On the company’s conference call, Info Edge CEO Hitesh Oberoi informed that the company’s stand alone net sales in FY12 were at Rs 375.6 crore versus Rs 293.6 crore, an increase of about 28% compared to last year. The total income grew to Rs 416.5 crore for the full year, from Rs 321.8 crore, an increase of about 29.4% from last year. For FY12, operating EBITDA was at Rs 142 crore up 45% YoY, operating EBITDA margin was at 39% Vs 33% last year, operating PAT was at Rs 90 crore up 51% YoY, and operating PAT margin was at 24% Vs 20% last year.
On a stand alone basis, net sales for the quarter ended 31st March 2012 were at Rs 106 crore Vs Rs 81 crore in the same quarter last year, an increase of about 30%. Sequentially there was a 15% growth in net sales. For Q4, operating EBITDA was at Rs 43 crore up 48% YoY, and 22% QoQ, operating EBITDA margin was at 40% vs 35% in Q4FY11, operating PAT was Rs 27 crore up 59% YoY, and operating PAT margin in Q4 was at 26%. Deferred sales revenue increased to Rs 119 crore as on March 31st 2012, from Rs 92 crore as on Dec 31st 2011.
On Naukri: The company said that margins in Naukri improved compared to last year, however given that it intends to push hard on investments in all verticals next year, it warned that margins could get impacted if topline growth comes below 25%. “Hiring environment was not as buoyant as it used to be, and collection growth and advanced indicators of sales have slowed down in the last two quarters and business growth may continue to be subdued in the next 2-3 quarters,” said Oberoi. He added that the company executed well in the last 6 months (in Naukri) and was getting share from the competition, which was helping. Naukri wants to gain more share from other job boards and wants to build Naukri premium. The company plans to invest in product development and has upped the size of the product and technology team. It also plans to invest in analytics and customer service in the coming year. The company wants to bring Brij to Facebook.
– Inspite of Rs 119 crore in deferred sales revenue, collection growth in Naukri was low: Compared to Naukri’s internal targets, the collection growth was low. In FY10-11 collection growth was in the 45% range and this year, it’s in early 20s, marking deceleration.
– On realisation: Oberoi clarified that if the hiring market is bouyant Naukri ends up reducing discounts so the realisation improves. On the other hand if market becomes slow it has to give extra discounts. “Don’t expect huge pressure on realisation going forward unless the market situation changes.”
On 99acres: Info Edge upped investment and headcount, and claims to have gained share. Although the business broke even with meager profit, Info Edge wants to focus on topline growth and on increasing market share. It’s now present in 10 cities but the metros remain a major source of monetization. As per comScore, the market share of 99acres was in mid 30s (percentage) and the company wants to take it up to 50%. 99acres doesn’t monetize individual owners and the main source of revenue was from builders and brokers. Witnessed decrease in realisation as new customers were added who try packages for short periods, and because of the absence of new launches. The company would continue to invest in the business.
On JeevanSaathi: Still burning cash and will continue to do so for the next 2-3 years, according to the company, but witnessing growth in North India, where the site is now on the no.2 position, in terms of traffic. The company wants to continue to focus on North, targeting the numero uno position. It has 18%-19% market share as per comScore figures, in traffic. Will continue to invest in the business.
On Shiksha: The company claims to receive 50,000 visits in a day, but is still at an early stage. The company’s generating revenue through 2-3 different sources, and saw an 87% increase in net sales. It’s not losing a lot of money, while most competitors seem to be doing badly, according to Info edge.
On PolicyBazaar– On challenges due to regulatory guidelines from IRDA, the company responded that it hasn’t got the investment diluted and is focusing on helping the team in operations. On Price sealing on leads: “if cost of generating a lead is more than price of selling it, you shouldn’t be selling leads, so we have to evolve business to selling other stuff and not leads including distance marketing and ad services, said the company exec. According to him, the challenge was to build dependence on insurance companies. PolicyBazaar was still burning cash and a path to profitability is being sorted out.
On Investee companies: Info Edge made a cumulative investment in all investee companies excluding ACD which is a 100% subsidiary, of Rs 132 crore in the last fiscal. It has taken 100% losses on ACD and MeritNation, and attributed losses for other investee companies. Its share of losses from them decreased to Rs 17.5 crore from Rs 20 crore, that was reported, last year. The cmpany was satisfied with all its investment but seemed concerned about the path to monetization in companies like MeritNation and Zomato. Info Edge invested Rs 5 crore in 99labels and Rs 1 crore in Nogle Technologies in Q4 FY12.
The company has invested Rs 2 crore in Nogle’s Blinkk.me which has been rebranded as Floost, but is not looking to monetize in the short term, and wants to gain user traction.
Net cash in balance sheet: The company has net cash in the range of Rs 481 crore.
Headcount: During last year, Info edge’s headcount went up by 20% in all businesses, and is now at 2150 people from 1550 people at the begining of last year.
Vertical Specific Results:
Recruitment Solutions(Include Naukri.com, Naukri Gulf, Job Seeker Services, FirstNaukri, Quadrangle) :
– Net Sales Up 27% to Rs 85 crores
– Naukri corporate sales grew by about 28%
– Quadrangle sales declined by 15%
– EBITDA margins in recruitment were at 55% versus 44% in Q4FY11.
– Naukri EBITDA margin was at 60% up from 48% YoY
– Naukri added 11,000 fresh CVs every day, total database at 29 million.
– Naukri CV modifications were average 100,000 per day
– During this year the company has served 46,000 unique clients, compared to 42,000, last year.
– Job Speak Index closed at 1170 in March
Other Verticals ( Jeevansathi, 99Acres, AllcheckDeals) :
– Net sales grew 14% YoY
– The company is the number 3 player and pricing is 20-30% lower than competition.
– top-line was up 63% YoY and the business broke-even
– Mixed signs in the real estate sector but activity is good in pockets
– The company plans to keep investing in this business.
– did not make substantial profits.
– Net sales grew by about 87%.
– 525 transactions in Q4 versus 492 in Q3
– 1900 sales transactions in FY12
– Operating environment was difficult, change in management and problems in Noida.
– The company made Rs 11 crore in top-line and registered losses at EBITDA level of Rs 3.6 crore
– All 6 investee companies excluding ACD put together have in the last 12 months done a topline of Rs 46 crore and incurred losses at the EBITDA level of Rs 50 crore.
– Applect is now a subsidiary, while Etech Aces is no longer a subsidiary
– Info Edge invested Rs 5 crore in 99labels and Rs 1 crore in Nogle Technologies in Q4 FY12.