Info Edge Stock Surges: Strong Q4 Performance Leads to Record Highs on Bombay Stock Exchange

Info Edge, a prominent player in India's online services sector, witnessed a remarkable surge in its stock value, reaching a 52-week high of INR 6,234.95 during intraday trading on the Bombay Stock Exchange (BSE) following a robust performance update for the fourth quarter.

The company's standalone billings exhibited positive growth, climbing by 5.48% year-on-year (YoY) to INR 2,495.9 Cr for the fiscal year ending March 2024. Notably, its recruitment solutions vertical, which includes platforms like Naukri and iimjobs, reported standalone billings of INR 1,883.2 Cr, marking a 1.81% YoY increase.

Moreover, Info Edge's real estate portal, 99acres, witnessed a substantial surge in standalone billings, recording a notable 23.5% growth to INR 385.1 Cr for FY24. The company's strong performance extended to the quarter ended March 31, 2024, with standalone billings reaching INR 826.9 Cr, out of which INR 625.4 Cr were attributed to its recruitment solutions segment.

Analysts at Nomura observed a robust recovery in Naukri billings, indicating a potential bottoming-out of IT hiring. They highlighted that the management of Info Edge is optimistic about the IT hiring slowdown, especially considering the near-peak utilization levels among major IT services companies. Naukri's data revealed that approximately 85% of companies are contemplating initiating campus hiring in FY25, accompanied by strong deal wins. Furthermore, the Naukri jobspeak index reported a significant rebound in February, registering a month-on-month growth of 13.2%.

Given the strong performance in the March quarter and signs of stabilization in IT hiring, Nomura projects Info Edge to achieve a year-on-year billings growth of 15% in FY25, compared to stagnation in FY24.

Info Edge, renowned for operating platforms such as Naukri.com, 99acres.com, Jeevansathi.com, and Shiksha.com, has witnessed a remarkable uptrend in its share prices, surging over 60% in the past year. Furthermore, the company's shares are currently trading approximately 20% higher year-to-date.

In a significant development, Info Edge recorded an exceptional 157% year-on-year surge in its consolidated net profit, reaching INR 119.4 Cr in the December quarter (Q3) of FY24. This notable increase can be primarily attributed to a substantial exceptional loss of INR 411.8 Cr in the corresponding period of the previous fiscal year.