Info Edge (India): A Tepid Q2 Performance

A service provider for online classifieds in the fields of recruitment, matrimonials, real estate and education, Info Edge has declared its second quarter results. The numbers were flat, with the topline growth coming in at just 2.32% on a sequential basis. After the result announcement, the stock was trading at Rs 347.40, marginally higher by 0.05%.

During Q2FY14, the company's net sales stood at Rs 123.57 crore against Rs 20.76 crore in Q1 of the fiscal. However, its operating income increased by 19.87% to Rs 44.18 crore. This was aided by a decrease in its total expenses, which came in lower by 5.39%. The company's advertising and promotional expenses reduced drastically by 29.36% in the second quarter against that in Q1FY14.

However, Info Edge's other income stood at Rs 91.65 crore for the elapsed quarter, down 31.68% from Rs 134.14 crore in Q1FY14. As a result of this, the company's profit before tax grew by only 6.65% on a sequential basis. Further, its net profit during the quarter increased by 13.12% on a sequential quarter basis. Q1 had seen its net profit coming in lower on account of exceptional expenses of Rs 2.6 crore in regard of provisions for diminution in the carrying value of its investment in Nogle Technologies.

Overall, the company registered a disappointing performance in terms of its topline. Further, it managed to grow its bottomline on a sequential basis, though this dropped from that in the same period last year.