Info Edge (India) Q1FY19 Concall Summary


Q1 FY19 Results - Stand-alone financials

Infoedge Q1FY19 financials.png
  • Billings in Q1 were INR 283.3 crores, up 17% year-on-year.
  • Revenue in Q1 was INR 259.5 crores, up 17% year-on-year.
  • Operating expenses excluding depreciation for the quarter were INR 175.3 crores, up 15% year-on-year primarily due to an increase in marketing, hiring in certain products and annual increments
  • Operating EBITDA stood at INR 84.3 crores versus INR 70.3 crores last year, having increased 20% year-on-year.
  • Operating EBITDA margin for the quarter stood at 32.5% versus 31.6% in Q1 of last year.
  • EBITDA adjusted for ESOP noncash charges stood at INR 88.1 crores versus INR 79 crores last year
  • Adjusted EBITDA margin for the quarter stood at 34%.
  • Cash EBITDA for the quarter stood at INR 112 crores, up 14.2% year-on-year.
  • Deferred sales revenue has increased to INR 420 crores as of June 30, 2018, versus INR 354 crores as of June 30, 2017, an increase of 19% year-on-year.
  • The cash balance for the company as a whole stands at INR 1,980 crores as of June 30, 2018
  • The recruitment business and the real estate business continued to drive the growth for the quarter.
  • Expenses
  • Spent more on marketing as compared to Q1 of last year,
  • Hired additional resources to invest in changing technologies.

Results by segment

Recruitment segment.

  • Recruitment segment billings in Q1 were INR 210 crores, up 15.4% year-on-year.
  • Revenues were INR 184.1 crores, an increase of 15.2% year-on-year.
  • Operating EBITDA margins in recruitment segment were at 56.8% versus 55% in Q1 FY '18.
  • Employee costs were higher because of increments and some net hiring in the division.
  • EBITDA margins adjusted for ESOP noncash charges stood at 57.8%.
  • Cash EBITDA for recruitment during the quarter stood at INR 132 crores, up 15.6% year-on-year.


  • Added an average of 18,000 fresh CVs every day in Q1.
  • Naukri database grew to about 59 million CVs.
  • Average CV modifications were [350,000] per day.
  • Traffic share in the job portal space continues to be in the mid-70s excluding Indeed and around 60% including Indeed.
  • Investment in recruitment tools and systems business continues aggressively.

Industry-wise trend

  • There was an uptick in new customer acquisition last quarter, and there was also some pickup in IT sector hiring, leading to higher billing from IT companies this quarter.
  • Non-IT companies -- sectors like auto, industrial products, construction, banking, finance, insurance, manufacturing, BPO and some other smaller sectors also did well for the company in terms of growth as also indicated by the Naukri JobSpeak index.
  • Revenue from consultants did not grow as expected.
    • 27%-28% of our revenue comes from IT companies
    • Another 25%-26% of our revenue comes from recruitment firms
    • And then all the rest comes from another 40-50 industries.

Key Investment areas in Naukri

  • Whole mobile piece and for the personalized user experience on app.
  • Enterprise applicant tracking and regular management space.
  • Data science group and a machine learning group to leverage these technologies to improve our machine capabilities.
  • Incremental improvements on product.

Real estate business - 99acres

  • In the real estate business, 99acres, billings in Q1 grew 39% year-on-year to INR 41 crores. Revenue grew 34% to INR 42 crores.
  • Continued investment in marketing during the quarter, resulting in an EBITDA loss of around INR 11.5 crores versus a loss of INR 9.6 crores in Q1 of last yeare
  • Adjusted EBITDA after adjusting for ESOP expenses stood at a loss of INR 10.7 crores versus a loss of INR 7.1 crores in Q1 of last year.
  • Cash EBITDA loss in 99acres during the quarter stood at INR 11.7 crores versus a loss of INR 8.7 crores in Q1 of last year
  • Our traffic share amongst real estate portals remained around 60% during the quarter based on time spent as per SimilarWeb.
  • Broker billings form 50% of the overall billings, while builder billings stood at about 45% of the billings for the trailing 12 months ending June 30, 2018.
  • Homebuyers continue to prefer retail and rental properties over new launches which was evident from higher Q1 billing growth on account of agents.
  • Owner billings stood at about 5% of total billings for the last 12 months.
  • Key investment areas
    • Continued investment in marketing for 99acres to consolidate position in real estate classified business
    • More investment in products and technology.

Matrimony business - Jeevansathi

  • Jeevansathi billings grew 1% year-on-year in Q1 to INR 18.2 crores, owing to aggressive pricing and activity by competition during the quarter.
  • Revenue grew 4% year-on-year to INR 18.6 crores.
  • Higher marketing expenses in the quarter aided higher traction as number of paid transactions improved year-on-year.
  • Operating EBITDA loss in Jeevansathi increased to INR 5.6 crores in Q1 FY '19 from INR 4.1 crores in Q1 FY '18.
  • Adjusted EBITDA loss stood at INR 5.5 crores in Q1 versus a loss of INR 3.5 crores in Q1 FY '18.
  • Cash EBITDA for Jeevansathi during the quarter stood at negative INR 5.4 crores.
  • More than 90% of our users access Jeevansathi from their mobile, and the Jeevansathi mobile app continues to be the best in the category.

Shiksha business

  • In Q1, Shiksha billings grew by 22% year-on-year to INR 14.1 crores.
  • Revenue grew 11% year-on-year and reached INR 15.3 crores.
  • EBITDA profit of INR 3.1 crores in Q1 versus a profit of INR 2 crores in Q1 of last year.
  • Adjusted EBITDA profit for the quarter stood at INR 3.3 crores versus INR 2.9 crores last year.
  • Cash EBITDA was INR 2.1 crores versus INR 0.6 crores in Q1 of last year. 

Strategic investments- Policy Bazaar

  • The Policy Bazaar deal was announced in the quarter and will be concluded after statutory approval.
  • 28-30% stake in Policy Bazaar after the investments.

Information on Zomato

  • Zomato is increasingly delivering more and more of its orders through its own delivery system, which is Runnr and others, right, and less and less increasingly through third parties.
  • Zomato has 12 million orders a month run rate. Zomato expects to catch up and overtake the narrowing difference from Swiggy in a few months.
  • Expect no seasonality to ordering.
  • Zomato Gold has done very well and continues to do well.
  • Recently launched Piggybank - a loyalty program, which has within 48 hours of launch locked up a large number of subscriptions and sign-ups.


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