Sanjeev Bikhchandani – Infoedge (Naurki) CEO Responds to WATBlog Article
We had recently blogged about the Naukri Q2 Results and pointed out the impending global economic slowdown and its impacts on Naukri.com’s business. Well Sanjeev Bikhchandani The Founder and CEO of Infoedge (Naukri) shot us an email with his response to our post inorder to put the numbers into ‘right perspective’.
So here we are reproducing Sanjeev’s ‘perspective’ on the Q2 results of Infoedge.
“I would like to highlight the following points :
* EBITDA margins on Naukri increased to 45% in July-Sept 2008 from 43% in July-Sept 2007. This is a very good achievement given the current economic environment
* You reported profits grew at 3.5% at the company level. However if you look at more granular data (as we had mentioned in our analyst call last evening) we invested Rs. 8.6 crs at the EBITDA level in our new businesses (Jeevansathi, 99acres, Shiksha, Brijj and Allcheckdeals) in July-Sept 2008. This number was at Rs. 2.9 crs in the same period the last year. This represents an increase of Rs. 5.7 crs in investments in new businesses. If we had maintained investments in new businesses at the same level as last year then operating EBITDA in July–Sept this year would have been Rs. 21.4 crs as compared to Rs. 16.4 crs the previous year – a growth of 30%. It is important to look at our profit performance with this degree of granularity.
* 99acres continues to fire well with a growth of 98% in July-Sept 2008 over the same quarter the previous year. Overall our non recruitment businesses grew at 71% in July-Sept 2008 over the same quarter the previous year. Once again a good performance.”
We are still asking our readers – What do you think would be the impact of slowdown on Naukri’s business? Will Jeevansaathi and 99acres grow fast enough?
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