Info Edge, the prominent consumer internet company, has reported a remarkable net profit of Rs 205 crore for the second quarter of the current fiscal year, marking a substantial doubling of its earnings compared to the previous year. This surge in profitability was greatly influenced by a one-time gain of Rs 46 crore. During the period spanning from July to September 2022, Info Edge achieved a profit of Rs 103 crore. Nevertheless, when examining the company’s consolidated revenue growth in the second quarter, it recorded a modest increase, amounting to Rs 626 crore, representing a mere 4% growth in comparison to the same period in the previous year.
The subdued revenue growth can largely be attributed to a deceleration in Info Edge’s flagship recruitment business, Naukri. Naukri, which serves as the company’s primary revenue driver, experienced an 8% year-on-year growth during the second quarter. However, a comparison of this revenue with the first quarter of the fiscal year reveals a stagnation in the growth rate.
Info Edge observed a more substantial upswing in revenue from its real estate and matrimony services verticals, despite these segments having a smaller revenue base. In particular, the real estate vertical, represented by 99acres.com, achieved a noteworthy revenue growth of 25.2% during the second quarter.
Commenting on the company’s performance, Info Edge’s CEO, Hitesh Oberoi, noted, “Good execution in 99acres and Jeevansathi business helped reduce burn in these verticals substantially during the quarter. The non-IT hiring market continued to be strong, but a slowdown in IT hiring dragged down Naukri’s growth.”
The Indian IT industry, as a whole, experienced a muted financial performance during the second quarter of the fiscal year 2023-24. This lackluster performance led to companies such as Infosys, Wipro, HCL, and TCS witnessing a reduction in employee headcount, signaling a slowdown in demand for talent. These developments directly impacted Info Edge’s recruitment business, as the company operates in four distinct areas of business: recruitment, real estate, matrimony, and education.
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Notably, Info Edge achieved an impressive 26.8% growth in its operating profit for the second quarter, with billings also showing an uptick of 4.8%.
