Why Did Matrimony.com Experience a 30% Drop in Q4 Net Profit?
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Synopsis
Matrimony.com reveals a troubling 30% drop in Q4 net profit and a decline in revenue. This downturn raises questions about the company's business strategy and market position. What factors contributed to these disappointing results?
Key Takeaways
- Matrimony.com reported a 30.26% drop in net profit.
- Revenue from operations declined by 9.15% YoY.
- Paid subscriptions decreased by 9% compared to the previous fiscal year.
- EBITDA margin narrowed to 10.8%.
- Final dividend of Rs 5 recommended, pending approval.
Mumbai, May 16 (NationPress) The online matrimonial service provider Matrimony.com revealed a significant decline in its profit after tax (PAT) and revenue for the fourth quarter (Q4) of FY25 on Friday. The company reported that its consolidated net profit fell by 30.26% to Rs 8.18 crore for the quarter ending March 31, contrasting with Rs 11.73 crore during the same period last fiscal year (Q4 FY24), as detailed in its stock exchange filing.
Revenue from operations also took a hit, dropping by 9.15% year-on-year (YoY), amounting to Rs 108.32 crore.
The billing revenue for the company was Rs 114.8 crore, reflecting a 5.3% decline from the corresponding quarter in FY24.
Profit before tax (PBT) for the quarter registered at Rs 10.19 crore, a reduction of 33.61% compared to Rs 15.35 crore reported during the same quarter last year.
Moreover, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) decreased by 27.64% to Rs 12.3 crore, down from Rs 17 crore in Q4 FY24.
The EBITDA margin also shrank to 10.8%, down from 14.2% in the previous financial year.
On a segment-wise breakdown, revenue from the matchmaking business, the company’s primary service, saw a 9.10% drop to Rs 106.99 crore, while revenue from marriage services and others declined by 12.49% to Rs 1.33 crore during the quarter.
In the matchmaking segment, billing income was Rs 113.5 crore, reflecting a 4.8% YoY decline.
The company reported 2.5 lakh paid subscriptions during the quarter, a 9% decrease compared to the same period last fiscal.
Nonetheless, the board has proposed a final dividend of Rs 5 per equity share, pending shareholder approval.
On Friday, Matrimony.com shares traded at Rs 511.85, up by Rs 4.65 or 0.92% on the National Stock Exchange (NSE).
Matrimony.com operates well-known platforms such as BharatMatrimony, CommunityMatrimony, and EliteMatrimony.
Point of View
It’s crucial to highlight the implications of Matrimony.com’s financial struggles amidst a competitive market. While the decline in revenue and profit is concerning, it also presents an opportunity for the company to reassess its strategies and innovate to better serve its clientele. Our commitment is to provide unbiased coverage while supporting national interests.
NationPress
17/06/2025
Frequently Asked Questions
What caused the drop in Matrimony.com's profit?
The decline in profit is attributed to a decrease in revenue from operations and a reduction in paid subscriptions, alongside broader market challenges.
How has Matrimony.com responded to the financial downturn?
The board has recommended a final dividend, indicating confidence in the company's long-term prospects despite the recent financial challenges.
What are the key revenue sources for Matrimony.com?
The main revenue sources include matchmaking services and additional marriage-related services, both of which experienced declines this quarter.
What is the future outlook for Matrimony.com?
The company's future will depend on its ability to innovate, attract new subscribers, and adapt to changing market conditions.
How did the share price of Matrimony.com react to the news?
Following the financial report, Matrimony.com shares traded positively, reflecting investor confidence despite the downturn.
