InfoEdge reveals Q2FY14 performance, optimistic about growth of 99acres and Jeevansathi

infoedageInfo Edge recently disclosed its Q2FY14 financial performance over a Concall, thereby reporting a net sales in current quarter of Rs. 123 crores versus Rs. 106 crores in the same quarter last year, an increase of about 15%. PAT was at Rs. 33 crores which was flat year-on-year. Also, Deferred sales revenue has decreased to Rs. 121 crores versus Rs. 131 crores as of September 30th versus June 30th.

Wherein, Naukri continued with its strong growth in the market, its real estate (99acres) and matrimony (Jeevansathi) portals, showed positive growth signs with significant losses in this quarter. Here is a brief overview of the each business Q2FY14 performance:

Naukri: As per Hitesh Oberoi, MD & CEO, INFO EDGE (INDIA) LIMITED, despite of slowdown in the market Naukri has done reasonably well partly helped by the IT sector being stable. The company is also planning to roll out some new product features in the next quarter including a Naukri android App most probably coming this month.

Zomato: Zomato plans to add more countries. During the Concall, the company officials also cleared that it will be completing next round of funding by the end of this year. However, Info Edge will be participating this time along with another investor.

Stating the reason for such attempt, Info Edge Vice-Chairman Sanjeev Bikhchandani said, “Getting a new investor in depends on the size of the raise, and the size of our balance sheet. If the raise is going to be large, we would like to get someone alongside us. We will be probably diluted from our stake, but this is still under negotiation, but we are likely to stay majority.”

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99acres: In Q2FY14,  99acres made a loss of Rs. 1 crore on account of brand building and growing investment in team and products development. However, on a positive note, top line in 99acres grew by 57% year-on-year to 18.5 crores. Also, the paid listings for the real estate search portal were at 5.6 lakhs versus at 4 lakhs last year.

As mentioned by Hitesh in the call, the Info Edge will continue with its investments in 99acres with focus on product development, technology, design brand building increasing the size of the sales team, opening offices.

When asked by an analyst , the reason for such great degree of optimism, he said, “More than Rs. 2,000 crores a year spent on real estate advertising offline and this has to migrate online over a period of time. Our estimate is less than 10% of this money is spent online today. So this will only grow because online is a more efficient way of attracting customers in generating leads for the properties to rent or sell. So this is the reason why we continue grow in a market which may otherwise be sort of stagnant or contracting currently”.

Jeevansathi and Shiksha: In Jeevansathi net sales in Q2 grew 16% Y-o-Y and posted an EBITDA loss of around Rs. 80 lakhs. Shiksha, on the other hand reported a 60% growth in net sales grew over last year.

To read the complete concall transcript, click here

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