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InfoEdge Q4 FY11 Call: Vertical Specific Results; 99Acres Profit; Naukri UI; Shiksha

Info Edge closed the financial year 2010-2011 with healthy deferred sales revenues of Rs 89 crores at the end of the year, up from Rs. 53 crore at the end of the previous fiscal, mostly on account of increased demand for Naukri products. The company reported a Profit After Tax of Rs 27 crore during the quarter, and Operating PAT of Rs 16.7 crore up by 30.6%. The net sales of the company were Rs 81 crore for Q4 which is a 25% jump as compared to last quarter’s sales which were Rs 65 crore. Operating EBITDA rose by 32% at Rs 28 crore in the quarter. The operating EBITDA margin was 34.8% versus 33% in same quarter last year. During its conference call, Info Edge said that its ‘Other Income’ is expected to be higher next year on account of larger cash balance, and better interest rates. For the full year, its net sales were at Rs 294 crore which is an increase on 26% as compared to last year. Operating EBITDA was at Rs 97.7 crore for the full year, up 47% year-on-year.

Advertising and other Expenses: Advertisement expenses were flat, year on year, growing only 1.7%. The company said that advertising expenses for Shiksha might go up next year (rather current year) whereas it may invest more in Naukri and 99Acres on the advertising side. Employee cost grew at 29% for the year, and total expenditure grew by 18% for the year.

– MakeMyTrip share sale: Info Edge made Rs 3.74 crore “net of tax income” from sale of its shares in MakeMyTrip. Sanjeev Bikhchandani had the shares by virtue of being on the board of MakeMyTrip as ESOPs, “which he passed on to the company at cost and the company has liquidated those shareholdings
in this quarter and made a gain, the net gain after tax is about Rs 3.7 Crore so this is the exceptional item which you are referring to.”

Investments: InfoEdge made 2 more  investments in Q4 namely in Nogle Technologies and Mydala.com. Nogle Technologies, an  information sharing platform raised 1 crore from InfoEdge whereas mydala.com, a disocunt deals portal secured an investmemnt of 9 crores. (Ed: the company has also since invested $3.5 million in 99Labels.com)

On user interface improvements: Although, Oberoi admits that there is clutter on the Naukri.com homepage, but added that usability studies have shown that job seekers do not find it difficult to use the site. “Yes there is some clutter on the home page but that clutter also generates a lot of revenue and all our studies so far with job seekers have revealed that they do not find it very difficult to use the site, so I am not sure much is going to change there in a hurry, yes we continue to keep working on improving algorithms, on improving our matching, on improving our search, on improving performance in our site and that will continue and we believe this will make an bigger impact on usability than just a home page with fewer ads”

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Vertical Specific Results

Recruitment Solutions(Include Naukri.com, Naukri Gulf, Job Seeker Services, FirstNaukri, Quadrangle)

– Net Sales: Rs 67  crore for the quarter, up from Rs 62 crore for the same quarter last year.
– Naukri Topline grew by 30% for the quarter, year on year, while for the full year, it grew 29%
– Operating EBITDA: Rs 29.3 crore,down from 30.2 crore
– EBITDA Margins: EBITDA margins in recruitment were at 44% versus 43.45% in Q4 last year; Naukri.com’s
EBITDA margin was at 48% for Q4-FY11, up from 42% for Q4-FY10. For the full year Naukri.com EBITDA margins were 49%, up from 41% a year ago.
– Resumes: 25 million, up from 24 million last year
– Average Resumes added daily: 11,000, up from 10,000 last quarter
– Average  resumes modified daily: 73000, up from 70000 last quarter
– Number of unique paying customers: 22700, up from 21000 in Q3
– Share of Naukri.com revenues: 25% IT/ITES, 5% BFSI, 22% Infrastructure

– Info Edge has rechristened its Rs 15 lakh plus jobs site as NaukriPremium.Com, but the site just points to a section on Naukri. MediaNama’s take on this is that the senior level jobs positions require a different approach – a separate site, better usability (not the clutter-fest that is the Naukri.com homepage). In the senior level recruitment space, Naukri faces competition from HeadHonchos.com and LinkedIn.

Other verticals (Jeevansathi, 99Acres, AllcheckDeals
-Net Sale: 14.8 crores form 13.1 crores at last quarter
-Operating EBITDA loss, came down to  0.90 crore  from 2.7 crore in last quarter

– Net sales were 21% higher in Q4-FY11, compared with Q4-FY10. Full year net sales was Rs 21 crore, up 11%
– EBITDA loss of Rs 4 crore for the full year FY11, Rs 12 lakh loss for Q4-FY11
– Number of profiles ever loaded: 4.3 million, up from 4.1 million
– Average number of profiles acquired daily: 1980,up from 1750 last quarter
– Number of unique paid customers: 22738, up from 22495 last quarter
– Average amount realized in Rupees: Rs 2441, up from Rs 2375
– Jeevansathi business grew by about 21%, in terms of net sales as compared to 16% last quarter.
– Looking to reduce customer acquisition cost
– “Only when we are confident that we have got the model under control will we invest a lot of money on the brand building side. So, we do not expect to lose a lot of money in Jeevansathi next year, but we are not very sure whether we have cracked a model where we can grow the revenue by 30-40% every year as yet.”

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– Broke even for the full year, and made a small profit in Q4-FY11. EBITDA margin was around 20% for Q4. EBITDA profit was Rs 39 lakh, for the full year, compared to a loss of Rs 3.7 crore the previous fiscal.
– Topline grew 63% for Q4-FY11, compared with Q4-FY10. Full year topline was 72% higher than the previous fiscal.
– Number of listings (approx): 196,000 as compared to 177,000
– Number of Paid transactions:  6800 compared to 5900 last quarter
– Plans to expand sales operations of 99Acres, and invest in brand building
– The cost structures of 99Acres and Naukri are similar – there is a technology cost, product management people, branch offices, and a B2B sales force
– “On the dealer side, especially on the broker side, which is where we get most of our revenues from adoption is slow, because the broker community is not very net savvy and we have to do a very good job of educating them how to use the Internet to sort of get more customers and that is what is taking time. Having said that we have made certain progress, we have more than 5000 customers today, but the universe out there is huge.”
– C2C is not a big source of revenue for 99Acres, and the company does not see it as a big source of revenue in the next few years.
– “if 99acres grows at 70% next year as well, then it is unlikely that we will make a loss, however if growth in 99acres were to slow down, let us say it grows at 30-40%, and then it could go in to a loss once again next

– Number of profiles: 4 million as compared to 3.8 million in the previous quarter
-Number of profiles added daily:  came to down to 2448 from 2500 in last quarter

– Plans to increase advertising spend to build brand
– Lost Rs 1.6 Crores in Q4-FY11

PolicyBazaar: treated as a subsidiary for the fiscal, but following the investment from Intel Capital, it will not be treated as an investment in the coming year.

AllCheckDeals: has not made a loss this year, it is near breakeven, it actually made a small profit

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