Info Edge reports Rs 205 Cr net profit for July-Sep quarter
The sharp growth in net profit for Info Edge largely came from certain exceptional gains while the revenues grew in the low single digits.
Info Edge, the consumer internet company, reported a net profit of Rs 205 crore for the second quarter of the current fiscal year—double what it had reported a year ago, boosted largely by a one-time gain of Rs 46 crore. In July-September 2022, its profit stood at Rs 103 crore.
However, the revenue growth on a consolidated basis for the second quarter came in at Rs 626 crore—a mere 4% growth when compared to a similar period a year ago. The muted revenue growth was largely due to slowness in its flagship recruitment business, Naukri.
The recruitment business, which is its largest revenue component, grew 8% on a year-on-year basis for the second quarter. If one compares this revenue with the first quarter of this fiscal, the growth rate remained flat.
Info Edge MD and CEO Hitesh Oberoi.
Hiring outlook for Indian IT industry weakens on global macro woes, slow discretionary spends
Real estate and matrimony services verticals boosted the revenue growth for Info Edge though on a smaller base. The real estate vertical of Info Edge, 99acres.com, registered a revenue growth of 25.2% for the second quarter.
Info Edge CEO Hitesh Oberoi said, “Good execution in 99acres and Jeevansathi business helped reduce burn in these verticals substantially during the quarter. The non-IT hiring market continued to be strong but a slowdown in IT hiring dragged down Naukri growth.”
The Indian IT industry has posted very muted financial performance for the second quarter of FY24. This has resulted in companies like Infosys, Wipro, HCL, and TCS witnessing a reduction in employee headcount inferring a slowdown in demand for people. These developments have a bearing on the recruitment business of Info Edge.
The company operates in four areas of business—recruitment, real estate, matrimony, and education.
Info Edge registered a growth of 26.8% in its operating profit for the second quarter and billings grew by 4.8%.
Edited by Kanishk Singh