Info Edge Q1 Net rises 10.5 percent to Rs 232 crore, Jeevansaathi nears breakeven

Both recruitment as well as non-recruitment businesses of Info Edge reported strong revenue growth, with the match-making vertical Jeevansathi nearing breakeven in June quarter.

Info Edge - a major player in the online classified business - recorded revenue from operations worth Rs 638.90 crore, higher by 5 percent compared to a year ago on consolidated basis, while net profit grew by 10.5 percent YoY to Rs 232.29 crore.

The company managed to maintain its operating profit margin at 35.6% of revenue and saw a growth of 8.8% in operating profit for the June quarter.

Both recruitment as well as non-recruitment businesses at Info Edge reported strong revenue growth, with the match-making vertical Jeevansathi nearing breakeven in June quarter. The management said Naukri is generating nearly Rs 1,000 crore in EBITDA every year, and the company is sitting on nearly Rs 4,500 cr worth of cash.

Shares of Info Edge were higher by 3.5 percent at 2:55pm, on August 9.

Info Edge CEO Hitesh Oberoi told CNBC-TV18 during a conversation post earnings that the worst may be over for Naukri's business, and Jeevansaathi vertical is nearing breakeven. The company is targetting profitability for Shiksha, the education business, and aiming for 18-20 percent revenue growth.

Info Edge Business Verticals in Q1FY25

The cash generated from operations rose by 20 percent YoY at Rs 174 crore, despite a challenging environment. "This consistent cash flow generation highlights our company's robust financial health and establishes a solid foundation for future investments and shareholder returns," said Chintan Thakkar, Chief Financial Officer.

Hitesh Oberoi, Managing Director and Chief Executive Officer of Info Edge said, "Cash losses from our non-recruitment businesses have decreased by 73% to Rs 16.5 crore in Q1FY25, driven by an 18% YoY increase in billings and controlled cost increase."

On the value of Info Edge's stake in Zomato rising to a third of the company's market capitalisation, CEO Hitesh Oberoi said that Zomato's rise has surprised everybody, and the company has a huge opportunity ahead. Reposing faith in the management, Oberoi said unless there is a good use for the cash, they do not intend to dilute Info Edge's stake in Zomato.

Aside of Zomato, Info Edge also has financial investments in PB Fintech, Shopkirana, Shipsy and Adda247. The total cost of

investments in Zomato and PB Fintech is Rs 722.3 crore. As of

March 31, the market value of Info Edge's stake in these two entities was Rs 28,304.1 crore in FY24.