Info Edge Ltd, which owns Naukri.com, 99Acres, Jeevansathi.com, Shiksha.com, among others, on a standalone basis, reported a Net Profit after tax of Rs 30.80 crore for the quarter ended December 31st 2012 (Q3-FY13), up 6.76% from Rs 28.58 crore reported for the corresponding quarter last year, and down 8.08% from Rs 33.32 crore reported last quarter. The net sales for the company stood at Rs 106.41 crore, up 15.67% from Rs 91.99 crore recorded during the same quarter last year (Q3-FY12), and flat as compared with Rs 106.45 crore recorded the previous quarter (Q2-FY13). Operating PAT was at Rs 22.2 crore down by 1.2% over the corresponding quarter in FY 2011-12.
During the quarter revenue from recruitment solutions grew at 10.1% while the real estate vertical grew by 54.6%.
Earnings Per Share for the Info Edge stood at Rs 2.82, up 6.82% from Rs 2.64 for Q3-FY12, and down 7.54% from Rs 3.05 in Q2-FY13.
Deceleration In Recruitment Business
Commenting on the results, Ambarish Raghuvanshi, CFO and Director, Info Edge (India) Limited said that the recruitment businesses is decelerating in line with weak economic indicators. In addition, “the company has continued to make discretionary investment in the businesses, including in recruitment, leading to erosion in margins.”
Info Edge leads the online recruitment business, and during the quarter, Consim Info, a competing classifieds business, sold a majority stake in recruitment site ClickJobs.com to a realtor based in Delhi. Others have struggled to compete as well: Web18 sold back 50% stake in JobStreet in 2010. Nevertheless, Info Edge remains largely a recruitment business, with Naukri.com accounting for a majority of its topline. Its matrimonial portal, Jeevansathi.com, remains number three in the market, behind Consim Info’s Bharatmatrimony.com, and People Group’s Shaadi.com.
During the quarter, Info Edge invested Rs 5 crore in retail venture Happily Unmarried, picking up around 25% stake in the company. It also acquired TooStep, a social networking based recruitment solutions business, for Rs 4.125 crore, the company has now disclosed.
In the previous quarter, it had made a Rs 12.86 crore investment in the online restaurant and events guide Zomato, through optionally convertible cumulative redeemable preference shares, a Rs 5 crore investment in the online boutique shopping site 99labels through fully convertible cumulative redeemable unsecured debentures, and Rs 35 crore investment in the online photography service Canvera.
Download – Financials
Corrigendum: The headline of this post had incorrectly mentioned Info Edge’s profit as 28.85 crore. It has now been corrected. The error is regretted. Our apologies.
Updates: Error in headline has been corrected. Table and percentage values have been added. Added information from the press release.