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Heavy ad spends continue at Info Edge; profit up 2% to Rs 33.91Cr in Q2FY16

Info Edge Ltd, the company which owns Naukri.com, Jeevansathi, 99Acres, Shiksha.com, among others has reported a net profit after tax (on a standalone basis) of Rs 33.91 crore for the quarter ended September 30th, 2015, registering a marginal increase of  2.07% from Rs 33.26 crore profit in the same quarter last year and up 18% from Rs 28.75 crore profit in the previous quarter. Total income, including other income, increased 22% y-o-y to Rs 193.6 crore for the quarter. The net sales for the company grew to Rs 174.1 crore for the quarter, up 18% from Rs 147.57 crore in the same quarter last year and a marginal 1.34% rise from Rs 171.8 crore in the previous quarter. Employee benefits expenses and advertising and promotion costs continued to be high. Employee costs increased 24.89% y-o-y to Rs 75.26 crore and decreased marginally 0.88% on a sequential basis from Rs 75.93 crore. Advertising and promotion costs increased 67.55% y-o-y to Rs 37.43 crore and decreased 18.82% q-o-q. Ad expenses accounted for 26% of the total expenditure this quarter. In the preceding quarter, ad related costs represented 30% of the total expenditure. For context, advertising expenditure has typically been around 20% of total expenditure for the company. Info Edge has used Rs 44.60 crore of its Rs 750 crore QIP proceeds as working capital for 99Acres.The company had raised Rs 750 crore in the previous quarter, by selling 10.13 million shares of face value Rs 10 each, for an issue price of Rs 740 per share. (Read: How 99Acres plans to use…

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