Info Edge’s recruitment business revenues went up 10.8% year on year to Rs 91 crores for the quarter ended 31st December 2013, around 73% of it’s overall topline of around Rs 123.3 crore. EBITDA margins increased to 49.3% from 47%, while for its flagship business Naukri.com, EBIDTA margin increased to 53.6% from 52.1%. The company added an average of 10,400 CV’s every day and has a total of 36 million CV’s, with 121,000 CV’s being modified every day. The company served 27,000 unique customers during the quarter.
What’s particularly interesting about this last quarter at Naukri is the incorporation of products from two companies that it had acquired last year: using technology from Makesense Technologies, it has enhanced its job search capabilities by added semantic search. “It’s not a very visible change, but what it means is that the search algorithm has become a lot better than earlier. We are throwing more relevant responses to people who search on the site,” Info Edge CEO Hitesh Oberoi said, during the company’s conference call, adding that the company plans to expand semantic search to the resume database as well. Info Edge had acquired Makesense in March last year for Rs 8 crore.
The other interesting introduction is from TooStep, another company that Info Edge acquired last year: It has introduced the Naukri Career Site Manager, taking a software-as-a-service approach, and powering corporate career sites for clients. Naukri is pricing this at Rs 30,000 per month, for which “We’ll do the front end for you, and develop the back end for responses. We’ve rolled out a basic version, and the idea is to power every corporate site in the country. ” Revenue is just one part of the story, Oberoi said, adding that the Career Site Manager “will strengthen the overall brand, and help us get a higher share of wallet.” Info Edge had acquired Toostep in October 2012.
Info Edge has also launched a product called “Recruiter Connect” a couple of days ago, which is also a paid product. During the quarter, they rolled out a new version of their Naukri Android App, that is getting around 5000 downloads per day.
We also asked Oberoi about the status of three other initiatives from the company, largely centred around the recruitment space:
First Naukri: “We’re helping companies do the recruitment drives on campuses. We’ve got a software that helps them manage their responses, and we have a portal that helps end-to-end hiring. It’s a model which we’ve discovered with time, and only time will tell how it works, Oberoi said, adding that there are component of this model that they get paid for.
Brijj: “hasn’t really worked out like we expected, so we’ve stopped investing in it. The site still exists and there is stuff happening out there, but we’re not putting much resources in it.”
Naukri Premium: “We are hoping to a lot more in this area, and have to make a lot of product changes to make it work. We will be investing in it going forward.”
It wasn’t a very easy quarter for Naukri: Oberoi said that the “job market continues to be tight, and this will continue to be the case until growth picks up. Growth is largely due to IT being stable and gaining market from competitors.” Info Edge claimed a traffic share over 65% in the sector during the last quarter, citing Comscore. The company recently took a price increase, and according to Oberoi, discounts have fallen: “The IT market is stabilizing, but we’d like to wait till we take a price increase. We’ve just taken a price increase. As soon as the market recovers, discounts start falling and we can negotiate harder with customers.”