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Info Edge: Jobs and real estate sector impacted by overall economy

Updated : February 12, 2020 02:54 PM IST

Info Edge, which owns and operates India’s largest online job portal Naukri.com, on Wednesday, said jobs and real estate sector were impacted by the overall economy after it posted a consolidated loss of Rs 62.1 crore for the quarter ended December 2019.

In an interview to CNBC-TV18, Hitesh Oberoi, managing director and chief executive officer, said revenue grew by 14 percent in Q3 but the business has been slowing down for the last 4-5 months.

Oberoi said, "We were acceptable till the first two quarters as of a lot of hiring in the IT services space but that also seems to have come off a bit lately. Going forward, it is hard for me to say what is going to happen. A lot will depend on gross domestic product (GDP) growth. If the economy picks up, our numbers should improve. But if it continues to slow down, then we may also struggle going forward."

Regarding Naukri, he said, "The recruitment business grew by 13 percent in revenue terms. However, it has slowed down compared to the last two quarters. Towards the end of the quarter, it slowed down further. We were acceptable for a while as IT companies were hiring and they were not impacted by the economic slowdown in India. But for some reasons, even IT hiring slowed down last quarter and that impacted our revenue growth in Naukri."

Further, Oberoi said Jeevansathi had a good quarter in revenue growth terms, "The business grew at over 20 percent last quarter but we have to struggle a lot more on marketing to gain share. So the business lost money at an EBITDA level but revenue growth came in solid. We continue to gain share in the north and west business. That will be our focus in the quarters to come."

"Zomato has just closed the transaction with Uber Eats and it has worked out well for them. Their volumes have gone up. They were able to transfer a lot of the customers from Uber Eats to the Zomato app successfully," he added.

In terms of 99acres, he further mentioned, “Revenue grew by around 15 percent last quarter. It is a slow market and it is not as if a lot of people are buying houses. Financing issues continue in this space for both developers and buyers of homes. However, the company has been benefiting for the last few years as lot of the revenue from offline is moving to online. Even in the contracting market, online continues to grow. So we are at a stage now where we are growing at 15 percent per annum. We are not losing a lot of money but we have to figure out how to grow the business faster going forward."
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