Shares of Info Edge (India) Ltd gained as much as 6.4% in intraday trade on Thursday, continuing the post-earnings rally for a third day. The company had reported a strong set of numbers for the March quarter, which pushed up the stock over 12.6% in the last three sessions.
Info Edge, which owns online job portal Naukri.com, reported a 10.8% sequential decline in net profit to Rs 66.3 crore due to one-time loss of Rs 17.4 crore related to impairment of investments during the March quarter, but revenue from operations increased 4.1% to Rs 292.6 crore. Notably, the company had posted a loss of Rs 13.75 crore in the year-ago quarter.
The company also reported 53.8% jump in the standalone operating earnings, or earnings before interest, tax, depreciation and amortization (Ebitda) at Rs 91.3 crore for the March quarter compared with the year-ago quarter. Net sales grew 21.6% year-on-year to Rs 293 crore.
Info Edge is one of India’s biggest internet-based business. Over a period of more than two decades, it has steadily developed a portfolio of brands across different domains that primarily provide online classified services. Besides the company’s flagship brand Naukri.com, it also owns and manages 99acres.com, jeevansaathi.com, shiksha.com. Besides that, it also has investments in Zomato and Policybazaar.
Meanwhile, Info Edge on Tuesday also said it will acquire Highorbit Careers, the owner of job portals iimjobs.com and hirist.com, for cash consideration of Rs 80.82 crore.
Post earnings, CLSA gave a ‘buy’ call on the stock while pushing up the target price from Rs 2,070 to Rs 2,400 per share. Zomato posted FY19 growth of over 200%, supported by explosive growth in its delivery business. Hence, CLSA lifted its Zomato revenue estimates by 40-43%.
Global brokerage Jefferies maintained its ‘hold’ rating on the stock with a target price of Rs 1,715. It said March quarter revenue across key businesses was largely in line with estimates, and Ebitda was 4% ahead of estimate, helped by lower losses in Jeevansathi.