Info Edge, which runs multiple Internet companies such as Naukri, Jeevansathi, and 99Acres, has reported a net profit of Rs 78.55 crore for the quarter ended September 2017(Q2 FY18). Net profit was down 1.89% from Rs 80.07 crore in the same quarter last year. However, Info Edge said that net profit growth would have been 97.7% without considering the tax reversal during Q2FY17.
Total income for Info Edge was up to Rs 251.4 crore, up 18.67% year-on-year (YoY). Other income was at Rs 26.17 crores. Net sales (revenue) was up 7.2% year-on-year at Rs 225.2 crore. Billing for the company increased to Rs 202.5 crore, up 9% year-on-year.
Info Edge’s net profit was helped by controlling its operating expenses. CFO Chintan Thakkar said that operating expenses remained flat for the sixth quarter. Total expenses for the quarter stood at Rs 141.74 crore, a decrease of 3.39% from Rs 146.72 crore in the same quarter.
- Recruitment Solutions (including and mostly Naukri.com) reported Rs 164.777 crore, up 6% YoY from Rs 155.45 crore. On a sequential basis, it grew 3.13% from Rs 159.77 crore. The segment posted a profit before tax of Rs 95.32 crore, marginally higher than Rs 85.28 crore reported last quarter, and higher than Rs 84.856 crore reported for the same quarter last year
- Real estate portal (99acres) reported revenues of Rs 32.65 crores, up from Rs 31.71 crore reported last quarter, and Rs 30.81 crores reported last year. Loss for the segment for the period stood at Rs 99.7 lakh, lower than Rs 11.18 crore reported last quarter, and Rs 14.83 crores reported for the same period last year.
- Other segments, including Shiksha and Jeevansathi, reported Rs 27.78 crores in revenues, compared to Rs 31.23 crore last quarter. The segment posted a loss of Rs 3.74 crores, higher than Rs 2.95 crore last quarter.
Info Edge has used Rs 165.63 crore of its Rs 750 crore QIP proceeds as working capital for 99Acres. The company had raised Rs 750 crore in the Q2 FY16, by selling 10.13 million shares of face value Rs 10 each, for an issue price of Rs 740 per share.
– Costs related to employees continued to be the largest expenditure for Info Edge. It stood at Rs 93.8 crore compared to Rs 99.1 crore in the last quarter. Employee costs amounted to 66.17% of the total expenditure.
– Advertising and promotion costs stood at Rs 17.57 crores, lower than the Rs 25.42 crore reported last quarter. Ad expenses accounted for 12.39% of the total expenditure this quarter. For context, advertising expenditure used to be typically around 20% of total expenditure for the company, but has been lower for the last few quarters.