Strong Q2, growth outlook drive gains for Info Edge

The stock of online classified major Info Edge (India) was up over 6 per cent on Friday on expectations of demand improvement for Indian IT companies.

- DEVANGSHU DATTA

Strong revenue growth prospects for each of its online verticals—including recruitment, matrimony, real estate, education, and upside from its holdings in companies such as Zomato—had prompted Goldman Sachs to upgrade the stock.

Info Edge's standalone revenue grew 10.6 per cent year-on-year (Y-o-Y) in Q2FY25, beating consensus. 99acres (+16.9 per cent Y-o-Y) and Jeevansathi (+33 per cent Y-o-Y) were drivers of growth while recruitment grew 8.5 per cent Y-o-Y. Operating profit was up 13.8 per cent Y-o-Y to ₹274 crore, as margin expanded 117 basis points Y-o-Y to 41.8 per cent. Profit before tax growth of 14.8 per cent Y-o-Y to ₹2.51 crore also beat the Street estimates.

In its pre-quarter update, Info Edge had already disclosed a 14.3 per cent Y-o-Y growth in standalone billings, highest in the last 6 quarters. There was a recovery in both IT and non-IT segments.