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Info Edge India: PAT includes one-time gain on Zomato listing

News: The company’s revenues increased 10.0% QoQ to Rs.351.7 crore, led by 15.2% QoQ increase in Recruitment revenues at 256.5 crores which largely compensated for marginal QoQ decline in other businesses. The company’s EBITDA margins were down 95bps QoQ due to sharp increase in employee as well as other expenses. It reported PAT of Rs.8,356 crore for the quarter, which includes MTM gain of Rs.8,941 crore due to Zomato Listing and Rs.375 crore (gain on sale of investment through OFS).  Effective listing date, Zomato Ltd ceases to be JV of the company and hence reclassified as financial investment and subsequently gain has been routed through P&L.  The company’s billing improved 61% YoY to Rs.402.3 crore.

Views: The company has seen healthy improvement in revenues on QoQ basis in recruitment business. In addition, the company has seen healthy improvement in billings on YoY basis. Going forward, we believe the company’s performance will improve, led by continued strong hiring in IT sector.