Info Edge (India) Limited — Investor Meet, 17-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Info Edge reported solid Q2 FY25 results with standalone revenue of ₹656 crore, a YOY increase of 11%. Standalone billings rose 14% to ₹650 crore. Operating profit improved to ₹251 crore, reflecting a 15% growth and an operating margin increase to 38%. However, net profit after taxes declined to ₹86 crore, impacted by a hefty deferred tax charge of ₹260 crore due to changes in capital gains tax rates, which did not reflect the actual business performance. On a positive note, without this charge, net profits surged by 66% YOY to ₹346 crore. For H1 FY25, standalone revenue reached ₹1,295 crore, marking a 10% increase compared to the previous year.

**Future Outlook and Growth Drivers:** Management expressed optimism about sustained growth, particularly in the recruitment sector, where they observed increased demand and higher engagement metrics. They identified robust contributions from niche businesses such as IIMJobs and Naukri Gulf, suggesting a strategic push into tier-2 and tier-3 cities for market expansion.

**Order Book and Operational Updates:** The recruitment business showed encouraging trends, with billings growth of 14%. The real estate segment saw a 16% increase in billings to ₹107 crore, driven by a rise in both customer numbers and spending per client.

**Analyst Q&A Insights:** Analysts raised questions about revenue projections and profitability trends, particularly in recruitment. Management noted expectations of elevated margins due to improved topline growth. Concerns about competition were acknowledged, particularly in the real estate segment, where intense competition remains a challenge.

**Strategic Focus Areas:** Info Edge aims to leverage AI technologies across its platforms to enhance user experience and operational efficiency. The recent deployment of AI has reportedly improved productivity and engagement metrics significantly.

**Investor Insight:** Overall, Info Edge's financial health appears robust with effective growth strategies and solid operational efficiency. Despite a temporary setback in net profits due to tax-related accounting changes, the underlying business growth suggests a favorable outlook. Given the upward trajectory in revenue and strategic focus on AI and market expansion, a ‘buy’ position seems appropriate for potential investors.