Changes are being made in the top management at BSE listed classifieds company: from July 26, 2010, current Chief Operating Officer & Whole-time Director, Hitesh Oberoi has been promoted to Managing Director & Chief Executive Officer, replacing Sanjeev Bikhchandani, who has moved up to the role of Founder and Executive Vice Chairman. There doesn’t appear to be a significant change operationally, however: Bikhchandani will focus primarily on strategic matters, investments and acquisitions while Oberoi will oversee the current businesses of the company. Ambarish Raghuvanshi, the current Chief Financial Officer & Whole-time Director, will transition to the role of Group President Finance and Chief Financial Officer.
This could well be a move to cater to aspirational needs of senior executives within Info Edge, for retention within Info Edge – an appointment to the COO position has not yet been announced. Alternatively, room could have been created for a fresh approach.
Net Profit Up 30%
Revenues and net profit are sequentially up in June quarter for Info Edge (India), which owns and operates classifieds sites like Naukri.com, 99Acres.com, Shiksha.com and Jeevansathi.com. In the March quarter, the company saw a drop in profits, but net profits are now up 30% sequentially and year on year to Rs. 173 million as a result of a pick up in the hiring and real estate sectors.
“The lead indicators – business confidence, GDP, Naukri Job Speak Index are all up, which augurs well for our businesses,” said Ambarish Raghuvanshi, CFO and Director, Info Edge (India) Limited. Sales has hopped up 1% sequentially to Rs. 658.81 million, note that Q1 is usually a weak one for the company.
Ad Spend Reduces, Other Income Reduces YoY
Ad spend has reduced 21% sequentially and 14.8% year on year to Rs. 77.29 million this quarter. Employee costs have risen 30.8% compared to June 2009 quarter; staff expenses are a large part of the company’s total expenses which rose 12.2% year on year to Rs. 468 million. Info Edge employs over 1600 staff in 32 cities in India.
Other income recorded in the quarter has dropped 27.4% year on year to Rs. 65.55 million this quarter and operating EBITDA is at Rs. 204 million.
99 Acres Biz Grows 80%, Other Verticals
Income from recruitment solutions grew 24% while 99acres.com businesses grew 80% during the quarter, the company has informed. Verticals apart from Naukri.com (including 99acres.com and Jeevansathi.com) have further reduced their EBITDA losses to Rs 25 million from Rs. 44 million in the corresponding quarter last year.