Info Edge India reports Q2 revenue rise, profit surge despite IT hiring slowdown

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Info Edge India reports Q2 revenue rise, profit surge despite IT hiring slowdown
Credit: © Reuters.

Info Edge (NS: INED ) India Ltd. has reported a 4% rise in Q2 revenue to Rs 626 crore ($83.4 million) for the September quarter, even as its recruitment platform Naukri experienced slowed growth due to an IT hiring slowdown. The company saw a significant surge in profit by 76% to Rs 262 crore ($34.9 million), attributed to reduced operational costs.

The company's standalone revenue increased by 11.5% to Rs 593 crore ($79 million), up from Rs. 531.8 crore ($70.8 million) in the same quarter of the prior fiscal year. Info Edge's real estate segment, 99acres.com, witnessed a revenue surge of 28% to Rs 87 crore ($11.6 million). Despite the slowdown in IT hiring, the recruitment business still managed to post a growth of 9.1%.

The company's quarterly billings amounted to Rs 569 crore ($75.8 million), marking a rise of 4.8%. Operating profit was reported at Rs 218.9 crore ($29.2 million), up by 26.8% from last year's Rs 172.5 crore ($23 million). Info Edge generated Rs 250 crore ($33.3 million) cash from operations, representing a year-on-year growth of 14%.

CEO Hitesh Oberoi credited the reduction in burn across verticals to effective execution in the non-IT hiring market and Jeevansathi business, indicating a strategic shift in focus that has resulted in positive financial outcomes for the company despite industry-wide challenges in the IT sector.

InvestingPro Insights

Based on real-time data from InvestingPro, Info Edge India Ltd. boasts a high P/E ratio of 83.7. This is an important metric for investors as it suggests that the market has high expectations for the company's future earnings growth. Additionally, Info Edge's EPS stands at 2.36, indicating that the company is profitable on a per-share basis. With a substantial market cap of $8.7 billion, Info Edge continues to be a significant player in its sector.

As per InvestingPro Tips, potential investors should take into account the company's high P/E ratio. This could be indicative of high future earnings growth expectations. Furthermore, the positive EPS suggests profitability, which is a positive sign for those considering an investment. For more insights like these, consider exploring the InvestingPro platform which offers numerous additional tips for informed investing decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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