- 27 May 2023
- ICICI Securities
Info Edge Q4 Results 2023: Margin performance aided by narrowing losses in 99 acres, Jeevansathi
Info Edge (India) Ltd | CMP: 6747 | Market Cap: 87,290.21
Margin performance aided by narrowing losses in 99 acres and Jeevansathi; strong Naukri billing likely to help healthy growth ahead
InfoEdge’s Q4 numbers were ahead of our estimates on margins. Revenue increased by 1.6% QoQ (vs our expectations of 1.9% QoQ growth). Naukri business (78% of mix) reported 0.2% QoQ growth , lower than our estimates of 2% QoQ growth while 99 acres (13% mix) reported growth of 3.6% QoQ ( vs our expected 2% QoQ growth). Jeevansathi business reported 5% QoQ revenue growth ( vs our expectation of 1% QoQ decline). The company’s EBITDA margins came in at 39.1% vs our expectations of 36.5% due to lower than expected employee and marketing expenses. Businesswise EBITDA losses for 99 acres and Jeevansathi continue to see downward trend.
Q4FY23 Earnings Summary
View: The company’s margin performance was impressive specially on 99 acres and Jeevansathi businesses where losses are coming down. It also could mean that competitive intensity in 99 acres likely coming down and it may also help in further narrowing losses in this business. Narrowing losses for Jeevansathi is also a reflection of Matrimony’s commentary indicating tapering down marketing expenses and further rationalisation of the costs will likely aid Jeevansathi performance. Billing in recruitment business was strong in FY23, as it grew 29% in FY23 and historical book to bill suggests that high teen growth in the business should not be a challenge, which along with narrowing losses in the other businesses likely to have a positive impact on the profitability ahead.
Impact: Positive