh in the corresponding quarter of FY24, the latest figures underscore a well-executed growth strategy. The sale of services, though contributing a modest Rs 304.15 lakh, remained stable, affirming the firm's diversified revenue streams.
Despite the impressive revenue trajectory, the company’s net profit declined to Rs 205.54 lakh, down from Rs 307.14 lakh a year ago. The dip largely stems from a substantial increase in finance costs, up 54.3 per cent to Rs 657.25 lakh, reflecting higher borrowings during the period. Other factors, including a rise in employee benefit expenses by 14 per cent, added further pressure to the bottom line.
Operational Highlights
- Inventory Adjustments: Changes in inventory of stock-in-trade significantly reduced expenses by Rs 2,240.92 lakh, indicating efficient stock management.
- Employee Costs: Employee benefit expenses rose to Rs 249.66 lakh, up from Rs 218.95 lakh YoY, showcasing investments in human capital.
- Depreciation: Marginally increased to Rs 39.81 lakh, signifying sustained investment in operational infrastructure.
Notably, the quarter’s other comprehensive income recorded a dramatic turnaround, moving from a gain of Rs 3,280.91 lakh last year to a loss of Rs 2,089.96 lakh. This shift is attributed to fair value changes in investments held by subsidiaries, reflecting broader market volatility.
Cash flows from operations reflected a net outflow of Rs 4,390.10 lakh, contrasting starkly with the inflow of Rs 3,057.53 lakh reported for FY24. However, the company's liquidity position strengthened, with cash and cash equivalents rising sharply to Rs 470.93 lakh from Rs 89.40 lakh, thanks to effective management of short-term borrowings.
Media Matrix Worldwide continues to capitalise on its expertise in digital media and electronics trading. However, the dual challenges of rising finance costs and a volatile investment climate demand strategic recalibration. While the revenue trajectory inspires confidence, sustaining profitability in the face of external headwinds will be key to maintaining investor trust.
