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Internet services company Info Edge has reported a multifold growth in profits. The profit reported by the company last year was Rs 278.48 crores. The same grew to Rs 8,922.5 crores in 2022, registering a staggering YoY growth of 3,104%.
The parent of Naukri, Jeevansaathi, and Shiksha reported massive growth in profits due to an exceptional gain during the quarter. Last year the company had an exceptional loss of Rs 3.22 crores. However, this time the company had an exceptional gain of Rs 9,512 crores!!
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During the year, the company had reversed a provision for a diminution of investment of Rs 217.83 crores. Furthermore, the bulk of the exceptional gain was on account of Zomato's IPO. Info Edge was one of the earliest investors in Zomato and had held 18.6% in the company well before it went public. The company had a profit on the sale of shares of Rs 357.15 crores while Rs 8,941.2 crores were the company's unrealized market gain.
“Effective listing date, Zomato Ltd has ceased to be a joint venture and has been reclassified as a financial investment which will be fairly valued at each reporting date…Accordingly, unrealized mark to market gain of INR 89411.95 Mn till the date of listing of Zomato has been credited to P&L through exceptional item,” the company mentioned in its financials.
The company's revenues jumped 38.6% from Rs 1,128 crores to Rs 1,563 crores as Total income reached Rs 1,733 crores, jumping 39%. Compared to incomes, expenses saw marginal growth during the year as expenses for advertising and promotions surged the most, up 56% YoY.
Recruitment solutions i.e. Naukri.com was its best segment once again as revenues of the segment reported a growth of 44%, contributing Rs 1,154 crores or 73.8% of the company's revenues. Real estate i.e. 99acres followed suit as its revenues grew 25% during the year.
For the quarter ended in March 2022, the company reported a profit of Rs 719.6 crores as opposed to Rs 310.5 crores reported in the corresponding quarter last year. Total income grew 92.6% to Rs 699.87 crores as other income reported a massive growth of 261% to Rs 226.92 crores.
The stock of Info Edge had achieved its lifetime high of Rs 7,465.40 per share in October 2021 only to fall back below Rs 7,000 per share shortly after. The company announced a dividend in January 2022 after which the share contracted below Rs 5,000 and hasn't been able to climb back to it ever since.
The share closed at Rs 3,693.30 per share on Friday, marking a loss of 34.4% to investors since the beginning of 2022.
Article by Aman Agarwal.
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