Info Edge climbs 8% ahead of Q2 results. Here's what analysts say

Shares of Info Edge climbed 8 per cent in Friday's trade, ahead of the company's September quarter results. The scrip jumped 8.05 per cent to hit a  high of Rs 4,123 on BSE. Despite this, the stock is still down 41 per cent year-to-date. All eyes are Info Edge's FY23 outlook of recruitment, real estate and matrimony business and investments in marketing and employees.

Nuvama Institutional Equities expects Info Edge to clock a 41 per cent YoY jump in core profit at Rs 150 crore for September quarter on a 42 per cent YoY rise in sales at Rs 514.90 crore. Ebitda for the quarter is seen at Rs 166.60 crore, up 50 per cent. ICICIdirect sees Q2 profit at Rs 147.90 crore. It sees revenues rising 47 per cent to Rs 517.20 crore.

Nuvama said revenue growth will be led by growth in the core recruitment business on the back of strong cash collections of Rs 420 crore in June quarter. Revenue for Jeevansathi is expected to decline 22 per cent QoQ, as the company has decided to provide most of its services for free while revenues for 99acres (up 6 per cent QoQ) and Shiksha (down 10.7 per cent QoQ), it would be a mixed trend.

Ebitda margin is expected to remain flat as strong growth in recruitment and heavy ad spends in real estate and matrimony continue. Nuvama said one would watch the hiring trends in non-technology sectors, recovery in the real estate sector and update on new investment.

"We expect Info Edge's revenues for the quarter to be impacted by some slowdown in hiring in IT sector while revenue for Jeevansathi will impact due t o continuation of some free features in the business. We expect the company's revenues to improve by 2 per cent QoQ crore, mainly led by 3 per cent QoQ growth in recruitment revenues, with some impact of IT hiring slowdown while hiring in other sectors of BFS, Insurance, Retail and Travel & Tourism continue to be steady," ICICIdirect said.

ICICIdirect is factoring in a moderate growth in 99 acres while it sees revenues for Jeevansathi falling 5 per cent sequentially.

"We expect consolidated margins to decline QoQ by 50 bps due to continued increase in employee as well as marketing spend. PAT is expected to decline by 0.4 per cent QoQ," it said.

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