Info Edge Sees Dip In Sales By 19% In Q1; Profits Up Marginally
Profits were a little higher with Rs 13.30 crore in Q1 2009-10 compared to Rs. 12.97 crore for Q1-2008-09.
Infoedge India Ltd, the owners of internet portals such as Naukri.com, 99acres, and JeevanSathi, has reported a dip in net sales in Q1 this year to Rs 52.9 crore from Rs 63.12 crore during the same period last year. However, the company has managed to keep the profitability a little higher with Rs 13.30 crore in Q1 2009-10 compared to Rs. 12.97 crore for Q1-2008-09.
“The sales dip in Q1 was expected, but we are hoping for a recovery by end of Q3,” said Sanjeev Bikhchandani, Managing Director of Info Edge, to VCCircle. He added that there was an 8% increase in hiring in June over May. The sectors that saw a dip in hiring were export driven sectors like IT, real estate, retail and media & advertising.
The company has managed to cut costs and keep its bottomline healthier in a tough economic environment where hiring had seen decline across the sectors. The employee cost declined to Rs. 20.85 crore in Q1-10, from Rs. 24.34 crore in Q1-09; advertising and promotion costs were down to Rs. 9.07 crore from Rs. 12.14 crore last year.
According to CFO Ambarish Raghuvanshi, “The results reflect the weakness in the main recruiting segment in line with macro economic trends. The silver lining is that hiring is close to bottoming out and the competitive position has improved. We continue to invest in product, technology and analytics.”
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