Info Edge gains 9% in three days on strong Q4 results; stock hits new high

Shares of Info Edge (India) hit a new high of Rs 2,107, up 3 per cent, in intra-day trade on Thursday, gaining 9 per cent in the past three trading days, after the company reported a good set of numbers for the quarter ended March 2019 (Q4FY19).

In the past week, the stock has outperformed the market by surging 11 per cent, as compared to a 2.4 per cent rise in the benchmark S&P BSE Sensex.

Info Edge (India), which owns online job portal Naukri, reported 53.8 per cent jump in the standalone operating earnings before interest tax depreciation and amortization (EBITDA) at Rs 91.3 crore for Q4FY19 over the corresponding previous quarter. Net sales grew 21.6 per cent at Rs 293 crore on year-on-year basis.

The company reported a net profit of Rs 66.31 crore, compared to a loss of Rs 13.75 crore in the year-ago quarter. Adjusted net profit grew 48 per cent on YoY basis.

The management said billings continued to grow in high teens for Q4 and for the full year of FY2018-19. The increase in operating profit provide for more room to accelerate investment in technology and brand, it said.

Info Edge (India) on Tuesday said it will acquire Highorbit Careers - that operates job portals iimjobs.com and hirist.com - for cash consideration of Rs 80.82 crore.

The combination of iimjobs' strong brand proposition and Info Edge's strong distribution network enables Info Edge to better serve its recruiter clients and jobseekers by tailoring its services to meet their requirements, the company said in a regulatory filing.

“The company maintains its leadership position and continues to invest aggressively across businesses for technology upgradation and enhanced brand visibility. Management anticipates its growth momentum to continue with further scope of margin expansion as real estate portal and other businesses move towards breakeven,” brokerage firm Sharekhan said in client note.