Info Edge posts disappointing March quarter results

Info Edge posts disappointing March quarter results

Shares of Info Edge (India) were down 2% at Rs 4,865 on the BSE in intra-day trade on Tuesday, in an otherwise strong market, after the company reported a 44.9% year-on-year (YoY) decline in operating Ebitda (earnings before interest, taxes, depreciation, and amortisation) at Rs 53.2 crore during the March 2021 quarter (Q4FY21). Net sales were down 10.2% YoY at Rs 290 crore.

However, the company has seen improving billing growth both YoY and quarter on quarter (QoQ). Billing increased 25.1% YoY and 39.8% QoQ to Rs 415.3 crore during Q4FY21, mainly led by a 26% YoY growth in recruitment and 41.5% YoY growth in 99 acres billing. As compared to Q4FY19 (a pre-pandemic quarter), the company’s overall billing was up 15%.

It is believed that the digital onboarding of talent and strong traction in IT and ITeS segment bodes well for revenue growth. Further, the company is witnessing a healthy billing trend QoQ, YoY.
Prudent capital allocation, quasi-play on the Indian startup ecosystem (Zomato, PolicyBazaar, like Shoekonect, Ustra, Gramophone) and leadership in recruitment with an Ebitda margin of above 50%, should keep investors fairly optimistic on the stock from a long term perspective.

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