Shares of Naukri.com parent Info Edge (India) sank in trade on Wednesday, May 28, after the firm announced its earnings show for the three months ended March of the financial year 2024-25 (Q4FY25).
Info Edge's net profit jumped 647 percent to over Rs 740 crore during the quarter, compared to Rs 162 crore in the same quarter last year. The multi-fold jump was on account of a joint venture being reclassified as financial investments, other income, which was partially offset by provisions and impairments of about Rs 127 crore.
Revenue from operations increased 13 percent to Rs 750 crore year-on-year (YoY).
"After a muted start, recruitment billings accelerated well quarter-over-quarter, growing over 18% in Q4. Our non-recruitment businesses also sustained their momentum, gaining market share over the past few quarters and turning cash positive for the full year," Hitesh Oberoi, managing director and CEO of Info Edge, said.
At 9.45 am, shares of the firm were quoting Rs 1,420, down 2.2 percent on the NSE compared to the previous session's closing price.
Should you buy, sell, or hold Info Edge (India) shares?
Info Edge delivered a steady 4QFY25, with healthy momentum across both recruitment and non-recruitment businesses. Recruitment billings grew across key segments – IT Services and GCCs – all clocking high-teens growth.
"Interestingly, non-tech sectors such as BFSI, healthcare, and infrastructure also posted strong double-digit gains, which we believe point to early signs of a more balanced hiring recovery beyond traditional tech-heavy segments," said Motilal Oswal.
The brokerage reiterated its 'neutral' rating on the stock with a target price of Rs 1,350, implying an 8 percent downside.
Billing growth continues to post an improving growth trajectory with revenue growth catching up. Margins may face near-term pressure as management prioritises higher A&P spending alongside ongoing investments in AI, said Nuvama Institutional Equities.
The brokerage trimmed its target price to Rs 1,700 per share, down from Rs 1,820, adjusted for the split, while keeping its 'buy' rating intact.
Nomura also lowered its price target on the firm to Rs 1,670 (down from Rs 1,702) due to lower profitability of the core business and lower target market cap for its investment in Eternal.
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