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Info Edge reported strong 1Q12 standalone results. The top line rose 31.5% yoy and margin
improved 547bp yoy. We raise our FY12/13F EPS 5%/6%, building in 1Q12 outperformance but
tempering for normalisation of collections in 1Q12 and less growth in the real estate segment.
Buy with a new Rs864 TP (from Rs828).
Strong 1Q12 performance on margins driven by significant operating leverage
Info Edge reported standalone revenue growth of 6.4% qoq (up 31.5% yoy) at Rs867m, fairly
strong in a seasonal context (RBS estimate: 3.5% qoq). More surprising, EBITDA margin rose
162bp qoq (up 547bp yoy) to 36.5% (RBS: 31.7%). In addition to top-line growth, staff costs rose
only 5.8%, despite the announcement of an 18-20% salary increase. Management attributed this
to lower incentive payouts as collections peaked in 4Q11. This helped drive PAT (preexceptionals)
up 17.9% qoq (up 48.3% yoy) to Rs256m (RBS: Rs225m)
Naukri on a roll, while JeevanSathi’s growth looks encouraging
Revenues from the flagship classified jobs business, Naukri’s corporate services, grew 35% yoy
(32% in 4Q11). JeevanSathi’s (matrimonial portal) revenues grew 27% yoy, the highest since
FY09. 99acres, the real estate portal, recorded robust growth of 52% yoy, while Shiksha, the
education classified portal, grew revenues 127% due to TV advertising.
1Q12 collections normalise; impact of slower GDP growth/interest rate bears watching
Collection growth came off a very strong 4Q11 (39.0% yoy) to a more normalised 24.8% in 1Q12.
Current levels are healthy, but economic growth and interest rate trends can influence the
recruitment and real estate segments. In addition, management said that the caps placed recently
on license usage have seen resistance from some large clients, although it has not materially
affected collections. Current hiring (headcount up 24% yoy) and planned ad placements are
building in continued strong growth, according to management.
Raise our FY12/13F EPS 5%/6% on 1Q12, but temper real-estate growth prospects
We raise our FY12/13F revenues c1% and EPS 5%/6%, building in 1Q12 outperformance. Our
upgrades are limited by normalisation of collections in 1Q12 and our lower forecasts for the real
estate segment given the slowdown in the Mumbai and NCR markets. We stay at Buy and driven
by our earnings upgrades, we raise our TP to Rs864 (from Rs828).
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Info Edge reported strong 1Q12 standalone results. The top line rose 31.5% yoy and margin
improved 547bp yoy. We raise our FY12/13F EPS 5%/6%, building in 1Q12 outperformance but
tempering for normalisation of collections in 1Q12 and less growth in the real estate segment.
Buy with a new Rs864 TP (from Rs828).
Strong 1Q12 performance on margins driven by significant operating leverage
Info Edge reported standalone revenue growth of 6.4% qoq (up 31.5% yoy) at Rs867m, fairly
strong in a seasonal context (RBS estimate: 3.5% qoq). More surprising, EBITDA margin rose
162bp qoq (up 547bp yoy) to 36.5% (RBS: 31.7%). In addition to top-line growth, staff costs rose
only 5.8%, despite the announcement of an 18-20% salary increase. Management attributed this
to lower incentive payouts as collections peaked in 4Q11. This helped drive PAT (preexceptionals)
up 17.9% qoq (up 48.3% yoy) to Rs256m (RBS: Rs225m)
Naukri on a roll, while JeevanSathi’s growth looks encouraging
Revenues from the flagship classified jobs business, Naukri’s corporate services, grew 35% yoy
(32% in 4Q11). JeevanSathi’s (matrimonial portal) revenues grew 27% yoy, the highest since
FY09. 99acres, the real estate portal, recorded robust growth of 52% yoy, while Shiksha, the
education classified portal, grew revenues 127% due to TV advertising.
1Q12 collections normalise; impact of slower GDP growth/interest rate bears watching
Collection growth came off a very strong 4Q11 (39.0% yoy) to a more normalised 24.8% in 1Q12.
Current levels are healthy, but economic growth and interest rate trends can influence the
recruitment and real estate segments. In addition, management said that the caps placed recently
on license usage have seen resistance from some large clients, although it has not materially
affected collections. Current hiring (headcount up 24% yoy) and planned ad placements are
building in continued strong growth, according to management.
Raise our FY12/13F EPS 5%/6% on 1Q12, but temper real-estate growth prospects
We raise our FY12/13F revenues c1% and EPS 5%/6%, building in 1Q12 outperformance. Our
upgrades are limited by normalisation of collections in 1Q12 and our lower forecasts for the real
estate segment given the slowdown in the Mumbai and NCR markets. We stay at Buy and driven
by our earnings upgrades, we raise our TP to Rs864 (from Rs828).
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