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Charts: Info Edge Q3-FY15 results suggest that it’s still mostly a one trick pony


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Despite years of investments in other businesses, Info Edge India is still mostly a one tricky pony: a majority of its revenues still come from its recruitment solutions business:

info-edge-recruitment-q3-fy15

The other verticals are loss making, have been so, since Info Edge IPO’ed in 2007, and are perpetually in “investment mode”.

info-edge-other-verticals-q3-fy15

Info Edge’s dependency on IT Services / ITES is high. In Q3-FY08, IT/ITES accounted for 30% of Naukri.com revenues. 7 years later, it still accounts for 28%, and after a low of 25% in Q2-FY09, has been increasing. The last three years:

Info-Edge-naukri-revenue-split-Q3-FY13 Info-Edge-naukri-revenue-split-Q3-FY14Info-Edge-naukri-revenue-split-Q3-FY15

With layoffs taking place in the IT sector, Info Edge might be adversely impacted.

99Acres is the business the company is banking on, to bring the next level of growth, apart from its investment in Zomato. In FY09, Info Edge decided to push for monetization of 99Acres, and subsequently, a majority of listings on 99Acres are paid.

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Info-Edge-99Acres-Listings

The number of paid listings per transactions has remained stable, which indicates that brokers are buying more listings per transaction.

Info-Edge-99Acres-transactions

Jeevansathi is…still there, but barely. Info Edge might as well sell it off to Bharatmatrimony or Shaadi (whichever of them is number two in the market).

Info-Edge-jeevansathi-q3-fy15

Company financials

Info Edge Financials

 

Q3 is typically the weakest quarter of the year for the company, but it has consistently shown growth, year on year.Info Edge Q3 Trends

On the advertising front, Info Edge maintains advertising expenses at between 17-22% of expenditure each quarter. Advertising expenses peaked this quarter (Q3-FY15), at Rs 23.07 crore.

Info Edge Advertising Expenses Q3-FY15 Info Edge Advertising Pc Q3-FY15

Employee expenditure has remained consistently between 53-59% of total expenditure.

Info Edge Employee Cost pc Q3-FY15

Employee expenditure has been rising consistently each quarter.

Info Edge Employee Cost Q3-FY15

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  • Mikhil

    Nikhil – Is there any company in India in any of the sectors like housing , matrimony etc that is making money :P

  • At some level Nikhil, all companies, including Medianama are one trick ponies only. The big deal is that this pony earns 170 Cr a quarter ~ Respects on that front from my end :)

    • MediaNama’s not even in an inch of Info Edge. :/

      The Info Edge management deserves respect not just for the revenue and profitability, but also the transparency with which they operate: all these charts would have not been possible, if it wasn’t for their disclosures to the investors.

      Let me explain where I’m coming from: Info Edge is also a company that has been assuring investors about scaling their other businesses ever since its IPO: Shiksha and 99Acres have been in ‘investment mode’ for a while. I think I remember hearing them say that it takes 10 years to build a large business. Well, we’re nearing that 10 year mark (since the IPO). 99Acres is riding the momentum created by others in the market, namely housing and commonfloor. Not something that Info Edge could do by themselves, despite their cash. Zomato couldn’t have been built in the Info Edge structure, but it’s a great investment.

      A few quarters ago, I had even asked Sanjeev Bikhchandani on the call whether these businesses would have grown faster if they were independent organizations, with a separate CEO and management. I think they would have. Frankly, I think there’s a case for Info Edge to get out of the way, wrt to some of their other businesses.

  • Anjali Joshi

    Is there any company in India in any of the sectors like housing , matrimony etc that is making money. i don’t think so.. :P than what’s the result ?