Info Edge Records 50% Decline in Q1 Net Profit Amidst Naukri's Sluggish Billing Performance

Info Edge, a leading consumer internet firm, has released its consolidated financial results for the first quarter of FY24, revealing both challenges and growth. The company reported a net profit of Rs 147 crore, reflecting a 50% year-on-year decline compared to the same period last year. The CEO, Hitesh Oberoi, attributed this dip to headwinds in IT hiring for its flagship business, Naukri. However, he highlighted the positive performance in non-IT hiring and the strong growth of 99acres and Jeevansathi, thanks to strategic measures like the Freemium strategy, which curtailed marketing spend and reduced burn.

Consolidated revenues for the quarter reached Rs 626 crore, demonstrating a notable 15% year-on-year growth. Info Edge operates across four core sectors—recruitment, real estate, matrimony, and education. Despite a slight 0.2% year-on-year dip in billing to Rs 523 crore, the recruitment business saw revenues increase by 15.3%, and the real estate business experienced a robust growth of 24.6%.

On a standalone basis, the company achieved an impressive 37.2% growth in operating profit, amounting to Rs 208.9 crore, for the quarter ending June 30, 2023. This marked improvement compared to the profit of Rs 152.3 crore in the same quarter of the previous fiscal year. Furthermore, Info Edge's standalone business generated a cash flow from operations of Rs 144.6 crore for the quarter.

Chintan Thakkar, Info Edge's CFO, emphasized that despite challenges in IT recruitment, prudent spending strategies in businesses like 99acres, Shiksha, and Jeevansathi played a pivotal role in generating a significant Rs 145 crore cash from operations in Q1 FY24. The company's results underscore its ability to navigate a complex landscape while strategically focusing on growth and financial stability.