Naukri parent Info Edge gained eight percent in trade on May 17, after the firm's bottom-line swung into the black for the quarter ended March.
Info Edge’s consolidated revenue rose nine percent to Rs 657 crore during the period. It registered a net profit of Rs 162 crore in Q4, compared to a loss of Rs 447 crore in the year-ago period.
Info Edge saw its recruitment business revenue grow a modest five percent on-year to Rs 481 crore in the March quarter.
The increase in profit comes despite FY24 being the first year in two decades when three of India's largest information technology (IT) services firms saw their headcounts drop.
At 11.25 am, shares of Info Edge were quoting Rs 6,219.65, higher by six percent on the NSE compared to the previous close.
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"Attrition at IT Services companies has further reduced in Q4 while
utilisation increased further. We believe hiring by IT companies shall improve further, which shall lead to billing growth acceleration," said Nuvama Institutional Equities.
Kotak Institutional Equities said, "Naukri billings growth of 7 percent YoY was a positive with the company witnessing higher job postings from IT companies. 99acres seems to be turning a corner and posted a cash profit in 4Q. We model lower losses in 99acres resulting in EPS increase."
Nuvama maintained its buy call on the player, increasing the target price to Rs 7,050, up from Rs 6,500, impying an upside of 20 percent.
Kotak also raised its target price on Info Edge to Rs 6,550 per share, up from Rs 6,300 apiece, indicating an upside of around 10.8 percent.
Over the past year, Info Edge (India) shares have gained around 62 percent, as against a 23 percent rise in the benchmark Nifty 50 index.
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