Internet company Info Edge (India) on May 26 posted a consolidated loss of Rs 272.8 crore for quarter ended Q4FY23, widening from Rs 116.5 crore sequentially. However, the company had posted a loss of Rs 629 crore Q4Fy22, which has narrowed.
The company's stock price closed 13.3 percent higher from the days lows post the numbers were released, closing at Rs 4,168 as the company's billings grew 15.3 percent year-on-year, defying the street's expectations of remaining flat or contracting amid a slowdown in IT hiring. Billings revenue in the recruitment business came in at Rs 583.5 cr, an increase of 13.7 percent from the year-ago period.
Across its businesses, billings stood at Rs 748.6 crore, up 15.3 percent year-on-year.
Revenues for the year also crossed Rs 2,000 crore, coming in at Rs 2,158.6 Cr, which was a YoY growth of 38.16 percent.
The pain in IT hiring is particularly evident, as the industry faces headwinds and has slowed down hiring significantly as attrition comes off and demand slows down. According to Info Ede Managing Director and Chief Executive Officer Hitesh Oberoi, billing growth continues to be impacted by the slowdown in IT hiring, which the company referred to last quarter in its commentary as well.
"Billing growth continues to be impacted by slowdown in IT hiring. The rest of the economy continues to be solid. We are particularly happy with the performance of non-recruitment businesses," he said.
The company said that the recruitment business is witnessing a cautious spending environment from its IT customers, and domestic-driven segments will provide the pull-through for the next few quarters.
Consolidated revenue from operations grew by 2.6 percent quarter-on-quarter to Rs 604.8 crore in Q4FY23, with the recruitment solutions business reporting a 1.4 percent sequential growth at Rs 460 crore. The company's real estate business, 99acres saw revenue growth at 3.6 percent to Rs 75.5 crore in Q4FY23.
The weak operating performance also caused loss at bottom line. Consolidated EBITDA (earnings before interest, tax, depreciation and amortisation) fell by 1.6 percent QoQ to Rs 185.5 crore with margin falling 131 bps to 30.67 percent in the March FY23 quarter.
For the year, the internet company recorded loss of Rs 107.4 crore, against profit of Rs 1,276 crore, but revenue from operations grew sharply by 48 percent to Rs 2,346 crore compared to previous year. Its profits in the last year were also inflated due to the listing of both PB Fintech and Zomato in Fy22.
Info Edge has announced a final dividend of Rs 9 per share for the financial year 2022-23.