(by Preethi J & Nikhil Pahwa)
Update: Added charts and table. Details from conference calls soon
In line with expectations of a poor quarter with ebbed down hiring hitting its flagship portal Naukri.com, Info Edge India has reported a Net Profit of Rs. 147.3 million for the quarter ended September 30th 2009 (Sep 09), down 5.97% from Rs. 156.7 million for Sep08, but up sequentially from Rs. 133.04 million last quarter.
At Rs. 551.8 million, the company reported a 15.64% year-on-year decline in net sales. On a brighter note, this is the first time in the last three quarters that the company has reported a sequential increase in profit (10.33%) and net sales (4.3%).
Last quarter, Info Edge CEO Sanjeev Bikhchandani had said that if hiring picks up, then revenue will follow in the following quarter (i.e. Dec09). However, keep in mind that the Diwali quarter tends to be a weak one for the company.
Details: Release | Financial Results | Financial Statements | Earnings Call
Commenting on the results, Info Edge CFO Ambarish Raghuvanshi said, “The hiring environment continues to improve, albeit gradually. The drop in topline revenues and operating income reflects the changed scenario from the last year and is in line with expectations. However, the improvement is reflected in growth based on sequential quarter.”
Employee costs showed a further decline to Rs. 200.45 million from Rs 208.58 million in Q1-10 while ad and promotion costs grew 8.5% to Rs. 98.44 million sequentially. At Rs. 98.45 million, for the second quarter running, Info Edge has also increased advertising and promotion spends, albeit still a far cry (28% lower) from the Rs. 136.75 million they had spent in the Sep08 quarter.
Info Edge also owns websites Jeevansathi, 99 acres, Shiksha, Brijj, AskNaukri, FirstNaukri and Allcheckdeals.
Other verticals, apart from Naukri.com and Quadrangle incurred a EBITDA loss of Rs. 33.21 million as compared to Rs. 86.29 million for the same quarter last year.
— Jeevansathi Reports EBITDA Gain: According to the company, its matrimonial business Jeevansathi.com has reported a small EBITDA gain during the quarter, and a 15.8% growth in Revenues, which is lower compared to the previous quarter’s growth of 26.8%.
— 99acres.com business reported a continued reduction in losses in the quarter ending September 2009, and the company says that it continues to be in investment mode.
Note: We’ll update this post with more inputs.
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