Investments In AI, Revenue Growth May Stem Fall In Margin, Says Info Edge
Naukri.com growth could sustain if IT companies continue hiring and the economy grows at 7 to 7.5%, says Info Edge CEO.
Info Edge (India) Ltd., the parent of jobs portal Naukri.com and property search website 99acres.com, expects aggressive investments in machine learning and artificial intelligence to enhance user experience and a strong revenue growth to stem the temporary contraction in margins.
“We are investing aggressively in product development and artificial intelligence, which is required to build a strong business in the long run,” Managing Director and Chief Executive Officer Hitesh Oberoi said in an interaction with BloombergQuint. “Margin may not be impacted to an extent if we continue to grow strongly on the top line.”
Naukri.com, the country’s largest job portal, contributes over 70 percent to its revenue. “If information technology companies continue hiring and the economy grows at 7 to 7.5 percent, we expect the Naukri segment to chug along at growth current rates,” said Oberoi.
Key Earnings Highlights
- Revenue up 17.7 percent on a yearly basis at Rs 265 crore in the second quarter ended September.
- Profit down 0.6 percent at Rs 78 crore.
- Ebitda down 7 percent at Rs 82.5 crore.
- Ebitda margin contracts 790 basis points to 31.1 percent.
Watch the full interaction here: