Any current/future new fundraising through debt or equity?

No explicit mention of any current or future new fundraising through debt or equity in the provided transcript. Discussion on Info Edge Ventures getting a new investor for its funds, but it relates to existing venture funds (Fund 1 mostly done, Fund 2 and Capital 2 scouting new companies), with no specific mention of fresh fundraising through public equity or debt issuance. Cash balances are strong (Rs 3562 Cr as of June 30, 2023), and the company seems focused on cautious investments and long-term strategies. No indication of plans to raise fresh capital via debt or equity in the near term as

Any current/future capex/capital investment/strategic investment?

Non-IT business is seeing growth with plans to expand physical offices to more cities, potentially 60-80 cities over the next 1-2 years to cater to broader hiring demand. New offices start small with 1-2 salespeople and are profitable within months; additional sales hires focused on launching new products like Zwayam and IIMjobs. Investment continues in new businesses like JobHai and Ambition Box, with current marketing spend around Rs 20-25 crore per quarter despite no immediate revenue generation. Marketing spends are managed carefully, potentially increasing if market conditions remain favo

Future growth expectations in sales/revenue/volumes?

Long-term outlook remains bullish on the Indian market, expecting growth to normalize after short-term slowdowns lasting 2-4 quarters. Recruitment segment growth expected to stabilize at 15-20% per annum aligned with 5-6% GDP growth, post-COVID base effects. Non-IT hiring is broadening and growing, expected to contribute more to revenue, potentially shifting mix slightly from IT to Non-IT over time. Physical sales offices expanding to 60-80 cities to cater to Non-IT demand, enhancing distribution and client reach. Marketing spends on new businesses like JobHai and Ambition Box continue

Future growth expectations in earnings/operating earnings/profits/EPS?

Info Edge expects long-term growth in their core recruitment business to stabilize at 15-20% annually once COVID and post-COVID base effects normalize, assuming the Indian economy grows at 5-6% (Page 13). The recruitment segment faces near-term challenges in IT hiring with slowdown, but sustained growth in non-IT sectors is anticipated (Page 4, 6, 13). 99 Acres shows significant billing growth (20% YoY) and revenue growth (24.6% YoY), with improving operational metrics and reduced losses, indicating improved profitability prospects (Page 4, 7). Investments in new businesses like JobHai and Amb

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Info Edge (India) LtdQ2 FY24Retailing

Info Edge (India) Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,187P/E: 44.5Market Cap: ₹60.2K CrSector: Retailing

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Long-term outlook remains bullish on the Indian market, expecting growth to normalize after short-term slowdowns lasting 2-4 quarters.
→Recruitment segment growth expected to stabilize at 15-20% per annum aligned with 5-6% GDP growth, post-COVID base effects.
→Non-IT hiring is broadening and growing, expected to contribute more to revenue, potentially shifting mix slightly from IT to Non-IT over time.
→Physical sales offices expanding to 60-80 cities to cater to Non-IT demand, enhancing distribution and client reach.
→Marketing spends on new businesses like JobHai and Ambition Box continue despite short-term lack of revenue, highlighting long-term investment strategy.
→Real estate business (99 Acres) showing strong top-line growth backed by market buoyancy and increased listings, with cautious marketing spend increases planned.
→Client renewals currently pressured due to hiring slowdowns and bench size issues but expected to rebound with economic recovery.

Margin guidance

Category 3

→Info Edge expects long-term growth in their core recruitment business to stabilize at 15-20% annually once COVID and post-COVID base effects normalize, assuming the Indian economy grows at 5-6% (Page 13).
→The recruitment segment faces near-term challenges in IT hiring with slowdown, but sustained growth in non-IT sectors is anticipated (Page 4, 6, 13).
→99 Acres shows significant billing growth (20% YoY) and revenue growth (24.6% YoY), with improving operational metrics and reduced losses, indicating improved profitability prospects (Page 4, 7).
→Investments in new businesses like JobHai and Ambition Box will continue, with current losses expected as these are long-term plays (Page 11, 15).
→Operating profit margins improved significantly in Q1 FY24 to 35.8% (including acquired businesses), driven by controlled costs and marketing spend optimization (Page 3, 7).
→Overall, management remains bullish on the Indian market and expects business normalization and earnings growth after this cyclical slowdown (Page 15).

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Fundraise plans

→No explicit mention of any current or future new fundraising through debt or equity in the provided transcript.
→Discussion on Info Edge Ventures getting a new investor for its funds, but it relates to existing venture funds (Fund 1 mostly done, Fund 2 and Capital 2 scouting new companies), with no specific mention of fresh fundraising through public equity or debt issuance.
→Cash balances are strong (Rs 3562 Cr as of June 30, 2023), and the company seems focused on cautious investments and long-term strategies.
→No indication of plans to raise fresh capital via debt or equity in the near term as per the Q&A excerpts.

Order book

The transcript provided does not explicitly mention current or expected orderbook or pending orders for Info Edge (India) Ltd. However, here are related insights that can be linked: - Naukri's IT hiring demand has slowed down, with the Jobspeak index down 3% YoY in Q1 FY24 and a further decline in July. - Non-IT hiring remains relatively buoyant, which may influence business order flow positively. - Real estate segment (99 Acres) shows strong traction with billing growth of 20% YoY in Q1 FY24 and positive demand environment indicating healthy order inflows. - Client renewals are taking longer due to slower market conditions, indicating potentially delayed booking of orders. - Companies are currently cutting back on hiring and are cautious in contract renewals, affecting near-term demand. No specific figures or formal orderbook data are disclosed in the transcript.

Capex plans

Yes

→Non-IT business is seeing growth with plans to expand physical offices to more cities, potentially 60-80 cities over the next 1-2 years to cater to broader hiring demand.
→New offices start small with 1-2 salespeople and are profitable within months; additional sales hires focused on launching new products like Zwayam and IIMjobs.
→Investment continues in new businesses like JobHai and Ambition Box, with current marketing spend around Rs 20-25 crore per quarter despite no immediate revenue generation.
→Marketing spends are managed carefully, potentially increasing if market conditions remain favorable to support 25%+ growth.
→99 Acres plans to expand offices to smaller towns, seen as strategically important over 3-5 years despite most revenue still from top cities.
→Info Edge Ventures is cautious but finds this a good time for long-term investments with reasonable valuations and smaller round sizes.

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1Info Edge (India) Ltd

Rev 3Mar 3

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