Info Edge (India), which owns popular site like naukri.Com today said its net profit rose by 21.38 per cent to Rs 17.88 crore for the second quarter ended September 30, 2010, over the same period last year.
The company had a net profit of Rs 14.73 crore in the same July-September quarter last year, Info Edge (India) said in a statement.
Replying to a question, about the reason for posting a strong quarter results, Info Edge (India) Group President Finance and CFO Ambarish Raghuvanshi told PTI that "Improved business environment and price competitiveness during the quarter helped the company to post the good quarterly numbers."
Net sales rose to Rs 71.18 crore in the second quarter this fiscal, against Rs 55.18 crore in the same period last year.
Raghuvanshi also added that the company is planning to invest between Rs 20 and Rs 25 crore in over a period of three years in naukri.Com to upgrade their services and offerings by the site.
Asking about the 3G launch in India and its impact on the online businesses of the company, Raghuvanshi added that the company is optimistic about the launch, which will increase the mobile internet services over a period which in turn will be a positive sign for the company also.
"The Operating leverage in recruitment continues to play out due to market improvement and competitive position thereby expanding margins. Also losses in some of our investment stage businesses such as 99acres.Com continues to reduce. Losses in Jeevansathi have increased due to an advertising campaign and this is as per plan," Raghuvanshi added.
Income from recruitment solutions grew by 28 per cent while 99acres.Com business posted 74 per cent rise during the quarter over last year.
During the quarter, an initial investment of Rs 60 lacs has been made in DC Foodiebay Online Services.
Further, there has been a related party transaction whereby the company has purchased shares of MakeMyTrip Ltd, Mauritius, from a director (received by the director in lieu of sitting fees/commission from this company).