Info Edge, the parent company of job site Naukri.com, on Friday reported a more than 32% increase in net profit for the quarter ended June 30 compared with a year earlier, supported by revenue growth in both its recruitment and non-recruitment businesses.
The Noida-based firm’s net profit rose to Rs 342.8 crore from Rs 258.8 crore in the first quarter of last fiscal year. Consolidated operating revenue increased 17% to Rs 790.8 crore.
Sequentially, however, net profit nearly halved from Rs 677.8 crore, primarily due to slower billing growth in its recruitment business and higher expenses related to marketing and employee benefits.
Billings from Info Edge’s core recruitment business grew 9% year-on-year to Rs 470 crore, but moderated from the previous quarter’s 18.4% expansion. Managing director and chief executive Hitesh Oberoi attributed this slowdown to macroeconomic challenges, including geopolitical uncertainties and softness in sector-specific demand, which have affected investment decisions of companies.
“We observed a trend of contract deferrals by some clients towards the end of the quarter which is usually the peak period for closures. As a result, renewal activity was impacted, leading to a moderation in overall billings growth,” he said at the quarterly earnings call.
“Despite the recent moderation in recruitment billings, we remain cautiously optimistic about growth momentum in the quarters ahead,” he added.
The company’s non-recruitment portfolio, which includes real estate listing platform 99acres, matrimony service Jeevansathi and education portal Shiksha, recorded combined billing growth of 17.6% during the quarter, according to an investor presentation.
Info Edge’s total income rose to Rs 1,004 crore for the quarter from Rs 827 crore a year ago, while expenses increased to Rs 563.8 crore from Rs 484.5 crore. Employee benefit expenses and advertising costs surged 11.7% and 26.8%, respectively.
Oberoi cited an advertising campaign during the Indian Premier League for increased marketing expenses on Naukri, and said it plans to moderate spending in this segment. However, it believes businesses such as 99acres and Jeevansathi require increased marketing investments to gain greater market share.
Revenue from the recruitment solutions business, including Naukri.com, grew 15% YoY to Rs 562 crore. Revenue from 99acres increased 12% to Rs 110.6 crore. Other businesses, including Jeevansathi and Shiksha, grew 30%.
Regarding the impact of artificial intelligence on the job market, Oberoi said although AI adoption is still in early stages, there is a noticeable softness in demand. He cited a slowdown in hiring and business activity in certain domestic non-IT industries as well as IT services companies. “What we are sensing right now is that there seems to be more demand for premium talent than regular sort of job seekers.”
Info Edge, an early investor in the Indian startup ecosystem with stakes in companies such as Eternal and PB Fintech, recently secured shareholder approval to invest up to Rs 1,000 crore in its Info Edge Ventures Fund III to ramp up startup investments.
According to the company’s investor presentation, it currently holds 20 active investments in unlisted startups with a total carrying value of Rs 639 crore.
Shares of Info Edge ended at Rs 1,332.50 on the BSE on Friday, down 2.1% from the previous close.
The Noida-based firm’s net profit rose to Rs 342.8 crore from Rs 258.8 crore in the first quarter of last fiscal year. Consolidated operating revenue increased 17% to Rs 790.8 crore.
Sequentially, however, net profit nearly halved from Rs 677.8 crore, primarily due to slower billing growth in its recruitment business and higher expenses related to marketing and employee benefits.
Billings from Info Edge’s core recruitment business grew 9% year-on-year to Rs 470 crore, but moderated from the previous quarter’s 18.4% expansion. Managing director and chief executive Hitesh Oberoi attributed this slowdown to macroeconomic challenges, including geopolitical uncertainties and softness in sector-specific demand, which have affected investment decisions of companies.
“We observed a trend of contract deferrals by some clients towards the end of the quarter which is usually the peak period for closures. As a result, renewal activity was impacted, leading to a moderation in overall billings growth,” he said at the quarterly earnings call.
“Despite the recent moderation in recruitment billings, we remain cautiously optimistic about growth momentum in the quarters ahead,” he added.
The company’s non-recruitment portfolio, which includes real estate listing platform 99acres, matrimony service Jeevansathi and education portal Shiksha, recorded combined billing growth of 17.6% during the quarter, according to an investor presentation.
Info Edge’s total income rose to Rs 1,004 crore for the quarter from Rs 827 crore a year ago, while expenses increased to Rs 563.8 crore from Rs 484.5 crore. Employee benefit expenses and advertising costs surged 11.7% and 26.8%, respectively.
Oberoi cited an advertising campaign during the Indian Premier League for increased marketing expenses on Naukri, and said it plans to moderate spending in this segment. However, it believes businesses such as 99acres and Jeevansathi require increased marketing investments to gain greater market share.
Revenue from the recruitment solutions business, including Naukri.com, grew 15% YoY to Rs 562 crore. Revenue from 99acres increased 12% to Rs 110.6 crore. Other businesses, including Jeevansathi and Shiksha, grew 30%.
Regarding the impact of artificial intelligence on the job market, Oberoi said although AI adoption is still in early stages, there is a noticeable softness in demand. He cited a slowdown in hiring and business activity in certain domestic non-IT industries as well as IT services companies. “What we are sensing right now is that there seems to be more demand for premium talent than regular sort of job seekers.”
Info Edge, an early investor in the Indian startup ecosystem with stakes in companies such as Eternal and PB Fintech, recently secured shareholder approval to invest up to Rs 1,000 crore in its Info Edge Ventures Fund III to ramp up startup investments.
According to the company’s investor presentation, it currently holds 20 active investments in unlisted startups with a total carrying value of Rs 639 crore.
Shares of Info Edge ended at Rs 1,332.50 on the BSE on Friday, down 2.1% from the previous close.
