Info Edge - In-line quarter... - ICICIdirect

Q3FY13 revenues, PAT were in-line with our estimate while EBITDA margins were below. Revenues came in at Rs.106.4 crore (flat QoQ) vs. our Rs.106.9 crore estimate while PAT came in at Rs.30.8 crore (Rs.30.7 crore estimate). At 33.5%, EBITDA margins were below our 35.2% estimate led by weakness in recruitment solutions (EBITDA declined 7% QoQ to Rs.38.8 crore vs. Rs.41.7 crore).

Noticeably, at 10.2% YoY, recruitment solutions revenue growth was the slowest since Q3FY10 while EBITDA margins (47%) were the lowest since Q4FY10.

Management commentary suggests a likely muted Q4 for the recruitment business, which could pressurise operating margins. Though InfoEdge managed to maintain its market share (~60-61%), persistent sluggishness in hiring activity led by weak macro continues to impact the earnings.

Source : Equity Bulls

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