Info Edge India shares gained 7.6 percent on May 26 after the internet company turned profitable in the March FY23 quarter on a standalone basis with sustaining operating margin despite tepid revenue growth. The stock closed at Rs 4,197.75 on the NSE.
The standalone profit stood at Rs 178.93 crore for the fourth quarter of FY23, against a loss of Rs 84.26 crore in the previous quarter. In Q3FY23, the company had a one-time exceptional loss of Rs 276 crore due to the impairment of investment in 4B Networks, a partly-owned subsidiary of its 100 percent subsidiary Allcheckdeals India, which impacted bottomline.
For the March FY23 quarter, it reported an exceptional loss of Rs 18.7 crore including Rs 13.7 crore related to the abovementioned impairment of investment in 4B Networks.
Revenue from operations on a standalone basis at Rs 564 crore grew by 1.6 percent over the previous quarter with Naukri.com recording just 0.2 percent sequential growth at Rs 437.6 crore in the same period.
Info Edge said Naukri India attained the milestone of having 1,25,000 unique customers. The business realized an ARPU (average revenue per user) of 1,10,000 during FY23.
"Recruitment business is witnessing cautious spending environment from its IT customers. Domestic driven segments will provide a pull through for next few quarters," it added.
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The real estate services business operating under 99acres grew by 3.6 percent QoQ to Rs 75.5 crore, while other segments comprising jeevansathi.com and shiksha.com recorded 11.6 percent sequential growth at Rs 50.8 crore for the March quarter.
On a year-on-year basis, the standalone bottomline growth was 48.2 percent and the topline grew by 23.8 percent, with the recruitment business (Naukri) growing 27 percent. Naukri business contributed 77 percent to the topline.
At the operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) increased by 1.6 percent quarter-on-quarter to Rs 220.3 crore with a margin flat at 39 percent, while on-year basis, EBITDA grew by 72 percent with a margin expansion of 1,090 bps.
On a consolidated basis, Info Edge has posted a loss of Rs 272.8 crore for the fourth quarter of FY23, widening from Rs 116.5 crore in the previous quarter. Revenue from operations in the same period increased by 2.6 percent to Rs 604.8 crore.