Info Edge’s board has elevated the firm’s COO Hitesh Oberoi to the role of managing director and CEO replacing founder Sanjeev Bikhchandani. Bikhchandani, who owns 43% stake in the firm, will remain in the company transitioning to the role of Founder and Executive Vice Chairman.
He will focus primarily on strategic matters, investments and acquisitions while the new CEO will oversee the current businesses of the company. Ambarish Raghuvanshi, the current CFO, will transition to the role of Group President Finance and CFO. These changes shall take effect from Monday, July 26.
Pick up in economic activity that has boosted demand for real estate as also employee movement within the country has also started reflecting in revenues of Info Edge (India) Limited that runs the web recruitment portal Naukri.com besides other internet properties such as 99acres.com.
The firm that had seen total quarterly income get stuck in the Rs 60-65 crore bracket through much of year ended March’10, appears to have passed through the hump for the second consecutive quarter and has also effected a top management shuffle to steer through the next phase of growth.
The firm has reported total Income of Rs 72.4 crore for the three months to end June, up 17% over the corresponding quarter last year. Profit after tax rose 30% to Rs 17.3 crore while net profit(from operations) was up 72% to Rs 12.6 crore.
Operating EBITDA rose 58.7% to Rs 20.4 crore for the quarter ended June 30, 2010, over the year ago period.
Ambarish Raghuvanshi, CFO and Director, Info Edge (India) Limited, said, “The business environment especially for hiring and real estate continues to improve, leading to a spike in the topline. The lead indicators e.g. business confidence, GDP, Naukri Job Speak Index are
all up which augurs well for our businesses. Also, the adjustments and gains we made during 2008-09 and 2009-10 will hold us in good stead as markets improve.”
Meanwhile, deferred sales revenue a part of current liabilities and a lead indicator of health of the businesses, increased to Rs 61.2 crore as of June 30, up 35% over the corresponding number last year.
Income from recruitment solutions grew 24% while 99acres.com businesses grew 80% during the quarter. Other verticals apart from Naukri.com (including 99acres.com, Jeevansathi.com) reduced their losses to Rs 2.5 crore at the EBITDA level compared to a loss of Rs 4.4 crore for the same quarter last year. Although expenses increased for the quarter, a large proportion of it was due to employee costs.