IGI Logo

Maintains strong operating performance led by the core recruitment business

Result Synopsis

Info Edge(India) (INFOE) reported strong financial performance for the quarter. Both, sequential revenue growth and EBITDA margin were broadly as per estimates. Revenue grew by 4.8% QoQ, led by 8.0% QoQ growth in the revenue of Recruitment business Consolidated Billing remained strong as it grew by 31% YoY. There was sequential increase in EBITDA margin(up 246 bps QoQ) on account of control on A&P expense. Added 2mn resumes (QoQ) in the quarter to end at 86mn resumes.

The robust hiring activity in IT and non? IT sectors continue to power the Recruitment business. The recovery in real estate market continues to be on track and would support the performance of 99acres.com. We expect that, with change in business strategy for Jeevansathi.com, the engagement levels should pick up going ahead. Also, Shiksha, the education segment, has seen strong traction recently and is expected to sustain the momentum. Positive operating leverage should support margin in medium term. It is expected to continue to make tech related investments to drive business growth and maintain its leadership position across segments and also best placed to benefit from growing digitalization of Indian economy. The shift in market share towards organized players would also support growth trajectory of the company. We estimate revenue CAGR of 27.6% over FY22?24E with average EBITDA margin of 33.3% over the period. We maintain our BUY rating on the stock with revised target price of Rs 5,380/share based on SOTP method. The stock trades at P/E of 86.9x/74.5x on FY23E/FY24E on standalone basis

Result Highlights

? Reported revenue of Rs. 5,318 million. (Up 51.2% YoY, 4.8% QoQ). The sequential revenue growth was led by 8.0% QoQ growth in the revenue of Recruitment business to Rs 4,181 Mn (78.6% of revenue); while 99acres grew 5.1% QoQ to Rs 697 Mn (13.1% of revenue).

? Added 2mn resumes (QoQ) in the Quarter to end at 86mn resumes, with 23k resumes added daily in the quarter compared to 20k resumes added daily in Q1FY23.

? Number of listings on the 99acres platform dipped by 5.1% QoQ to 1,052k.

? Reported robust billings of Rs 5,429 Mn (up 31.4% YoY), led by 41.0% YoY increase in billings in Recruitment business.

? EBITDA margin increased by 246 bps QoQ to 34.6%, led by lower advertising cost in the quarter (down 160 bps QoQ as % of revenue).

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://yesinvest.in/privacy_policy_disclaimers
SEBI Registration number is INZ000185632

Above views are of the author and not of the website kindly read disclaimer