InfoEdge - Q4FY20 First Cut - ICICI Securities

(CMP: Rs. 2770; MCap: Rs. 33,944 crore)

InfoEdge's Q4FY20 numbers were below our estimates on all fronts.

Q4FY20 Earnings Summary

- Revenues grew 10.3% YoY to Rs. 322.8 crore (below our estimate of Rs. 324.1 crore). Recruitment solutions grew 11.2% YoY to Rs. 230.6 crore (vs. our estimate of 11% YoY growth and Rs. 230.2 crore), 99 acres grew 3.6% YoY to Rs. 56.4 crore (vs. our estimate of Rs. 58.8 crore) and other verticals grew 16.2% YoY to Rs. 35.9 crore (vs. our estimate of Rs. 35.2 crore)

- EBITDA margins declined ~315 bps QoQ to 29.9% (below our estimate of 30.8%) mainly due to decline in Recruitment margins (down 155 bps QoQ to 54.2%). The company continues to invest in advertising and marketing cost especially in Jeevansathi

- InfoEdge reported PAT of Rs. 41.6 crore. There was an exceptional item of Rs. 37.2 crore (owing to diminution in carrying value of investment in startup investment & Allcheckdeals India Private Limited). Adjusting for this, PAT came in at Rs. 78.8 crore (vs. our expectation of Rs. 83.9 crore). The company plans to raise funds of Rs. 1875 crore through Qualified Institutional Placement route

Key thing to watch out for in the conference call is the company's outlook in FY21E. We would be revisiting our estimates and target price post the conference call.

Shares of INFO EDGE (INDIA) LTD. was last trading in BSE at Rs.2721.6 as compared to the previous close of Rs. 2960.4. The total number of shares traded during the day was 22048 in over 3574 trades.

The stock hit an intraday high of Rs. 2945 and intraday low of 2665. The net turnover during the day was Rs. 62072571.

Source : Equity Bulls

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