Info Edge Slips Into The Red In Q4 FY23, Posts Net Loss Of INR 503.2 Cr

SUMMARY

Info Edge’s bottom line was hit by a negative other income of INR 435.1 Cr, accounting for the mark-to-market losses in investments held by controlled trusts

The company also posted an exceptional loss of INR 97.5 Cr Q4 FY23 as it wrote off its entire investment of INR 76.6 Cr in BizCrum Infotech, which operates B2B marketplace Bijnis

Info Edge’s sales revenue grew around 28% year-on-year to INR 604.8 Cr in Q4 FY23

Online classifieds major Info Edge slipped into the red in the March quarter of the financial year 2022-23 (Q4 FY23), posting a consolidated net loss of INR 503.2 Cr. The company’s bottom line was hit by a negative other income of INR 435.1 Cr, accounting for the mark-to-market losses in investments held by controlled trusts, and the continuing slowdown in billing business for IT recruitment service.

Info Edge had reported a net profit of INR 719.5 Cr in the March quarter of the previous year. In Q3 FY23, Info Edge’s net profit plummeted nearly 99% year-on-year (YoY) to INR 46.4 Cr following an exceptional loss of INR 412 Cr on account of impairment of its entire investment in Rahul Yadav’s 4B Networks.

Info Edge also posted an exceptional loss of INR 97.5 Cr Q4 FY23 as it wrote off its entire investment of INR 76.6 Cr in BizCrum Infotech, which operates B2B marketplace Bijnis. The impairment of investments in 4B Networks also added to this loss during the quarter.

Meanwhile, Info Edge’s sales revenue grew around 28% year-on-year (YoY) to INR 604.8 Cr in Q4 FY23. Sequentially, it grew 2.6% from INR 589.5 Cr reported in Q3 FY23.

Overall, in FY23, Info Edge’s operating revenue increased to INR 2,345.7 Cr from INR 1,589 Cr in the prior fiscal. Its net loss stood at INR 70.5 Cr in the year as against a profit of INR 12,882.2 Cr in FY22.

Info Edge operates real estate portal 99acres.com, online recruitment platform Naukri.com, matrimony portal Jeevansathi.com, and education platform Shiksha.

Shiksha’s revenue increased 31.1% YoY to INR 32 Cr in Q4 FY23, while 99acres’ revenue zoomed 23.3% YoY to INR 75.5 Cr in the quarter. Jeevansathi reported a revenue of INR 18.8 Cr, down 26.2%.

Total billing for the quarter under review stood at INR 748.6 Cr, up 15.3% YoY. Billing in the recruitment solutions vertical saw a 13.7% YoY growth at INR 583.5 Cr in Q4 FY23.

“Billing growth continues to be impacted by slowdown in IT hiring. The rest of the economy continues to be solid,” said Hitesh Oberoi, MD and CEO of Info Edge, in a statement.

The company’s expenses also shot up over 20% YoY to INR 441 Cr in Q4 FY23, with employee benefit expenses accounting for the majority of its.

Info Edge spent INR 263.9 Cr towards employee benefit expenses in Q4 FY23 as against INR 220.2 Cr in the corresponding quarter of the previous fiscal.

Its advertising and promotional expenses also jumped to INR 101.8 Cr in the reported quarter from INR 97.7 Cr in the Q4 FY22.

Info Edge shares closed Friday’s trading at 4,198.7, up 7.6% on the BSE.