Info Edge's quarter numbers dissapoint the street

Info Edge an online classifieds company announced its Q3FY16 on Thursday. The earnings for the quarter are below the expectations as it reported an exceptional loss of Rs 11 crores this quarter. It also made provision for diminution in value of Canvera Digital Technologies; and transferred its investment in eTechaces Marketing & Consulting to its subsidiary Makesense Technologies.

On financial front the net revenue from operations of Info Edge reached  Rs 173.38 crores in Q3FY16 compared to Rs 174.11 crores in Q2FY16, a decrease of 0.42 per cent quarter on quarter (QoQ). The EBITDA stood at Rs 38.48 crores this quarter compared to Rs 33.35 crores in Q2FY16, an increase of 15.38 per cent QoQ. The EBITDA margin stood at 22.19 per cent this quarter compared to the margin of 19.15 per cent in Q2FY16. The substantial increase in EBITDA is on account of decrease in Selling and Administrative (S&A) expenses of company. The S&A expenses decreased by just 27.66 per cent QoQ to Rs 27 crores from Rs 37 crores in Q2FY16. The net profit stands at Rs 22 crores in Q3FY16 compared to Rs 34 crores in Q2FY16, a decrease of 35.92 per cent QoQ. The decrease in net profit is because of exceptional items loss of Rs 11 crores for the company this quarter. 

On a yearly basis the net revenue from operation increased by 18.96 per cent from Rs 145.75 crores in Q3FY15. The EBITDA increased by 5.89 per cent YoY. The EBITDA margin stands at 22.19 per cent compared to 24.93 per cent in Q3FY15. The net profit decreased by 43.76 per cent YoY. 

The nine month ending net revenue from operations increased by 18.48 per cent and reached Rs 519 crores compared to Rs 438 crores for the same period last year. The net profit for the same nine month period stood at Rs 121 crores compared to Rs 120 crores, an increase of 0.41 per cent from the same period last year.

This quarter it made provision for diminution in value of investments amounting to Rs 42.7 crore related to Canvera Digital Technologies; and additional provision for bonus amounting to Rs 2.94 crore for previous financial year. It also transferred its investment in eTechaces Marketing & Consulting to its subsidiary Makesense Technologies for Rs 51.3 crore, which resulted in profit of Rs 34.2 crore.

After the result the scrip of company fell to Rs 758.2, a decrease of 5.39 per cent due to disappointment in result; and later the scrip recovered and is trading at Rs 800, a decrease of 0.17 per cent from previous close.