Info Edge (India) Ltd, which operates job portal Naukri, real estate site 99acres, online matrimonial platform Jeevansaathi, and has a major stake in Zomato posted a 7% increase in operational revenues in the second quarter of FY 2017-18 compared with the same quarter a year ago. As per the company’s latest filings, operational revenues rose to $34.7 Mn (INR 225.2 Cr) in the latest quarter from $32.4 Mn (INR 209.9 Cr) in Q2 2016.
However the company’s net profit declined by 1.8% to $12.1 Mn (INR 78.6 Cr) in the quarter ended 30 September 2017 from $12.35 Mn (INR 80 Cr) in the same period last year. This was due to some tax reversal gains in the previous year.
The gain in revenue came on the back of rise in net sales of the firm’s recruitment solutions division, which includes Naukri, which increased to $25.4 Mn (INR 164.7 Cr), compared with $23.99 Mn (INR 155.4 Cr) last year same time. Also, billing revenues for InfoEdge grew to $31.26 Mn (INR 202.5 Cr) up 9% from the $28.67 Mn (INR 185.7 Cr) clocked last year same time.
Chintan Thakkar, CFO Info Edge, in a statement to the exchanges stated, “Billing of recruitment solutions and Jeevansaathi grew at 14% and 19% respectively over the same quarter of the previous year. Operating expenses are flat straight for the sixth quarter and the 99acres segment turned EBITDA positive resulting in growth in operating EBITDA.”
Similarly, real estate portal 99acres posted a marginal increase in net sales to $5.03 Mn(INR 32.6 Cr) in the quarter compared to $4.75 Mn(INR 30.8 Cr) last year in the same quarter.
Info Edge also managed to cut down its advertising and promotional costs to $2.7 Mn (INR 17.7 Cr) from $3.92 Mn (INR 25.4 Cr), sequentially. This capping of expenses helped the company improve its margin show with EBITDA rising 28% to $12.8 Mn (INR 83 Cr) from same time last year.
Though Info Edge’s gains came on the back of gains by Naukri, Jeevansathi, and 99acres, however it is to be noted that its investment Zomato is also continuing its growth trajectory and is expected to continue doing so. In June, Zomato witnessed a 34% decrease in its total losses for 2016-2017. Besides Zomato, Info Edge is also an investor in PolicyBazaar, online photography startup Canvera, online beauty services provider BigStylist and online gifting site HappilyUnmarried.