Info Edge Q4 Review - Surprisingly Strong Outlook Notwithstanding Second Wave: ICICI Securities

Employees work at a office in Bengaluru, India (Photographer: Karen Dias/Bloomberg.

Info Edge Q4 Review - Surprisingly Strong Outlook Notwithstanding Second Wave: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

To our and even management’s surprise, Info Edge India Ltd.'s billing increased 40% QoQ despite the panic around the second Covid-19 wave beginning March 2021.

This was 25% above our estimates and largely driven by the robust volume increase at Naukri.

In this backdrop, the company made higher variable pay-outs (~130-140%) to sales team.

In conjunction with partial salary hike and some one-off provisions, reported margins missed our estimates.

Key takeaway is the management commentary on recruitment and matrimony segments not seeing any impact even in April and May despite stringent lockdowns.

While 99 Acres was impacted, we understand traffic bounced back sharply in June.

Click on the attachment to read the full report:

ICICI Securities Info Edge Q4FY21 Results Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.