The company's recruitment business, including Naukri.com, derives about half of its revenue from the IT sector, wherein demand has been subdued for a while.
Info Edge's December quarter (Q3FY24) results met expectations, but its uncertain outlook has left investors jittery. Info Edge's shares are down by over 5% over the past two days, following its Q3 results.
The Naukri JobSpeak index-a measure of white-collar hiring across India shows that recruitments by the IT sector fell by 21% year-on-year during Q3. Still, healthy demand trends in non-IT sectors, such as healthcare, manufacturing and BFSI (banking, financial services, and insurance), restricted the fall in the JobSpeak index to 14% in Q3.
Info Edge's recruitment business revenue, as a result, grew 3% year-on-year, its slowest pace in at least 11 quarters.
The recruitment business also faces margin headwinds. In Q3, pretax profit margin stood at 57.6%, down 390 basis points year-on-year.
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