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