Info Edge Q3 results preview: Shares rise as company may consider stock split

Info Edge (India) is set to announce its results for the quarter and nine-months ending on December 31, 2024 later today. The company board will meet to consider and approve the financial results for the quarter and analysts tracking the stock are expecting the internet based player to report a strong performance in the quarter, returning to black on a

year-on-year (YoY) basis.

The brokerage firms are expecting a strong growth in revenue and Ebitda on yearly basis with an expansion in Ebitda margins of nearly 200 basis points (bps) YoY. However, a single digit growth is seen on a quarter-on-quarter (QoQ) basis. Segment-wise performance and management commentary shall also be tracked by the market participants.

Kotak Institutional Equities is penciling in net sales of Rs 681.4 crore for the December 2024 quarter, up 14.5 per cent YoY and 3.9 per cent QoQ. Ebitda for the quarter is likely to come in at Rs 288.2 crore, up 19.8 per cent YoY and 5 per cent QoQ, with margins improving 187 bps YoY to 42.3 per cent. Net profit is seen at Rs 259.1 crore, up 21.4 per cent YoY.

"We expect Naukri to report 12 per cent YoY revenue growth and 99acres to report 17 per cent yoy revenue growth. Other segments to report 27.3 per cent and 32 per cent YoY revenue growth, respectively. We expect higher YoY growth for Naukri based on recent billings growth prints and assumption of some recovery in hiring by IT companies," said Kotak.

Ahead of its quarterly earnings, shares of Info Edge (India) Ltd inched up 2.4 per cent to Rs 7,889.55 on Wednesday, with its total market capitalization hitting Rs 1 lakh crore mark. The stock had settled at Rs 7,704.05 on Tuesday. The stock is down more than 16 per cent from its 52-week high at Rs 9,194.95 hit in January 2025.

Nuvama Institutional Equities pegs revenues for Info Edge at Rs 678.5 crore in the December 2024 quarter, up 14 per cent YoY and 3 per cent YoY. Ebitda is likely to come in at Rs 287.7 crore, 20 per cent and 5 per cent YoY. Core net profit is likely to come in at Rs 262.5 crore, 23 per cent YoY and 11 per cent QoQ.

"We expect revenue to grow 3.4 per cent QoQ and 14 per cent YoY, driven by strong growth in the Non-Recruitment business. Recruitment business to report growth of 3 per cent QoQ and 13.2 per cent YoY in Q3FY25. Ebitda margin is expected to increase by 60bps QoQ," Nuvama said.

The company board will also consider stock-split of its shares, said the company in a separate exchange filing. "The board of directors will also consider the proposal for alteration in the share capital of the Company by way of sub-division/ split of the existing equity shares of the face value Rs. 10 each, fully paid-up, in such manner as may be determined by the board subject to approval of the shareholders of the company," it said.

B&K Securities expects Info Edge (India) to report a revenue of Rs 663.8 crore in December 2024 quarter, up 11.5 per cent YoY and 1.2 per cent QoQ. Ebitda is seen at 42.1 per cent, better from 40.4 per cent a year ago. Net profit is penciled at Rs 253 crore, 18.5 per cent YoY.

The internet names have delivered economics/profitability, with some impact on growth likely. Info Edge should see sustained growth, supported by marginal recovery in hiring, while commentary on the profitability of its platforms, 99Acres and JeevanSathi, will be key areas to monitor, B&K Securities, which has a 'buy' rating on the stock.