We spent on IPL, then in Q2 we didn't spend as much, says Naukri-owner Info Edge's MD
Naukri's IT segment grew by 12 percent, non-IT by 20 percent and the recruitment consultant segment by about 10 percent.
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White-collar recruitment platform Naukri.com has no plans to increase marketing spending in the upcoming quarter. The company, which increased its ad spending on the Indian Premier League (IPL) 2024 in Q1 FY25, will be adopting a cost-conscious approach in quarter 3 (October-December) FY25.
Naukri's ad and marketing spending grew to around Rs 22 crore because of the IPL 2024 in Q1 FY25.
In a recent earning call of Naukri's parent firm Info Edge, Hitesh Oberoi, Co-promoter and Managing Director said, the company has kept the budget low and decided on a quarterly basis. "We don't have a budget for the year. We spent on IPL, then in Q2 we didn't spend as much. And in Q3 also, we don't have a very big budget for marketing, and as far as Q4 is concerned we'll decide after Q3".
Info Edge's recruitment business witnessed a 9 percent growth in revenue to Rs 495 crore in the second quarter (July and September) in FY 25. The billing of the job portal grew by 14% to Rs 492 crore in the same period. The company's operating profit improved by 6 percent year-on-year to Rs 286 crore and the operating profit margin was 58 percent. At the same time, the cash generated from recruitment operations stood at Rs 289 crore, a YOY growth of 8 percent.
According to Oberoi, "Revenue growth lagged behind billing growth due to the slower billings observed over the last two or three quarters".
Oberoi said that the recruitment segment of Info Edge saw a growth of 14 percent YoY billings, a double-digit growth after five quarters. Naukri's IT segment grew by 12 percent, non-IT by 20 percent and the recruitment consultant segment by about 10 percent.
"After several quarters of slow demand, our recruitment business is now performing well with growth across all segments, IT, non-IT, and consultants. The October 2024 Jobspeak report was also promising, showing a YOY increase of 10%. We are hopeful that this positive trend will continue into the coming quarters," he said.
Info Edge's niche and adjacent businesses such as IIMJobs, Naukri Gulf, and Naukri Fast Forward have shown growth in Q2 of FY25 with year-on-year billings up by 40 percent, 18 percent, and 27 percent, respectively.
According to Oberoi, demand for talent is recovering as on the recruiter side, metrics like searches and CV views are on the rise. Naukri.com added an average of 24,500 resumes every day in Q2 of FY25. The recruitment website hosts around 103 million resumes and 16 million of app installation.
Oberoi said that the company is heavily capitalizing on Artificial Intelligence. "Naukri is a much bigger business. So, 70-80% of all our AI effort goes into Naukri. But the other businesses are also benefiting tremendously from AI already," he added.
Info Edge on Sunday held a Q2 earnings call. The company's net profit after taxes for the period decreased to Rs 86 crore in Q2 of FY25 compared to Rs 209 crore in Q2 of FY24 due to the hike in the effective long-term capital gains tax rate. The standalone billings stood at Rs 650 crore, a YOY growth of 14 percent, and revenue stood at Rs 656 crore. The operating profits at a standalone level grew by 15 percent year-on-year to Rs 251 crore.
