Shares of Info Edge India rose over 7 percent on January 31 after the company reported robust growth in revenues for the quarter ended December 2021.
Info Edge on January 28 posted a 48 percent on-year growth in revenues to Rs 403 crore for the third quarter on the back of strong performance of its recruitment business.
The recruitment solutions business reported an 80 percent on-year jump in billings to Rs 375 crore of which Rs 308 crore came from Naukri.com alone. Even Siksha.com, its education solutions business, reported a 51 percent year-on-year growth in sales.
“This is the third quarter in a row that has witnessed stellar billing growth and great momentum, particularly in the recruitment business. The sustained focus on growing efficiently and investing for the future is reflected in our swelling billings and cash profits,” said Chintan Thakkar, whole-time director and Chief Financial Officer at Info Edge.
Operating performance of the company, however, was less-than-convincing. It reported an operating margin of 28.7 percent, which was down 240 basis points on-quarter and sharply below the Motilal Oswal Financial Services estimate of 30.8 per cent.
Brokerage firm Goldman Sachs retained its ‘sell’ rating on the stock with a price target of Rs 4,200 as it expects competitive intensity across several vertical of Info Edge India to remain elevated.
Goldman Sachs has raised its revenue growth projections for the company by 6 percent given the strong growth in sales in the December quarter.At 11:10 am, the shares of Info Edge India were up 6.7 percent at Rs 4,700 on the National Stock Exchange.
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