Naukri.com parent's shares crash 5% today: What's the reason?
What's the story
Info Edge (India) Ltd, the parent firm of Naukri.com, witnessed a sharp 5% decline in its share price today after it reported its first quarter business update. The company's standalone billings for the June quarter grew 11.23% year-on-year to ₹644.2 crore from ₹579.4 crore in the same period last year. However, the market reaction was not as positive as expected because of concerns about slower growth in the core job portal business and rising competition, which could affect investor sentiment.
Business performance
A look at recruitment, real estate billings
Info Edge's recruitment billings grew by 9%, while its real estate billings saw a 16% increase compared to the same quarter the previous year. The firm's net profit for the last quarter jumped to ₹463.3 crore from just ₹60 crore a year ago, with revenue rising by 14%. However, despite these positive figures, margins slipped slightly and the stock has fallen nearly 20% this year.
Investor worries
Market worried about slowdown
The market appears to be concerned about a slowdown in Info Edge's primary job portal business and the emergence of new competitors. This could be a possible reason behind the company's share price decline, despite its strong financial performance in Q1. The company's board also recommended a final dividend of ₹3.6 per equity share for FY25, which may not have been enough to offset investor concerns over future growth prospects.
Figures
What about the share prices?
Today, Info Edge stocks declined 5.5% to touch an intraday low of ₹1,404.1 apiece. The share was down 3.48% at ₹1,434.40 at 12.35pm. It has gone down by 19.2% this year, so far.