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- Shares of Info Edge India surged by 8% in early trading on the Bombay Stock Exchange following its Q4 earnings release.
- The company reported a significant turnaround with a net profit of ₹88 crore, compared to a loss in the previous year.
- “The robust performance across non-recruitment verticals has significantly contributed to our growth trajectory,” remarked a company spokesperson.
Info Edge India’s stock rallies post impressive Q4 earnings, signaling strong growth in non-recruitment sectors.
Impressive Q4 Performance Spurs Info Edge’s Stock
Info Edge India, the parent company of Naukri.com, Jeevansathi.com, and Shiksha.com, has shown a notable recovery in its financial performance in the fourth quarter. The company’s consolidated net profit stood at ₹88 crore, a stark contrast to the loss of ₹503.2 crore reported in the same quarter last year. This recovery is primarily driven by an 8.7% year-on-year increase in consolidated revenue, amounting to ₹657.4 crore.
Stock Market Reaction and Future Outlook
The positive earnings report propelled an 8% increase in the company’s share price in early trading, although it settled at a 6.90% gain by mid-morning. Market analysts attribute this surge to the company’s strong performance in its non-recruitment business segments, which have shown impressive revenue growth rates: 22.5% for 99acres.com, 29.2% for Jeevansathi.com, and 22.2% for Shiksha.com. The recruitment sector, despite being the core business, grew by 3.4% year-on-year.
Analysts’ Optimism Post-Earnings
Following the earnings announcement, several brokerage firms have revised their target prices for Info Edge’s stock upwards, reflecting a renewed confidence in the company’s growth prospects. Nuvama Wealth Management, for instance, has raised its target price from ₹6,500 to ₹7,050, indicating a potential upside of 20%. This adjustment is based on the company’s consistent performance and strategic investments in its key business segments.
Strategic Investments and Market Expansion
The company’s strategic focus on enhancing its product offerings and investing in technology has been pivotal. Notably, the recruitment margin saw a slight decline due to these investments, but this was offset by the reduced cash burn in the 99acres segment and improved margins in the Jeevansathi and Shiksha segments. The management’s decision to slash marketing expenses for Jeevansathi by 50% year-over-year has poised the segment for a potential breakeven in the near future.
Conclusion
Info Edge’s Q4 results have not only reflected a strong financial recovery but also highlighted the effectiveness of its diversified business model. The company’s ability to drive growth in both its core and non-core business segments suggests a promising outlook, making it a potentially attractive stock for investors. As the market continues to evolve, Info Edge appears well-positioned to capitalize on new opportunities, supported by its robust performance and strategic market positioning.
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