Infoedge, a major investor in companies such as Zomato and Meritnation has recently disclosed its Q1 earnings result for FY14 reporting net sales of INR 121 crores, a 14 % increase over Q1 previous year. Deferred sales revenue has increased to Rs. 131 crores vs Rs. 121 crores as of March 2013 and is at an all-time high. The increase in revenue is also added by the gain in paid listings at 4.3 lakhs in comparison to 3.4 lakhs last year.
As per Hitesh Oberoi, CEO, Infoedge, even with tough market conditions, the company is able to gain from the strong position of its Job portal Naukri.com maintaining EBITDA margins at 55% similar to that in Q1 of last year and from other forms of recruiting and from competition.
However, the company also suffered from losses in this quarter on account of its online portals 99acres and Jeevansathi.com, making a total loss of INR 6.4 crore at EBITDA levels on both. The loss is said to be due to growing investments in sales, new offices and advertising.
For Q1 FY14, Infoedge reported Profit after tax of INR 32 crores excluding the write off of INR 2.6 crore, on behalf of one of its investee companies, Nogle Technologies, running an information sharing platform, Floost.com. To be pointed out, previously in the last quarter of FY13, the company also write-off its investment in two companies, Studyplaces and 99 labels.
With investment in around 7 early stage startups, the two companies where Infoedge have majority ownership, Zomato and Meritnation, reported a combined sales of Rs. 8 crores with a growth of more than 150% year-on-year. However, they made a loss of INR 6.4 crores which is 25% lower than last year in Q1.
Moving aggressively to expand its global footprint with total $16.5 million funding raised in 4 rounds, Zomato, the online restaurant guide, has recently announced its Indian operations to reach break even point. Also, it has launched a new version of the website by adding up new features and redesigning the interface.
Considering the investment opportunities available in the Indian internet market, the company is looking forward to invest in the business, especially in areas like product development and platform development in the next 6-12 months. Also, Infoedge is still positive on the growth of 99acres and Jeevansaathi.com and is looking forward to invest in marketing and brand building further in this business.Category Internet News