Recruitment revenue at Rs903mn grew 8.3%yoy and 0.2%qoq and margins remained steady at ~50%. The company attributes this to emerging signs of stability in IT recruitment as well as market share gains on the back of strong execution. It continues to invest in product development to enhance user experience and engagement.
99Acres Outperform Amidst Real Estate Real SlowDown
Revenues grew ~57%yoy to Rs185 Mn. Over the quarter, both total and paid listings increased by 31%. The company attributes this to beefing up of sales force, opening new offices in new as well as in cities with existing presence, investment in product development and strong execution.
While the overall real estate market remains sluggish, share of online spend is rising (currently <10%), which is also aiding the growth of 99acres. The management noted that real estate is a Rs20bn+ category in print. Thus, there is significant room for the online segment to grow. Currently, 99acres has offices in about 15 cities. Over, the next 1-2 years, management expects to have presence in 35-40cities Jeevansathi Revenues grew by 16%yoy to ~Rs92m, while the loss at EBITDA level was Rs8m. Management aims to disrupt the online matrimonial market and is evaluating changes in the existing business model.
Mobile Traffic
The company’s portals currently get 15-30% of their traffic from mobile devices. With this share expected to increase, the company is the process of launching apps – an Android app for Naukri would be launched this month, while 99Acres app is currently under development.
The company has declared an interim dividend of Rs1/share – for the first time in its listed history. We view management’s willingness to return more cash to shareholders as a positive.