Info Edge India Q1 Results Review - Broadly Inline; Green Shoots In IT Related Hiring: Centrum

Centrum Broking Report

Info Edge India Ltd. reported broadly inline performance for the quarter. It reported revenue of Rs 6,389 million( up 5.0% QoQ, up 9.3% YoY). The sequential growth was led by 4.3% QoQ growth in revenue of Recruitment business; 6.2% QoQ growth in revenue of 99acres segment and 9.2% QoQ growth in revenue of Jeevansathi segment.

The number of resumes have reached 100 million versus 98 million in Q4 FY24. Ebitda margin declined by 154 bps QoQ to 39.0% on higher marketing cost ( up 23.7% QoQ). Reported billings of Rs 5.8 billion( up 10.7% YoY), led by 8.4% YoY growth in Recruitment billings and 10.4% YoY increase in billings for 99acres and 28.6% YoY growth in billings of ( Jeevansathi + Siksha).

Reported PAT of Rs 2,323 million versus Rs 2,109 million in Q4 FY24. It is seeing some green shoots with regard to IT related job postings on its portal. The losses in Jeevansathi and 99acres continue to come down even as billings growth momentum sustained.

The new strategy for Jeevansathi is yielding results as traffic and billings continue to grow as it aims to breakeven in FY25.

We expect revenue/Ebitda/PAT to grow at 16.2%/16.7%/16.7% over FY24-FY26E. We have revised our FY25E/FY26E EPS by (0.3%)%/1.5%.

We maintain Add Rating on the stock with revised target price of Rs 7,797/share (versus Rs 6,552 earlier) arrived through SOTP method on FY26E Estimates.

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