Info Edge sees Q2 net profit dive 64% to Rs 85 crore

Info Edge, the parent company of jobs listing portal Naukri, on Friday posted a net profit of Rs 85 crore for the quarter ending September 30, down 64% from Rs 240 crore a year earlier.

Operating revenue for the second quarter rose 12% to Rs 701 crore.

Managing director and chief executive Hitesh Oberoi said the company took an additional deferred tax charge of Rs 260 crore in the quarter, after a change in the Finance Act effectively increased the long-term capital gains tax rate to 14.3% from 11.4%.

The company also recorded Rs 363 crore in extra deferred tax charges from previous years under other comprehensive income.

Expenses rose 8% to Rs 492 crore, with employee benefits (Rs 306 crore) and advertising and promotion (Rs 91 crore) accounting for much of that.

Revenue from the recruitment solutions business, which includes Naukri.com, grew 9.5% to Rs 515 crore, while real estate listing portal 99acres posted a 17% increase at Rs 102 crore. At its other businesses, including Jeevansaathi.com and Shiksha.com, revenue increased nearly 20% to Rs 84 crore.

According to Oberoi, after several quarters of soft demand, the recruitment business is performing well with growth across all segments. Its non-recruitment businesses are also growing and are close to becoming self-sustaining, he said.

"We've had a tough five or six quarters, and we've grown in double digits, possibly after five quarters of low single-digit growth. October was not bad … so we are hoping that this momentum will continue, at least for some more time," he said.

“To diversify and grow our overall client base, we've been expanding in the GCC and non-IT sectors by strengthening our go to market offerings and acquiring new clients, particularly by increasing our reach in tier-II and tier-III cities,” he added.

The company plans to make significant investments in artificial intelligence and aims to create new revenue streams through it.

“We want to double down on our AI investments, and I think we will realise value from these investments very quickly,” Oberoi said.

For the fiscal year ended March 31, Info Edge had posted a consolidated net profit of Rs 594 crore, compared with a loss of 70 crore in the previous fiscal year, with operating revenue increasing to Rs 2,536 crore from Rs 2,345 crore.

Shares of the company closed 3.07% down at Rs 7,661.70 on the BSE Friday.