Info Edge India Ltd, the owners of online consumer service web portals such as Naukri.com, Jeevansathi.com and 99acres.com, has reported 6% growth in revenues and 10% increase in net profit for the quarter ended September’09 on a sequential basis, after three straight sequential quarters of decline in top line.
This probably indicates that the online consumer services businesses are also coming out of the economic slowdown which affected ad rates as well as demand as corporate clients put on a freeze on hiring.
Net profit for the second quarter stood at Rs 14.73 crore with net revenues of Rs 55.18 crore as compared to net profit of Rs 13.3 crore and net revenues of Rs 52.9 crore in the preceding quarter ended June’09. However, on a year on year basis, both profit and revenues was down (by 5% and 15% respectively).
Earning per share moved up from Rs 4.87 in the first quarter of the year to Rs 5.4.
The company, which counts ace venture capitalist Ram Shriram’s Sherpalo Ventures as an investor, raised Rs 170 crore through a public float in November 2006 and has disclosed that it has utilised Rs 70 crore or less than half of the amount till date. The money was invested in purchase of land, strategic alliances and diversification into new business. Info Edge, formerly an ICICI Ventures funded company, also raised funding from Kleiner Perkins Caufield & Byers.
The first venture capital-backed online company, listed in the Bombay Stock Exchange (BSE), operates nine online platforms.
Ambarish Raghuvanshi, CFO and director of Info Edge, says, the drop in top line revenues and operating income reflects the changed scenario from the last year. However, he said that the hiring environment will continue to improve gradually in coming quarters. “The improvement is reflected in growth based on sequential quarter,” said Raghuvanshi.