The drop in profit is attributed to a rise in deferred tax charges amounting to Rs 260 crore. The company has also recorded Rs 363 crore in extra deferred tax charges from previous years under other comprehensive income.
“As per the change in the Finance Act 2025, as introduced in the recent budget, there was a hike in the effective long-term capital gains tax rate from 11.4% to 14.3%. Due to the above and in line with accounting standards, we have accounted for an additional deferred tax charge pertaining to previous years of Rs 260 crore in the P&L, which led to reduced net profits after taxes,” managing director and chief executive Hitesh Oberoi told analysts during a post-earnings call.
Its expenses rose 8% to Rs 492 crore, with employee benefits (Rs 306 crore) and advertising and promotion (Rs 91 crore) accounting for much of that.
The company’s recruitment solutions business, which includes Naukri.com, grew 9.5% to Rs 515 crore, while revenue from real estate listing portal 99acres rose 17% to Rs 102 crore. At its other businesses, including Jeevansaathi.com and Shiksha.com, revenue increased nearly 20% to Rs 84 crore.
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According to Oberoi, after several quarters of soft demand, its recruitment business is performing well with growth across all segments, while its non-recruitment businesses are also growing and are close to becoming self-sustaining. “We’ve had a tough five or six quarters, and we’ve grown in double digits, possibly after five quarters of low single-digit growth. October was not bad. We are hoping that this momentum will continue, at least for some more time.
“To diversify and grow our overall client base, we’ve been expanding in the GCC and non-IT sectors by strengthening our go-to-market offerings and acquiring new clients, particularly by increasing our reach in tier II and tier III cities,” he added.
The company plans to make significant investments in artificial intelligence (AI) and aims to create new revenue streams through it.
“We want to double down on our AI investments, and I think we will realise value from these investments very quickly,” Oberoi said.
For the fiscal year ending on March 31, Info Edge had posted a consolidated net profit of Rs 594 crore, compared to a loss of Rs 70 crore in the previous fiscal year, with operating revenue increasing to Rs 2,536 crore from Rs 2,345 crore.
Shares of the company closed 3.53% down at Rs 7,625 on the BSE on Friday.
