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### Info Edge (India) Limited Analysis
Info Edge (India) (Naukri): CMP: 6780: Long Term Growth: 17 CYear: 8% | FY_24 Result Update
#### Company Overview
Info Edge (India) Limited, commonly known by its flagship brand Naukri.com, is a leading Indian internet company with a diversified portfolio of online businesses. The company's primary revenue segments include recruitment, real estate, matrimony, and education.
#### Investments and Subsidiaries
Info Edge has a diverse range of investments and subsidiaries that enhance its market presence and operational capabilities. Some of the significant investments and subsidiaries include:
- **Naukri.com**: The leading job portal in India.
- **99acres.com**: Real estate portal.
- **Jeevansathi.com**: Matrimonial portal.
- **Shiksha.com**: Educational portal.
The company has also made strategic investments in various tech startups to broaden its service offerings and enter new markets.
#### Industry Overview and Outlook
Info Edge operates in the digital services sector, particularly focusing on recruitment, real estate, matrimony, and education. The industry has been growing steadily due to increased internet penetration, digital adoption, and economic growth. Key trends driving the industry include:
- **Digital Transformation**: Increasing shift towards digital platforms for recruitment, real estate, and other services.
- **Urbanization and Real Estate Growth**: Rising demand for real estate services.
- **Changing Social Norms**: Increased acceptance of online matrimonial services.
- **Education**: Growing emphasis on online education and e-learning platforms.
#### Peer Companies
Info Edge's primary competitors vary across its different business segments. Key peers include:
- **Recruitment**: Monster.com, LinkedIn.
- **Real Estate**: MagicBricks, Housing.com.
- **Matrimony**: Shaadi.com, BharatMatrimony.
- **Education**: Careers360, Collegedunia.
### Historical Performance
- **Revenue Growth**:
Fy_04: Sales and Profit was 19 Cr and 1 Cr respectively.
IPO_Fy_07: Sales and Profit was 147 Cr and 27 Cr respectively.
Fy_14: Sales and Profit was 505 Cr and 128 Cr respectively.
Fy_19: Sales and Profit was 1271 Cr and 592 Cr respectively.
Fy_23: Sales and Profit was 2345 Cr and (-70) Cr respectively.
Fy_24: Sales and Profit is 2536 Cr and 594 Cr respectively.
We can say Company was able to grow strong from mere 19 Cr sales 20 Years back to 2536 Cr last year. We saw strong profit growth during the last 20 Years, but as this is the holding company of many of the startup companies their loss make them inconsistent in the terms of Profits.
We saw a share rally 59X which is 25% CAGR during the last 18 Years along with consistent dividends.
### FY24 Consolidated Results
#### Revenue and Profit Growth
- **Revenue from Operations**: ₹25,363.40 Mn, up from ₹23,456.91 Mn in FY23. This shows 8% average Growth.
- **Profit before Exceptional Items and Tax**: ₹9,886.11 Mn, up from ₹6,498.64 Mn in FY23.
- **Net Profit for the Year**: ₹5946.82 Mn, up from the losses of ₹705 Mn in FY23. This shows great improvement during the later part of the year.
#### Margins
- **EBITDA Margin**: 36.50% (approximately), calculated from EBITDA/Revenue.Improved negative to positive.
### Cash Flow Highlights
- **Net Cash Flow from Operating Activities**: ₹10,740.37 Mn (balance unutilized funds from QIP proceeds).
- **Net Cash Flow from Investing Activities**: Net cash flow negative due to Significant investments in mutual funds and term deposits as well as stake increased in associate companies.
#### Future Outlook
The company's outlook remains positive, driven by:
- **Recruitment Rebound**: Anticipated growth in the recruitment business.
- **Non-Recruitment Growth**: Continued robust performance in real estate, matrimony, and education verticals.
- **Strategic Investments**: Ongoing investments in tech startups and new ventures.
- **Operational Efficiency**: Focus on reducing operational losses and enhancing cash generation.
Info Edge is well-positioned to leverage its strong market presence and diversified portfolio to drive future growth and shareholder value.
Considering the improvement during the last 2 Quarters new buying again can be done during any fall near 3721 while we may see the rally towards 9106 in the next 2 years where some 5% Profits can be booked.
Long term growth of 15% could be assumed which can take Info Edge towards 5000 Cr sales & Profits of 1500 Cr+ at fy_2030.
Multiyear rally along with high consistent dividends can be expected.
Disclosure: Document has been prepared for the education purposes and not be used as some recommendation or Tips.
