InfoEdge - Q4FY21 First Cut - ICICI Direct

(CMP: Rs. 4936; MCap: Rs. 63,631 crore)

InfoEdge's Q4FY21 numbers were below our estimates. However, the company has seen improving billing growth both on YoY and QoQ basis. The company's Billing increased 25.1% YoY and 39.8% QoQ to Rs. 415.3 crore mainly led by 26% YoY growth in recruitment and 41.5% YoY growth in 99 acres. As compared to Q4FY19 quarter (a pre pandemic quarter) the company's overall billing was higher by 15.0%.

The dip in Recruitment business (down 13.9% YoY) and 99 Acres (down 11.1% YoY) led to 10.2% YoY decline in revenues to Rs. 290.0 crore (below our estimate of Rs. 299.2 crore). However, overall revenues on QoQ basis increased 6.5% QoQ. Losses in 99 Acres & other vertical and lower profitability in recruitment business led to EBITDA margins declining from 29.9% in Q4FY20 to 18.3% in Q4FY21.

Q4FY21 Earnings Summary

- Revenue declined 10.2% YoY (up 6.5% QoQ) to Rs. 290.0 crore (below our estimate of Rs. 299.2 crore). Recruitment solutions declined 13.9% YoY (up 4.8% QoQ) to Rs. 198.6 crore (vs. our estimate of Rs. 204.7 crore) and 99 acres declined 11.1% YoY (up 11.7% QoQ) to Rs. 50.1 crore (vs. our estimate of Rs. 53.5 crore). However, other verticals grew 15.0% YoY to Rs. 41.3 crore (vs. our estimate of Rs. 40.9 crore) which we believe was mainly led by Jeevansaathi

- EBITDA margins decreased from 29.9% in Q4FY20 to 18.3% (below our estimate of 29.6%) mainly led by higher employee and administrative expenses

- InfoEdge adjusted PAT decreased 11.3% YoY (flat QoQ) to Rs. 69.9 crore (below our estimate of Rs. 78.2 crore) mainly due to poor performance at operating level

The company has seen healthy improvement in revenues on QoQ basis. In addition, the company has seen healthy improvement in billings on QoQ and YoY basis. This we believe is mainly due to improvement in economy and traction in IT segment. Going forward, we believe the company's performance will improve in coming quarters led by improved hiring in IT sector. We would be keenly looking for the company's outlook on Zomato, acquisition due to fund raising, any new investments and revival path ahead in the conference call. We would be revisiting our estimates and target price post the conference call tomorrow.

Shares of INFO EDGE (INDIA) LTD. was last trading in BSE at Rs.4955.05 as compared to the previous close of Rs. 4996.5. The total number of shares traded during the day was 37882 in over 4607 trades.

The stock hit an intraday high of Rs. 5015.55 and intraday low of 4811. The net turnover during the day was Rs. 186451779.

Source : Equity Bulls

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