Earnings Review
Info Edge net profit dn 63% QoQ, misses view by wide range
This story was originally published at 17:24 IST on 8 November 2024
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--Info Edge Jul-Sept net profit INR 858.76 mln
--Info Edge Jul-Sept revenue INR 6.56 bln vs INR 6.39 bln qtr ago
--Info Edge Jul-Sept net profit INR 858.76 mln vs INR 2.32 bln qtr ago
--Analysts saw Info Edge Jul-Sept net profit INR 2.43 bln
--Info Edge deferred tax outgo 2.60 bln in Jul-Sept on change in LTCG tax
--Info Edge Jul-Sept recruitment ops sales INR 4.95 bln vs INR 4.72 bln QoQ
--Info Edge Jul-Sept operating profit margin at 38.3%
--Info Edge Jul-Sept operating profit INR 2.51 bln vs INR 2.19 bln year ago
--Info Edge Apr-Sept revenue INR 12.95 bln vs INR 11.77 bln year ago
--Info Edge Apr-Sept net profit INR 3.18 bln vs INR 4.09 bln year ago
--Info Edge to pay INR 12 per share interim dividend; record date Nov 20
By Narayana Krishna
HYDERABAD – Info Edge India Ltd. Friday reported a net profit of INR 858.76 million for the September quarter, down 63.03% quarter-on-quarter due to significant tax outgo. The figure missed the Street's estimate by a wide margin. Analysts had estimated the online classified services company's net profit at INR 2.43 billion.
The company reported INR 2.60 billion of deferred tax outgo for the quarter due to recent changes in long-term capital gain tax norms, according to the company's profit and loss statement. The company also reported a one-time income of INR 1.08 billion, with most of it coming from the declassification of investment in joint venture to investment in financial instruments upon loss of control.
Info Edge's revenue for the quarter was up 2.69% sequentially at INR 6.56 billion, in line with theanalysts' expectations. The company had last reported double-digit growth in revenue in the June quarter of 2022. The operating profit margin for Jul-Sept was 38.3%, the company said.
The company’s recruitment services business witnessed 5% sequential growth to INR 4.95 billion.
On a year-on-year basis, the company's net profit fell 58.85% while revenue was up 10.64%.
The recruitment solutions business is the largest revenue-generating segment for the company. As expected by analysts, the non-recruitment segment business saw double-digit growth during the quarter. The company has non-IT segments such as 99acres for real estate, which saw 16.9% on-year growth in revenue, while Jeevansathi for the matrimonial business posted 33.4% on-year revenue growth and Shiksha for education witnessed 9.7% on-year growth, the company said.
After several quarters of weakness, the recruitment business billing saw double-digit growth for the quarter, the company said. In its quarterly updates submitted to stock exchanges, Info Edge reported 14.3% year-on-year growth in its Jul-Sept billing at INR 6.5 billion.
The company said the operating margins in the recruitment business improved in Jul-Sept and the cash balance reached INR 42.68 billion as of Sept. 30. The company's total expenses for the quarter fell 1.61% quarter-on-quarter to INR 4.05 billion, while other expenses fell 5.6% to INR 311 million. The spending on advertisements and promotions declined 11.73% sequentially to INR 755.5 million. The company reported other income of INR 803 million, up 4.4% on quarter. Info Edge reported its employee benefit expense for Jul-Sept at INR 2.62 billion.
For the six months ended September, the company's net profit fell 22.14% on year to INR 3.18 billion, while revenue was up 10% at INR 12.95 billion. Info Edge's board today recommended interim dividend of INR 12 per share, and fixed Nov. 20 as the record date.
On Friday, shares of Info Edge India closed at INR 7,654.60 on the National Stock Exchange, down 3.1% from the previous close. End
Edited by Avishek Dutta
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