InfoEdge India, owner of the Online Recruiting Business Naukri.Com reported a tepid growth of mere 8% YoY, reflecting poor demand conditions. Collections over half-year ended Jun-13 were up 9% YoY. Management remains cautious on the revenue growth outlook given no signs of a pick-up in the Indian economy, and therefore its core recruitment business. It reiterated its strategy of focusing on market share at the expense of near-term margins.
Overall, Standalone revenue grew 14% YoY and normalised profits were flat YoY. Collections growth for the six-month period ended Jun-13 for the Naukri.Com, and 99acres business was up 9% YoY and 50% YoY, respectively. In Jeevansathi (Matrimonial / Dating classifieds), revenue growth slowed to 17% YoY vs. 27% YoY in the Mar-13 quarter because the company has now started offering freebies to users to boost user engagement.
The average number of resumes modified daily increased sharply to 136,000, up 21% QoQ and 18% YoY. Management attributed this to increased user engagement on their website.
Investee companies in aggregate (excluding allcheckdeals) delivered a revenue of Rs650 mn, up 65% YoY and an EBITDA loss of Rs160 mn, down 10% YoY. Management commented that while forecasts for these businesses are difficult, if they remain on track to achieve revenue targets, the overall cash burn should reduce. The company has written off its entire investment in the start-up, Floost.com, a social networking website focused on discovering and sharing content. This amounts to Rs26 mn.
The management’s strategy is focusing on market share at the expense of near-term margins maybe quite risky as none of the companies neither have any innovation nor disruptive technologies.