Naukri Owner Info Edge Records Revenues Of Rs 147 Crore In 2006-07
Info Edge Ltd, the company which owns jobs portal Naukri.com, has announced its Q4 results. The company has posted revenues of Rs 47.29 crore ($11.5 million) in Q4 ended March 31, 2007. It has recorded profits of Rs 10.01 crore ($2.4 million) during the same period.
As for the whole year 2006-07, Info Edge has registered revenues of Rs 147.16 crore ($35.8 million), up from Rs 84.05 crore ($20.4 million) in 2005-06. It also posted net profits of 27.08 crore ($6.6 million), up from Rs 13.29 crore ($3.24 million) the previous year.
Recruitment revenues constitute roughly 92 per cent of the company’s revenues. The rest is contributed by Jeevansathi.com and 99acres.com.
Some notes:
1) Company makes 27 cr. net profit, out of which "other income" is 7.6 crores. 28% of their profit comes from "other income"?
2) They got Rs. 170 cr. from their IPO, unused till now. This itself can be a cash yield of 9% post tax – meaning, 15.3 cr. of "other income" in the next year. Great for the bottomline, but bad return on equity.
3) SOmeone tell me my mathematics is wrong. They made 27.08 cr. in profit. They have 27.295 cr. shares outstanding (capital of 272.95 cr. at 10 Rs. per share face value). IF I divide the profit by number of shares, I get an EPS of 9.92.
They report EPS of 11.31. What gives?
At today's share price of 750 they have a P/E of 75.
(That should have been capital of Rs. 27.925 cr, and 2.7295 cr shares, sorry. My funda stays correct though – EPS reported 11.31, but if you do a plain division it's 9.92)
deepak, please refer to a fin. consultant. that's just not the way it is calculated
Rakesh, could you tell me how it is calculated then? Every other company calculates it the way I did.
Oh you mean they used the weighted average number of shares? They haven't announced the number of shares used in the calculation.
Weighted average EPS is simply wrong. Earnings for the last six months include a whopping amount of other income that's attributed to interest from IPO proceeds anyhow. But that's not the real problem.
Imagine this: They have to grow profits at 14% this year just to *maintain* their reported EPS. If they grow their bottomline by 25%, EPS growth is only 11%. That is plain wrong for investors looking forward. I'd always use an end of period number of outstanding shares to calculate the "real" EPS.
Guess what, they are also releasing ESOPs to employees. Further dilution is going to happen.
Look at Mindtree. They will grow 30% but because of this weighted EPS calculation and ESOP based dilution their EPS guidance is EXACTLY what it was for the last four Q. Grow profits 30%, but the real EPS grows 0%.
I'm looking at it from an investor point of view , of course. EPS growth has to be measured using the SAME number of shares forward and past.
In IPO prospectus, it was reported that these new verticals contributed 7.3% (Rupees 59.9 million) in Apr05- Mar 06. I saw a report today in DNA Mumbai which said that the new verticals (matri, property) grew by 422% year over year, which means sales of Rs 324 million in the year Apr06-Mar 07. By deducting this, it can estimated that Naukri (Jobs vertical) grew by just about 40% in Apr06-Mar07. Is that true? If it is, they are losing market share BIG TIME to other players like Times, Monster etc. Is this the reason why they don't explicitly show the revenue of different verticals? Can someone help me understand?
Can someone answer? It appears all the participants in the blogs are employees of the company bragging their achievements and not real people with independent opinions.
I guess you are right Sunil :)