Info Edge’s Q2 Profit Declines 64.6% To INR 85 Cr

Online classified company Info Edge reported a 64.6% decline in its net profit to INR 84.73 Cr in the September quarter of the financial year 2024-25 (Q2 FY25) from INR 239.74 Cr in the same quarter last year.

The Sanjeev Bikhchandani-led company also saw a 67% decrease in its bottomline on a quarter-on-quarter basis from INR 258.85 Cr in the April to June quarter.

On the other hand, revenue from operations increased nearly 12% to INR 700.82 Cr during the quarter under review, compared to INR 625.84 Cr in the year-ago period.

Sequentially, operating revenue rose 3.5% from INR 676.70 Cr in the first quarter of the ongoing financial year.

Founded in 1995 by Bikhchandani, Info Edge is one of India’s oldest internet-based companies, which operates across sectors such as recruitment (Naukri), real estate (99acres), matrimony (Jeevansathi) and education (Shiksha).

It counts listed giants such as foodtech major Zomato, insurtech startup PB Fintech, and unlisted edtech company Adda247 among its portfolio companies. 

Hitesh Oberoi, managing director and CEO of Info Edge, said, “We are pleased to see double digit billings growth in the recruitment business after several weak quarters. Increased cash generation from this segment, coupled with reduced losses in our non-recruitment businesses, position us strongly for sustainable growth.”

Segment Revenue

The company’s revenue from recruitment services (Naukri) rose 10% to INR 515.09 Cr in the reported quarter, compared to INR 467.97 Cr in Q2 FY24. Sequentially, it rose 5.7% from INR 487.17 Cr in the quarter ended June 2024.

Its real estate vertical 99acres generated revenues to the tune of INR 102.03 Cr in the July to September quarter, up nearly 17% from INR 87.28 Cr in the year-ago quarter. On a quarterly basis, it rose 3.2% from INR 98.79 Cr in the first quarter of the ongoing fiscal year.

Revenue from other businesses, including education and matrimony, increased to INR 83.69 Cr in Q2 FY25, compared to INR 70.58 Cr in the year-ago period. However, on a QoQ basis, it declined from INR 90.73 Cr in the previous quarter.

A Closer Look At Info Edge’s Q2 Expenses

The company’s total expenses surged to INR 492.11 Cr in the reported quarter, up 8% from INR 455.34 Cr in the corresponding quarter last year, with employee costs emerging as the biggest expense head.

Employee Benefits Expense: Info Edge spent INR 305.78 Cr in employee costs during the quarter under review, a more than 10% increase from INR 276.40 Cr in the year-ago period.

Network, Internet And Other Charges: The company’s expenses under this head rose 4.6% to INR 19.14 Cr in Q2 FY25 from INR 18.29 Cr in the corresponding quarter last year.

Advertising And Promotion Cost: The IPO-bound logistics unicorn’s spending in this bracket increased 5.2% to INR 91 Cr from INR 86.47 Cr in the year-ago quarter.