Info Edge (India) Limited is one of India's premier internet-based business. The Company is primarily in the business of operating multiple internet-based services through its various web portals and mobile applications. It currently operates in four service verticals such as, in recruitment solutions through its brand naukri.com; in real estate services through its brand 99acres.com; in matrimonial services through its brand jeevansaathi.com and in education services through its brand shiksha.com. Company’s strategic investment also includes brands such as iimjobs.com, Zwayam, Doselect, Ambitionbox, hirist.tech, Codingninjas and aisle. It has a network of 83 branch offices located in 67 cities throughout India. It has also made forays abroad into the Gulf market with the website www.naukrigulf.com and currently has offices Dubai, Bahrain, Riyadh, Qatar and Abu Dhabi.

Under recruitment business, company owns 75% + of the total traffic share, 104 million Resume Database, 84k Unique revenue generating clients, 527k Job listings, 19.5k Resumes added daily, 498k Resumes modified daily, 129k Job seekers availed premium services and 870k Avg. resume searches daily.

Under Realestate business company has 183k+ projects on its site and 828k+ listings. Its website has generated 35% + time share in overall traffic for property. Buyers & Tenants spend more time on 99acres with lower/similar bounce rate vs most competitors.

Its Matrimony business generated 90%+ User traffic & time spent on Android and iOS apps. Under its education business company has 65,000+ Colleges, 5,24,000 course listings, 950+ entrance exams, 1400+ unique clients, 950 mn+ page views, 450 Mn+ annual visits and 9Mn + annual registration.

In addition to promoting businesses internally, Info Edge also recognizes opportunities that a burgeoning internet sector provides. The company has invested in 21 active financial investments in the portfolio making its Total books value of Rs. 635.2cr. The investee companies are Zomato, PB Fintech, Printo Documents Services Pvt. Ltd., Nopaperforms Solutions Pvt. Ltd., Agstack Technologies Pvt. Ltd., Bizcrum Infotech Pvt. Ltd., Medcords Healthcare Solutions Pvt. Ltd., Shop Kirana E Trading Pvt. Ltd., Greytip Software Pvt. Ltd., LQ Global Services Pvt. Ltd., Metis Eduventures Pvt. Ltd., Terralytics Analysis Pvt. Ltd., Llama Logisol Pvt. Ltd., Juno Learning Pvt. Ltd., Crisp Analytics Pvt. Ltd., Unboxrobotics Labs Pvt. Ltd., BrainSight Technology Pvt. Ltd., String Bio Pvt. Ltd., Attentive AI Solutions Pvt. Ltd., Attentive OS Pvt. Ltd., Skylark Drones Pvt. Ltd., RAY IOT Solutions Inc., AarogyaAI Innovations Pvt. Ltd., Sploot Pvt. Ltd., Psila Tech Pte. Ltd., Vyuti Systems Pvt. Ltd. and Ubifly Technologies Pvt. Ltd. Company holds 12.43% shares in Zomato and 12.52% shares in PB Fintech.

InfoEdge also has AIFs with around 50:50 partnership with MacRitchie Investment Pte Limited (Indirectly wholly owned Subsidiary of Temasek Holdings Pvt Ltd. This AIFs includes Info Edge Venture fund. Which provides First Scheme – USD100 Mn with Primary Focus on Consumer Tech Companies and Follow on Scheme of USD 100 Mn with Focus on Winners of Fund 1, Info Edge Capital with Corpus USD of 167Mn and Primary Focus on Consumer Tech Companies and Capital 2B with Corpus of USD 83Mn and Primary Focus on Companies leveraging deep tech/ patents etc.

Fundamentals:

Financial Results:

Info Edge (India) Limited recorded 12.8% growth in its Revenue from Operations at Rs 671.5 crore on a standalone basis for the quarter ended December 31st, 2024, compared to Rs 595.4 crore in the corresponding quarter of the previous fiscal. Billings for the company on a standalone basis for the quarter grew by 15.8% year on year and stood at Rs 668.3 crore. The company improved its operating profit margins to 39.2% of revenue and registered a growth of 20.4% in its operating profit which stood at Rs 263.4 crore on a standalone basis in Q3FY25 as compared to Rs 218.7 crore in Q3FY24. The standalone business generated cash from operation (before taxes) of Rs 345.8 crore for the quarter. 

At the consolidated level, the net sales for the Company stood at Rs. 722cr in Q3FY25 versus Rs. 627cr for Q3FY24. The total comprehensive income was at Rs. 3,182cr in Q3FY25 compared to Rs. 2,624cr in Q3FY24. Profit before tax (without exceptional items) in Q3FY25 was Rs 417cr, compared to Rs 185cr in Q3FY24.

On business verticals front, Recruitment business reported 15% growth rate in Billings in Q3FY25 and 12.7% growth on 9M period basis. Company’s operating profit reached Rs. 298 Cr. with 14.8% growth and improvements in margin. Its revenue from operations reached Rs. 505 Cr. with 12.1% growth in Q3 of Fy25 and its cash from operations also reached Rs. 333 Cr. with 20.5% growth. IIMJobs. Naukri Gulf and Naukri Fast Forward, also witnessed healthy billings growth of 29%, 21% and 21% YoY respectively.

99acres.com’s Billings grew at 16% YoY in Q3FY25 and its Operating losses reduced by 67% YoY. Company’s revenue from operations grew by 17.4% Cash from operations also grew by 63.4% in Q3Fy25. Live New project listings grew 9% YoY in Q3, and live resale plus rental listings from brokers grew 20% YoY in Q3.

Jeevansathi.Com’s Billings momentum continued with 36% YoY growth and operating losses also came down by 51%. Its Revenue from operations increased by 23.6% and Cash from operations turned positive in Q3Fy25. Key metrics like acceptances and two-way chats on the platform continue to remain healthy and Billings growth and sustained cost control led to reduced operating losses.

Shiksha’s Billings grew by 12% YoY in Q3FY25 and the business generated cash from operations of Rs. 15cr. Company reported operating loss of 1Cr. which was at break even point in same quarter in previous year. Its Revenue from operations grew by 3.3% in Q3Fy25. Domestic private universities and colleges continue to expand the course offerings beyond engineering with more choices available to students and The emergence of new private universities in India presents an opportunity for Shiksha to expand its footprint.

Info Edge (India) Ltd. continues to demonstrate strong fundamentals, underpinned by its dominant market position in the online recruitment space through Naukri.com, which contributes the majority of its revenues and profits. Despite temporary challenges in the hiring environment—particularly in the IT and startup sectors—the company has shown resilience by focusing on operational efficiencies and leveraging data-driven innovation to enhance user experience.

Its real estate (99acres) and matrimonial (Jeevansathi) verticals, while still in the investment phase, are showing gradual improvements in user engagement and monetization metrics. Moreover, Info Edge's portfolio of strategic investments in promising startups like Zomato, Policybazaar, and Ustraa continues to provide substantial long-term optionality and valuation upside, despite near-term volatility in the tech ecosystem.

With zero debt, healthy cash reserves, and a proven track record of prudent capital allocation, Info Edge remains well-equipped to navigate macroeconomic uncertainties and capitalize on India’s accelerating digital adoption. While valuations remain elevated, long-term investors may find merit in accumulating the stock on dips, with a focus on sustained digital growth, recovery in hiring demand, and value unlocking from its investee companies.

HET ZAVERI

info@smartinvestment.in

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