Infoedge Q3 Results : Sees Slowdown In Growth, Net Sales Down 10%
InfoEdge Ltd, one of the largest internet companies in India and the owner of jobs portal Naukri.com, has reported a net profit of Rs 17.21 crore for the quarter ending December 31st 2008, which is up Rs 13.09 crore during the same quarter last year. However, the sales showed a decline of 9.95% compared to the Q2 in 2008, though it is up 7.13% year on year. Net sales in Q3 were at Rs 58.9 million up from Rs 54.79 crore in the same quarter last year.
Sanjeev Bhikchandani, CEO, Info Edge, admitted that it was a difficult quarter stating that the company "saw a credit squeeze in October and November. We resulted in slower growth in top line over last year as opposed to what we had expected."
Though company's EBITDA increased by 25.83% at Rs 21.69 crore, its operating EBITDA was down by 3.7%. Bhikchandani attributed the fall in operating EBITDA to the continued investments in new businesses and the launch of Shiksha, an education portal this year. Shiksha.com provides information for over 70,000 colleges, courses, scholarships and admission notifications.
Bhikchandani added that the demand for the services of naukri.com as well as 99acres.com is subdued. Hiring in general has been lower as compared to last year. Recruitment business of the company accounted for 84% of operating top line as opposed to 89% in the same quarter last year. "This reflects the kind of slowdown in hiring which has adversely impacted growth in our recruitment businesses a lot more than our other businesses," he said, commenting on the fall in the contribution of recruitment business in the operating top line.
Other businesses of Info Edge, apart from the recruitment business , which consist of Jeevansaathi.com, 99acres.com and a small amount from all check deals from Shiksha accounted for 16% in top line as compared to the 11% in the previous year. The share of recruitment declined and that of the other verticals went up.
Naukri.com's EBITDA margin continues to be robust. It is at 45.8% up from 41.7% a year ago. During Q3, 13,600 resumes were added daily as compared to 16,500 resumes added during Q2.
According to Bhikchandani, the reason for the fall in the daily additions of resumes is partly seasonal and partly because in a slowdown, candidates tend to be averse and prefer to avoid risks and to not switch jobs.