Info Edge’s recruitment segment had billings of Rs 210 crore during the June quarter (Q1FY19). This was an increase of 15.4% year-on-year (YoY) as compared to Rs 182 crore in the same quarter last year. However, the recruitment revenue was at Rs 184 crore, up 13.7% (YoY).

In its earnings call, Hitesh Oberoi, Managing Director & CEO said that there was some pick up in IT business hiring, especially in cities like Hyderabad, Bangalore and Chennai, which had a positive impact for Naukri. He said that non-IT sectors like auto, insurance, manufacturing, construction, banking, finance etc. also helped in pushing the company’s growth rate, as indicated by the Naukri job index. On the other hand, revenues from consultants, however, did not grow as expected, Oberoi added. He stated that the company’s traffic in the job portal space continues to be in the mid-70s (%) excluding indeed and around 60% including indeed.

Answering an analyst’s question, Oberoi said that the company works with over 70000 customers on Naukri alone and that 20-25% of all hiring happens through the firm’s job portal. When asked about the ‘potential opportunity, in terms of market size’, Oberoi, while admitting that he doesn’t have any solid data, guessed that the market for recruitment alone could be over $1 billion or more. To a different question, Oberoi said that ‘close to 27% of their revenue comes from the IT sector and another 25% recruitment firms, while the rest comes from 40-50 different industries.’

Naukri’s operational numbers

  • In Q1 Naukri added an average of 18,000 fresh CVs every day, the same as last year.
  • The Naukri database grew to around 59 million CVs, vs 53 million last year
  • The number of CV modifications stood at 350,000 per day vs 2,64,000 per day last year.

On 99acres

In 99acres, billing grew 37.2% Y-o-Y in Q1 FY19 to Rs 40.9 crore while revenue grew 34% Y-o-Y to Rs 41.9 crore. Oberoi said, “Our traffic share amongst the real estate portals remained at around 50% during the quarter based on time spend on the web.Last quarter the traffic share was about 51%. The company also continued to invest heavily in marketing during the quarter, resulting in a Q1 EBITDA level loss of about Rs 11.5 crore as compared to a loss of Rs 9.6 crore last year, he said. Oberoi added that Info Edge will focus on investing in the key areas of marketing, product and technology for 99acres as it is trying to consolidate its position in the real estate classified business, especially considering that the real estate sector is on a revival path. He said that the company experienced an increase in sales queries by builder partners across the country in the quarter ending June.

Answering an analyst’s question while Delhi and Mumbai are the two biggest markets for 99acres followed by Bangalore and Hyderabad. In this quarter, however, all cities that 99acres operates in performed well, he added. To another question, the company said that the growth seen in the last few quarters was coming on the back of a low-base, recorded in the past two-years due to the implementation of RERA, demonitisation etc. As such, it is hard to decode if the positive growth in the sector will sustain, the company said.

On Jeevansathi

In Jeevansathi business, billings grew 1%, YoY to Rs 18.2 crores in June, owing to oppressive pricing and activities by competition during the quarter, said Oberoi in the call. Revenue from the segment grew 4%, YoY to Rs 18.2 crore. He added that higher marketing costs yielded higher traction, as the number of paid transaction improved on year. As a result, Oberoi stated that the company will continue to spend in marketing on Jeevansathi going forward. Operating EBITDA losses in Jeevansathi increased to Rs 5.6 crore in Q1 FY19 from Rs 4.1 crore in Q1 FY ‘18. Oberoi said that more than 90% of the users accessed Jeevansathi from mobile.

On Shiksha

In the quarter ending June, billings grew 22% y-o-y to Rs 14 crore while revenue grew 11% y-o-y and reached Rs 15.3 crore. In this segment, Info Edge reported EBITDA profit of Rs 3.1 crore in Q1FY19 as compared to Rs 2.2 crore in the same quarter last year.

On Zomato

In the call, the company’s executives said that Zomato is “increasingly delivering more and more of  using its own delivery system, including runnr and less through third parties. Citing Zomato’s products like Gold and its most recent offering, Piggybank, the company said that the service has ‘apart from online ordering, it has a second, a third and a fourth leg.’ On competition with Swiggy, the company said that Zomato is expanding aggressively and that it not only expects the gap to narrow but also overtake it in the coming few months.

Investment focus

Oberoi said that the Policy Bazaar deal was announced during the quarter and will be completed
after the statutory approvals. While saying that the outlook on Policy Bazaar is positive, the company said they will evaluate their stake in the company quarter-by-quarter. In the earnings call, the company said that it roughly holds a 14% stake in Policy Bazaar. The company said that it will evaluate new investment opportunities from time to time.

Download: Earning Call Webcast