Info Edge shares were surging on Monday after the Naukri.com parent posted a strong performance update for the fourth quarter.
What The Numbers Say: In FY24, standalone billings of Info Edge grew by 5.48% year on year to ₹2,495.9 crore. Within its segments, the recruitment solution segment, including Naukri and iimjobs, clocked ₹1,883.2 crore as standalone billing, marking a 1.81% year-on-year increase.
Info Edge released the information for the quarter and year ended March 31, ahead of the official announcement of the financial results for the period.
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Analyst Speak: Analysts at Nomura noted a strong recovery in Naukri billings, suggesting a potential stabilisation in IT hiring. The company’s management also expressed optimism about the slowdown in IT hiring, indicating near-peak utilisation levels among large IT services companies.
Naukri said that about 85% of companies are considering initiating campus hiring in FY25, alongside strong deal wins. The Naukri jobspeak index indicated a robust rebound in February with month-on-month growth of 13.2%.
Based on the strong Q4 performance and the potential stabilisation in IT hiring, Nomura anticipates Info Edge to report a 15% year-on-year billings growth in FY25 compared to a flat figure in FY24. The brokerage maintains a “buy” rating on the stock with a target price of ₹6,210.
Price Action: Naukri shares were trading 8.78% higher at ₹6,173.05 in afternoon trade on Monday. The stock has gained nearly 20% so far this year.
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