InfoEdge, owner/operator of job sites, real estate sites, a wedding site and education site in India and the Middle East, reported excellent results for Q3 and the first nine months of its FY2017, which runs to March 31.
The only negative was a 1.2-percent drop in revenue earned by the real estate sites in Q3 of FY2017 from Q3 in FY2016, which company officials ascribed to demonetization (the withdrawal of high-denomination bank notes out of circulation in Q3 by the Indian government to fight the black economy).
InfoEdge is listed on the Bombay Stock Exchange. It reports results for each of three business units (or segments) separately. The units are:
+ Recruitment solutions (including jobs sites Naukri.com, NaukriGulf.com, FirstNaukri.com, Saas software helping employers manage their recruitment processes, and Quadrangle, an offline recruitment agent placing mid-level and senior managers)
+ Real estate (including 99Acres.com and AllCheckDeals.com)
+ Others (which includes the wedding site Jeevansathi, and education site Shiksha)
In the first nine months of FY2017 all three units turned in positive performances – the unit recruitment solutions grew its revenue and profit before tax, while the units real estate and others grew their respective revenues, while almost halving their respective losses before tax.
In the nine months to end-December, the unit recruitment solutions earned 74 percent of all revenue generated by InfoEdge, the unit real estate contributed 14.3 percent and the unit others 11.6 percent of the total.
Looking at InfoEdge as a whole, in the first nine months of FY2017 revenue grew 13.2 percent to 5.9 billion rupees ($87.3 million U.S.) from 5.2 billion rupees ($77 million U.S.) in the same period of FY2016, and profit before tax jumped a massive 50 percent to 2 billion rupees from 1.3 billion rupees. So, smiles all around.
Here are the numbers for each unit:
+ Recruitment solutions
In the first nine months of FY2017 revenue climbed 13.8 percent to 4.4 billion rupees ($65.1 million U.S.) from 3.9 billion rupees in the first nine months of FY2016. Profit before tax climbed 16.2 percent to 2.3 billion rupees from 1.9 billion rupees. These numbers were not broken down for the individual sites and businesses.
+ Real estate
In the first nine months of FY2017 revenue grew 5.5 percent to 847 million rupees from 803 million rupees in the same period of FY2016. The loss dropped 39 percent to -533 million rupees from -875 million rupees. We assume almost all the revenue was earned by 99Acres.com.
Revenue climbed 19.9 percent to 691 million rupees from 576 million rupees. The loss dropped 44 percent to 106 million rupees from 189 million rupees.
In a conference call with News Corp.-owned VCCircle, Hitesh Oberoi, managing director and chief executive of InfoEdge, said revenue growth at Naukri.com could slow down in Q4, due to a change in its sales incentive policy.
“ … If we got our calculations right, we’ll have revenue growth back on track by Q1 and Q2 next year,” he said.
Here is the PDF with earnings report as published by the Bombay Stock Exchange.