Info Edge (India) Sees Share Surge Following Impressive Business Update
On April 8, 2025, shares of Info Edge (India), the parent organization behind the popular job portal Naukri, experienced a notable increase of 5.2% during afternoon trading, reaching ₹6,710 per share. This rise coincided with the company’s recent announcement regarding its business performance for the March quarter and the entire fiscal year 2025. Investors reacted positively to the solid financial results shared in the company’s regulatory filing.
Strong Quarterly Performance
For the quarter ending March 31, 2025, Info Edge reported robust standalone billings of ₹983.8 crore. This figure marks a significant rise from ₹826.9 crore recorded in the same quarter of the previous year. The full fiscal year saw total billings climb to ₹2,881.7 crore, up from ₹2,495.9 crore in FY24, showcasing the company’s strong growth trajectory.
- Quarterly standalone billings: ₹983.8 crore (up from ₹826.9 crore YoY)
- Annual billings: ₹2,881.7 crore (compared to ₹2,495.9 crore last year)
Segment Contributions and Investments
The Recruitment Solutions segment was a key driver of this growth, generating ₹740.3 crore in the last quarter, up from ₹625.4 crore a year earlier. For the entire fiscal year, this segment contributed ₹2,157.7 crore, compared to ₹1,883.2 crore in FY24.
The 99acres real estate division also showed positive momentum, with billings of ₹159.8 crore for the quarter, compared to ₹131.1 crore the previous year, and annual billings increasing to ₹450.7 crore from ₹385.1 crore.
In a strategic move, Info Edge’s subsidiary, Jeevansathi Internet Services, announced an investment of approximately ₹300 million into Aisle Network, a company specializing in dating platforms. This investment is intended to bolster Aisle’s working capital needs.
Market Insights and Challenges Ahead
Global brokerage firm Macquarie recently adjusted its target price for Info Edge stock to ₹5,200, which signals a potential 21% downside from the current trading price. The firm expressed concerns about the stock’s valuation, noting that it trades at 40 times the FY27 price-to-earnings ratio, indicating a disconnect between growth and valuation.
Despite the positive cash flows from Naukri supporting its other ventures, Info Edge’s overall return on equity remains at a modest 5%, as highlighted by the brokerage.
Recent Financial Highlights
In its Q3 FY25 results, Info Edge reported a net profit of ₹242.59 crore, a remarkable increase of 60.6% from ₹151.09 crore year-over-year. The company’s operational revenue rose by 15.2% YoY to ₹722.39 crore, compared to ₹627.12 crore in the same quarter last year.
Key financial metrics from Q3 FY25 include:
- Earnings per share (EPS): ₹20.06 (up 21.2% YoY)
- Cash generated from operations: ₹346 crore, reflecting a 26.9% increase YoY
- Cash balance: ₹4,290 crore as of December 31, 2024
As Info Edge continues to navigate the complexities of the market, its strong performance signals resilience and potential for future growth, especially with strategic investments in high-potential segments.
