Info Edge Reports Profitable FY24 After Loss in Previous Year

Info Edge, the company behind popular online platforms like Naukri.com and 99acres, recently released its financial results for the fiscal year ending March 2024 (FY24). The company experienced a modest yet positive increase in revenue, coupled with a significant shift from a loss to a profit.

Revenue Breakdown

Overall revenue for FY24 witnessed an 8% rise, reaching Rs 2,536 crore compared to Rs 2,345 crore in the previous year. This growth was primarily driven by their core businesses like Naukri.com and related portals, which contributed 74.1% of the total revenue. Income from this segment increased by 7.49% to Rs 1,880 crore in FY24. Additionally, the real estate portal 99acres saw a substantial surge of 23.6% in revenue, reaching Rs 351 crore. Other segments like Jeevansathi and Shiksha collectively contributed Rs 305 crore in revenue during the year. Info Edge also generated Rs 414 crore from non-operating activities, bringing the total revenue for FY24 to Rs 2,950 crore.

Controlled Expense Growth

Similar to many other internet companies, Info Edge’s largest expense category is employee benefits. This expense experienced a minimal increase of only 2.83% in FY24, reaching Rs 1,128 crore compared to Rs 1,097 crore in the previous year. Overall, the company managed to keep its total expenditure growth under control. While network/internet costs, advertising expenses, legal fees, travel expenses, and other overheads did rise slightly, the total expenditure for FY24 remained at Rs 1,830 crore, a marginal increase from Rs 1,858 crore in FY23.

Exceptional Items and Joint Ventures Impact

It’s important to note that Info Edge’s financial statements for FY23 included significant exceptional items due to decreased investment values. These exceptional items were Rs 110 crore for FY24 and Rs 509 crore for FY23 and were the primary reason for the loss reported in FY23. Additionally, the company has stakes in 15 joint ventures, including notable names like Makesense and Ustraa. Losses incurred by these joint ventures, amounting to Rs 131 crore in FY24 and Rs 231 crore in FY23, are part of the consolidated figures and reflected in the overall financial statements.

Profitability Achieved

Taking these factors into account, Info Edge successfully achieved a net profit of Rs 594 crore in FY24, a stark contrast to the loss of Rs 70 crore reported in the previous year. This significant turnaround highlights the company’s improved financial performance.

Efficiency Ratio Improvement

While financial statements provide a comprehensive view, a simple efficiency ratio can further illustrate the company’s progress. In FY23, for every rupee earned, Info Edge spent Rs 0.72. This ratio suggests some inefficiencies. However, a profitable FY24 indicates potential improvements in cost management.