Info Edge dips 2% on disappointing March quarter results

Shares of Info Edge (India) were down 2 per cent at Rs 4,865 on the BSE in intra-day trade on Tuesday, in an otherwise strong market, after the company reported a 44.9 per cent year-on-year (YoY) decline in operating Ebitda (earnings before interest, taxes, depreciation, and amortisation) at Rs 53.2 crore during the March 2021 quarter (Q4FY21). Net sales were down 10.2 per cent YoY at Rs 290 crore.

However, the company has seen improving billing growth both YoY and quarter on quarter (QoQ). Billing increased 25.1 per cent YoY and 39.8 per cent QoQ to Rs 415.3 crore during Q4FY21, mainly led by a 26 per cent YoY growth in recruitment and 41.5 per cent YoY growth in 99 acres billing. As compared to Q4FY19 (a pre-pandemic quarter), the company’s overall billing was up 15.0 per cent.

ICICI Securities believes Info Edge will be a key beneficiary of a shift of advertising to the online medium. "In addition, digital onboarding of talent and strong traction in IT and ITeS segment bodes well for revenue growth. Further, the company is witnessing a healthy billing trend QoQ, YoY," the brokerage said, adding that it expects the company to witness improved traction post the second Covid wave. 

Prudent capital allocation, quasi-play on the Indian startup ecosystem (Zomato, PolicyBazaar, like Shoekonect, Ustra, Gramophone) and leadership in recruitment with an Ebitda margin of above 50 per cent, keeps us optimistic on the stock from a long term perspective, the brokerage said in a note.

Info Edge (India) is among the leading internet companies in India. It runs leading internet businesses - Naukri.com - India’s no. 1 job site, Jeevansathi.com – one of the leading matrimonial portals, 99acres.com - India’s No.1 real estate portal and Shiksha.com – India’s leading education portal. The company also owns Quadrangle – an offline executive search business, and Naukri Gulf (a leading job site in the Middle East market).