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INFO EDGE
UNRATED (RS502, MCAP: RS22.6BN / US$498MN)
• Incorporated in 1995, Info Edge is the country’s leading online classifieds company in recruitment, matrimony, real
estate, education and related services. The company enjoys a strong market position in its online recruitment portal,
Naukri.com, and has successfully leveraged its expertise in the same to seek opportunities in other online classifieds
areas. Spurred by improving economic conditions, increasing internet penetration, and changing demographics, the
company expects to witness growth in all its segments.
• Business segments: The company’s business broadly encompasses four online classifieds divisions: recruitment –
Naukri.com; matrimonial – Jeevansathi.com; real estate – 99acres.com; education – Shiksha.com. It employs ~1,400
sales staff and has a nationwide coverage with ~48 branch offices across ~31 cities.
• Recruitment business: Info Edge derives ~85% of its revenues from online recruitment classifieds offerings –
Naukri.com, Firstnaukri.com, Naukrigulf.com and related services offerings Quadrangle and Brijj.com. Naukri.com
enjoys a dominant position in the Indian online recruitment space with ~60% traffic share. This business segment
derives most of its revenues from job listing and resume database access facilities. It also earns revenues from
jobseeker services, Google adsense, resume short-listing and screening. The company clocked ~Rs2bn revenue from
this division in FY10. On the back of a strengthening recruitment environment led by an improving economic
environment and strong hiring in various industries (especially IT services), the management expects this division to
grow by ~30% in FY12. In the coming few quarters, the company expects to incur addition product development costs
to counter competition from LinkedIn.com. Margins should, however, remain steady (at 40%+) as the increased cost
would be offset by a decrease in advertisement-related spend.
• Non-recruitment segment: The company derives ~15% of its revenues largely from its offering in matrimony, real
estate and education through Jeevansathi.com, 99acres.com, Allcheckdeals.com and Shiksha.com. Most of these nonrecruitment
businesses are still in the investment phase but have growth potential comparable to the recruitment
business. Also, with lesser correlation to the economic environment, these business segments provide a hedge to the
inherent cyclicality of the recruitment segment. 99acres.com is the market leader in real estate classifieds, while
Jeevansathi.com is the third-largest behind Shaadi.com and Bharatmatrimony.com.
• Capex plans: Info Edge plans to incur a capital expenditure of Rs800m-850m over FY12-13. It is also looking to
diversify into ecommerce-related platforms either directly or through an investee company as seen in
Policybazaar.com, Meritnation.com and Zomato.com.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
INFO EDGE
UNRATED (RS502, MCAP: RS22.6BN / US$498MN)
• Incorporated in 1995, Info Edge is the country’s leading online classifieds company in recruitment, matrimony, real
estate, education and related services. The company enjoys a strong market position in its online recruitment portal,
Naukri.com, and has successfully leveraged its expertise in the same to seek opportunities in other online classifieds
areas. Spurred by improving economic conditions, increasing internet penetration, and changing demographics, the
company expects to witness growth in all its segments.
• Business segments: The company’s business broadly encompasses four online classifieds divisions: recruitment –
Naukri.com; matrimonial – Jeevansathi.com; real estate – 99acres.com; education – Shiksha.com. It employs ~1,400
sales staff and has a nationwide coverage with ~48 branch offices across ~31 cities.
• Recruitment business: Info Edge derives ~85% of its revenues from online recruitment classifieds offerings –
Naukri.com, Firstnaukri.com, Naukrigulf.com and related services offerings Quadrangle and Brijj.com. Naukri.com
enjoys a dominant position in the Indian online recruitment space with ~60% traffic share. This business segment
derives most of its revenues from job listing and resume database access facilities. It also earns revenues from
jobseeker services, Google adsense, resume short-listing and screening. The company clocked ~Rs2bn revenue from
this division in FY10. On the back of a strengthening recruitment environment led by an improving economic
environment and strong hiring in various industries (especially IT services), the management expects this division to
grow by ~30% in FY12. In the coming few quarters, the company expects to incur addition product development costs
to counter competition from LinkedIn.com. Margins should, however, remain steady (at 40%+) as the increased cost
would be offset by a decrease in advertisement-related spend.
• Non-recruitment segment: The company derives ~15% of its revenues largely from its offering in matrimony, real
estate and education through Jeevansathi.com, 99acres.com, Allcheckdeals.com and Shiksha.com. Most of these nonrecruitment
businesses are still in the investment phase but have growth potential comparable to the recruitment
business. Also, with lesser correlation to the economic environment, these business segments provide a hedge to the
inherent cyclicality of the recruitment segment. 99acres.com is the market leader in real estate classifieds, while
Jeevansathi.com is the third-largest behind Shaadi.com and Bharatmatrimony.com.
• Capex plans: Info Edge plans to incur a capital expenditure of Rs800m-850m over FY12-13. It is also looking to
diversify into ecommerce-related platforms either directly or through an investee company as seen in
Policybazaar.com, Meritnation.com and Zomato.com.
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