Naukri Shows 40% EPS Growth in Q3 FY11

Naukri (InfoEdge) showed some growth in the Q3 results.

Naukri Results

Revenue grew 28% over last year, to 75 crores, and profits grew over 40%, as did EPS. So where did they spend lesser? Turns out nearly 3 crores lesser than the last quarter in promotion and marketing. We’ll have to wait and see what management has to say.

But overall, this is a very overvalued stock. TTM EPS is sluggish at just 12.89. The Current market price is 574, and that means the P/E is an obscene 45+.

Naukri Chart

(Click for larger chart)

I’d […]

By |January 20th, 2011|Categories: InfoEdge||Comments Off

InfoEdge Results: EPS down 4%, Stock Up 4%

There is only one rule for the NAUKRI stock. If they announce bad results, the stock goes up.

image

For the last two years, the Trailing Twelve Month EPS has been between 20 and 23 and it is now near the low of the range. The profits have hardly grown much, even in a job market that has seen a substantial recovery, or so we are told.

image

This time, the cash flows are negative. But that’s just a little accounting thing – they’ve moved from fixed deposits to mutual funds (the latter being “investments” and therefore not cash equivalents). Overall, they have 107 cr. in MFs and 277 cr. in FDs, making for a […]

By |April 30th, 2010|Categories: InfoEdge||4 Comments

Links for 29 Mar 2010

It’s one of those days I have too much to read, so…

By |March 29th, 2010|Categories: InfoEdge, Readings||Comments Off

Info Edge (Naukri) Results: Another Down Quarter

Info Edge released it’s December 2009 quarter results:

image

A little disappointing in terms of growth, because they’ve stagnated in a way. True, the industry has been in a sorry state of affairs, but the hiring situation was supposed to be good last quarter and either it’s not, or Naukri wasn’t the beneficiary.

Info Edge’s primary business is Naukri.com, and they own sites like jeevansathi.com, 99acres.com, Brijj, AllCheckDeals and Shiksha.

Revenues at 59 cr. were 6% higher than the last quarter, but flat from December 09. Is it okay to compare Quarter on Quarter, or year-on-year? I’d say hiring is a seasonal business – that means what you might see in March is different from what you see in December. For multiple reasons – bonus handouts (people wait to quit after annual bonuses), school […]

By |February 1st, 2010|Categories: InfoEdge||1 Comment

InfoEdge: No EPS Growth, But Great Stock Price!

Info Edge (NAUKRI) continues to astound me. They’re literally flatlining EPS for the last six quarters, and yet, command a P/E of 35!

To talk less and show more, here’s a graph of their revenues, stock price and PE/EPS comparison.

(Click for a larger image)

  • Revenues have flattened since Jan 2008, and aren’t recovering much at all.
  • “Other Income” forms a substantial part of their profits even today. The most recent quarter had 14.74 cr. of net profit, and they had “other income” of 8.35 cr. The business literally hinges on the other income figure!
  • They have around 320 cr. in the bank, going from their recent financial statements. That is generating most of the other income – at 8% yield you’ll get about 6 cr. per quarter of income.
  • Other income is useful, but paying 35 P/E for a […]
By |December 13th, 2009|Categories: InfoEdge, Stocks||8 Comments

InfoEdge Q1 09 results out

Info Edge’s Q1 09 results are not very encouraging. They have grown EPS from 4.27 to 4.75, a y-o-y growth of 11.25%. Further a very large amount of money – 88% – comes from recruitment alone.

Their other sites include the matrimonial portal JeevanSaathi.com, real estate portal 99acres.com, other sites like brijj.com and shiskha. All these are losing money, though top lines seem to be growing. In fact they are losing MORE money than they did last year, inspite of growing top lines.

They’ve bought some FMPs which are going to mature in April 09, so their near 265 cr. of mutual funds is most likely going to yield profits then (not recorded now). So this year, the EPS may not have a huge other income component.

They made an EPS of 20 odd last year. If we annualise this quarter’s growth (11.25%) and add a bit here and there, we come to an EPS of Rs. 23. At the […]

By |July 27th, 2008|Categories: InfoEdge, Results||2 Comments

Info Edge May Issue 500 cr. FCCBs

Info Edge, the owner of Naukri.com and Jeevansathi.com is looking to issue upto Rs. 500 cr. worth of FCCBs for a new portal, Shiksha.com, and for further acquisitions.

I have been fairly negative on the stock in the past but it looks like the market has decided I am stupid. The share has zoomed from Rs. 320 offered in the IPO to a high of Rs. 1600 recently, from which it has retraced to around Rs. 1400 now. Even with less than 10 cr. worth of shares trading daily on the NSE, it’s in the F&O segment now, no mean achievement. So this share, like GBN and GMR, is one of the shares I cannot understand but will wholeheartedly admit that I have been proved wrong.

So what’s the new announcement all about? Firstly, that the company intends to issue fresh shares (which is what FCCBs will amount to) partly to finance a new portal, shiksha.com and to […]

By |December 25th, 2007|Categories: InfoEdge, Stocks||1 Comment

Info Edge Q4 – A mathematical error?

InfoEdge has announced it’s 4th Quarter 2007 results:

Like earlier, they seem to have their mathematics wrong. This time they note an annual revenue for 2006-07 at Rs. 147 cr. and a net profit of Rs. 27.08 cr. The number of shares they have outstanding, is 2.7295 cr. shares.

My high school mathematics tells me Earning per share = Earnings divided by number of shares. EPS therefore is Rs. 9.92 per share. But they report it at Rs. 11.31!

They’ve done this for TWO quarters now, and this is not an accident anymore – someone’s trying to pull wool over our eyes. I understand that this is a new business, but reporting the wrong EPS twice in a row is plain incompetance.

More problems:
1) Company makes 27 cr. net profit, out of which “other income” is 7.6 crores. 28% of their profit comes from “other income”?

This […]

By |May 4th, 2007|Categories: InfoEdge, Stocks||10 Comments

Info Edge (India) IPO : Too Many Questions.

Info Edge India Ltd. has an Initial Public Offer (IPO) going at a price of (between) 290 and 320 Rs. per share. The company is better known for its portals: Naukri.com, JeevanSathi.com and 99Acres.com. The offer document contains a lot of data and makes me ask a few questions I believe are relevant to my analysis of the issue.

But first, the basic details: The issue is about 170 Cr. in size at the upper end of the band. Post issue, they will have 2.729 crore shares. They’ve made profits of 13.2 cr. in FY 06, and 5.9 cr.* in Q1 FY07. Very wayward before that – 31 lakhs (2005), 2.43 cr. (2004), 1.67 cr. (2003).

* Update: I got this figure wrong. I took a consolidated profit figure, which is irrelevant. You should use Rs. 5.2 cr. instead.

The post issue EPS is Rs. 4.84 for FY06, and Rs. 2.16 for Q107. The P/E at the […]

By |October 31st, 2006|Categories: InfoEdge, IPO||9 Comments