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- 16 Aug 2022
- ICICIdirect Research
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INFO EDGE REPORTS STRONG Q1FY23 NUMBERS
NAUKRI - 8668 Change: -5.55 (-0.06 %)News: Info Edge reported strong numbers for Q1 on revenues as well as on margins. The company reported revenue growth of 11.4% QoQ/ 58.8% YoY to Rs507.7 crore driven by recruitment business (76% of revenue mix) which was up 12.4% QoQ/73.9% YoY to Rs387.1 crore while 99 acres reported revenue growth of 8.3% QoQ/34.9% YoY. Shiksha business reported revenue growth of 28.3% QoQ/37.3% YoY while Jeevasathi reported revenue decline of 9.8% QoQ/9.1% YoY due to change in business strategy. EBITDA margins at company level improved by 400 bps QoQ to 32.1% while EBITDA increased by 27.4% QoQ to Rs163.1 crore. The company’s billings increased by 66.8% YoY to Rs524.1 crore while that of Naukri reported growth of 64.6% on YoY basis.
View: Info Edge numbers were above expectations on growth and margins . In Naukri business, the growth was driven by both IT ( on continued high attrition, healthy deal pipeline across companies) and non-IT sectors such as BFSI, Insurance, education, health, retail , travel & tourism etc. Growth in 99 acres has been strong both in own/rental space due to pent up demand and it is expected to be strong going forward despite rising home loan interest rates. Jeevansaathi reported revenue dip which was on the expected line with the change in strategy wherein company is providing some of its services free and it will continue with this strategy until certain milestones are reached in terms of market share, after that it will find ways for monetization, which may include advertising. The EBITDA margins also improved due to 9.5% QoQ decline in promotion expenses ( large part of it pertains to Jeevansathi business strategy change ). The company says that naukri business margins are likely to sustain at these levels. Despite lock in period expiry, the company is looking to stay invested in Zomato and Policybazaar and in no hurry to divest.
Impact: Positive.