Info Edge Ltd*, that owns Naukri.com, Jeevansathi, 99Acres, Shiksha.com, among others has reported a net profit after tax (on a standalone basis) of Rs 33.2 crore for the quarter ended September 30, 2014 (Q2-FY15), nearly flat from Rs 33.2 crore profit in the same quarter last year (Q2-FY14). Interestingly, Naukri had posted a similar Rs 33.2 crore profit in Q2-FY13.
The net sales grew to Rs 147.6 crore for the quarter, up 19.5% from Rs 123.5 crore in the same quarter last year and up 1.86% from Rs 144.9 crore crore in the previous quarter.
Earnings per share for Info Edge however dipped to Rs 2.97, from Rs 3.05 in Q2-FY14, and from Rs 3.64 in Q1-FY15.
Info Edge QIP Issue: During the quarter, Info Edge raised Rs 750 crore through qualified institutional placement (QIP). The company sold (pdf) 10.13 million shares (10,135,135 shares) of face value Rs 10 each, for an issue price of Rs 740 per share through this issue, a 3.5% discount to floor price. Info Edge shares are trading at Rs 850 at the time of writing this article.
The company had stated plans of using this capital to invest in organic and inorganic growth opportunities in existing businesses, particularly its real estate business 99acres, besides general corporate purposes.
It’s worth noting that 99Acres has been reporting losses for quite sometime now. It had posted an EBITDA loss of Rs 4.8 crore in FY14, up from 0.8 crore loss in FY13. This was due to growing investment in advertising spends, sales and new offices. The competition is also heating up in the online property business with companies like Housing and CommonFloor coming in with better products and focusing on both audience and agent acquisition. (Read: How Competition Is Changing 99acres)
Info Edge also leads the online recruitment business, with Naukri.com accounting for a majority of its topline. Its matrimonial portal, Jeevansathi.com, however remains number three in the market, behind Consim Info’s Bharatmatrimony.com, and People Group’s Shaadi.com.
More to follow
*Disclosure: Info Edge is an advertiser with Medianama