Job mkt improving; see jump in hiring ahead: Info Edge

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Job mkt improving; see jump in hiring ahead: Info Edge

In an interview with CNBC-TV18, Hitesh Oberoi, COO, InfoEdge spoke about the job scene in India in 2010, their marketing alliance with The Wall Street Journal, and gave an outlook on the company's business.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » RELATED NEWS Info Edge Q3 net profit up at Rs 15.6 cr ALSO READ See latest News about Info Edge See previous management interviews See what other Experts & Brokerages are saying about Info Edge Info Edge BSE | NSE 31/05/12 Are Mutual Funds betting on Info Edge?

Q: The outlook is very positive. Phenomenal salaries have been announced, Nomura is giving an Rs 80 lakh package to IIM graduate and Barclays are offering about Rs 40-50 lakhs. What is the kind of upmove that you are seeing exactly in the IT and IT enabled services vis-à-vis the December levels?

A: There are some segments within IT which are coming back. I was in Bangalore a couple of days back and our sales people are saying that the semi conductor segment is looking up once again. The foreign IT services companies have been hiring throughout the slowdown. They have never slowed down. Indian IT services companies have started hiring as well. The BPO segment is doing very well.

So while the voice business may not be growing fantastically, but the non-voice the KPOs, the LPOs, these kinds of businesses are doing well. The financial services sort of BPOs, that business is picking up once again. It is probably growing faster than IT services at this point in time.

Q: Give us an idea of what all this means in terms of financials for you- both what does WSJ bring to the table in terms of money and what do this heightened interest in hiring mean to you in terms of numbers. Give us an idea of how Q4 will turnout; give us an idea on how you expect FY11, atleast the first two quarters to turnout?

A: WSJ is a pure marketing alliance. There is no money being exchanged anywhere. So that is just an alliance and nothing else and we will see how that moves going forward.

As far as our Q4 is concerned and the next year is concerned, we expect Q4 to be much better than last year in terms of topline. We grew at -18% (minus) in the first half of this year and in Q3 we almost sort of did the same number as last year. So we improved substantially from Q2 to Q3 and we expect this improvement to continue although on a lower base in Q4.

As far as next year is concerned, if the economy continues to grow at 8-8.5% which is what most people are saying then we should do well because hiring will pick up as you know that attrition rates are moving up across companies and across sectors. So that will lead to a jump in hiring and that will improve our business as well.