NEW DELHI: Shares of Info Edge climbed over 2 per cent in Tuesday’s trade after the company reported a consolidated net profit of Rs 93.66 crore for the quarter ended June 30. It had reported a loss of Rs 187.58 crore in the same period last year.
The scrip traded 2.35 per cent higher at Rs 3,369 on BSE.
Consolidated revenue of the company, however, declined 10.85 per cent YoY to Rs 285.05 crore. Total taxes also declined to Rs 195.32 crore against Rs 243.03 crore on YoY basis.
Commenting on the results, Chintan Thakkar, CFO of Info Edge, said, “We continue to evaluate the unfolding situation of the pandemic. Work from home and business continuity plan is operating satisfactorily. The billings are down by 43.9 per cent in Q1FY21 on YoY basis as a result of the nationwide lockdown. However, the immediate impact on the revenue tends to be lower as we recognize the revenue over the tenure of the contract. As a combined effect, operating margin is at 37.3 per cent for the quarter as compared to 32.3 per cent for the same quarter previous year.”
Axis Capital maintained ‘Add’ rating on Info Edge with a price target of Rs 3,570, citing better-than-expected margins.
“We like the management policy of incubating new ventures. Investments like Zomato and PolicyBazaar may further drive its valuation given there is still runway for growth. We see further upside led by a higher valuation of new ventures in funding rounds and reduction in cash burn for new ventures led by Zomato,” the brokerage said.