MOSL: INFO EDGE INDIA (Neutral)-Traction in revenues-Ad spends spiking amid competition
Info Edge India: Traction in revenues; Ad spends spiking amid competition
(INFOE IN, Mkt Cap USD3.4b, CMP INR1966, TP INR1870, 5% Downside, Neutral)
- Acceleration pauses in 99acres/Naukri: For FY19, INFOE's revenue increased 20% YoY, mainly led by a rise in IT hiring and a lower base of 99acres.com. 4QFY19 standalone revenue was INR2.93b (+4.1% QoQ, +21.6% YoY), in line with our estimate. Revenue growth moderated in both Recruitment (+18.4% YoY v/s +20.5% in 3QFY19) and 99acres.com (+45.8% YoY v/s +47.9% in 3QFY19).
- EBITDA miss led by drag in Recruitment margin: EBITDA margin of 31.2% (+160bp QoQ) missed our estimate of 33.1%, despite cutting losses in 99acres.com and Jeevansathi.com. Recruitment margin slipped to 52.9% v/s 54% in the previous quarter, mainly on account of elevated product development cost. For FY19, margin shrank 140bp, led by a 320bp increase in advertisement expenses. Adj. PAT of INR838m (+12.6% QoQ) came in below our estimate by 13.5%, mainly on account of lower EBITDA margin and higher ETR. For FY19, PAT stood at INR 3.2b (+15%).
Info Edge India is an online classifieds company specializing in recruitment, matrimony, real estate, education and related services. Co.'s recruitment business is an online recruitment classifieds and offline executive search operated through several websites. The matrimony business comprises online matrimony classifieds and 14 offline Jeevansathi Match Points. Co.'s real estate business comprises online real estate classifieds, a real estate brokerage business, housed in a subsidiary named Allcheckdeals.com India Private Limited. The education comprises online education classifieds. As of Mar 31 2014, Co. had a network of 56 offices located in 42 cities throughout India
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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