INTERVIEW: With Rs 1200 cr in cash, we're ready to buy start-ups:
Info Edge Demonetisation is expected to impact the financial performance of India’s internet firms. Leading internet firm Info Edge has also been impacted by the move. Hitesh Oberoi (more) CEO & MD, Info Edge | Demonetisation is expected to impact the financial performance of India’s internet firms. Leading internet firm Info Edge has also been impacted by the move. Its real estate portal 99acres has seen a 40 percent decline in resale traffic but is seeing some recovery now. In an interview with Malini Bhupta Info Edge ’s CEO Hitesh Oberoi talks about the company’s strategy and its intention to acquire start-ups as valuations have improved.
Q: The Street expects demonetisation to impact your quarterly performance as 99acres has been impacted the most. Is that correct? A: Yes, we did see a dip in traffic on 99acres immediately after demonetisation. In fact, resale traffic fell overnight by 40 percent. We have, however, seen a mild recovery in traffic/inquiries in the last few days and are hopeful that things will get back to normal soon. Q: Has Demonetisation impacted sentiment in the job market? Naukri has seen some slowdown in collection growth in the second quarter itself but has it worsened in the December quarter? A: Anecdotally, what I can tell you is that the naukri business especially the SME segment has been impacted due to demonetistaion to some extent. However, by and large our large enterprise accounts were not impacted much. Q: How are consumers behaving online and how has the cash crunch impacted transactions? A: Jeevansathi is the only business where we get a significant chunk of our revenues from consumers. Post-demonetisation consumer payments were hit for around 5-6 weeks. They are now back on track.
Q: What is the percentage of cash transactions for the company and do you see consumers moving to digital forms of payment? A: We don't have significant cash transactions in any of our businesses. Q: Do you see impact of demonetisation to persist in Q4 and FY18? A: Our sense is that things are slowly getting back to normal. Hopefully, every month from now on will be better than the previous month. If the Budget is industry-friendly we expect things to return to normal very quickly. It's difficult to comment right now on what 2018 will be like. Q: Do you see a slowdown in jobs creation thanks to demonetisation and what sectors are worst hit? A: There may have been a slight impact in Q3 especially in the small and medium scale sector. It's difficult to say what will happen going forward.
Q: Do you expect revenues to pick up this year and what is your expectation for the next fiscal? A: The March quarter is normally the best quarter for all our businesses and we are hopeful that it will be the case this year as well. We are hopeful that barring the real estate space any negative impact of demonetization is largely behind us and, therefore, next few quarters will be better. Q: Internet businesses are seeing consolidation as pressures on financial performance increases. What are your challenges in the current environment? A: We believe we are on a pretty good wicket.
The Naukri India business continues to grow well and operating margins in naukri are at an all-time high. Jeevansathi Is now the fastest growing matrimonial site. In fact, it broke even last quarter. In 99acres we were confident of breaking even in the March quarter but this may now get delayed by two or three quarters because of the impact of demonetisation. However, in the long run demonetization should be net positive for 99acres as prices fall and more genuine buyers come into the market as a result. We are sitting on Rs 1200 crores of cash and are in a good position to acquire startups, invest in new companies as valuations correct and raising funds becomes harder in the private market.
Read more for HNI Stock Tips- http://www.aceinvestmentadvisory.com
Info Edge Demonetisation is expected to impact the financial performance of India’s internet firms. Leading internet firm Info Edge has also been impacted by the move. Hitesh Oberoi (more) CEO & MD, Info Edge | Demonetisation is expected to impact the financial performance of India’s internet firms. Leading internet firm Info Edge has also been impacted by the move. Its real estate portal 99acres has seen a 40 percent decline in resale traffic but is seeing some recovery now. In an interview with Malini Bhupta Info Edge ’s CEO Hitesh Oberoi talks about the company’s strategy and its intention to acquire start-ups as valuations have improved.
Q: The Street expects demonetisation to impact your quarterly performance as 99acres has been impacted the most. Is that correct? A: Yes, we did see a dip in traffic on 99acres immediately after demonetisation. In fact, resale traffic fell overnight by 40 percent. We have, however, seen a mild recovery in traffic/inquiries in the last few days and are hopeful that things will get back to normal soon. Q: Has Demonetisation impacted sentiment in the job market? Naukri has seen some slowdown in collection growth in the second quarter itself but has it worsened in the December quarter? A: Anecdotally, what I can tell you is that the naukri business especially the SME segment has been impacted due to demonetistaion to some extent. However, by and large our large enterprise accounts were not impacted much. Q: How are consumers behaving online and how has the cash crunch impacted transactions? A: Jeevansathi is the only business where we get a significant chunk of our revenues from consumers. Post-demonetisation consumer payments were hit for around 5-6 weeks. They are now back on track.
Q: What is the percentage of cash transactions for the company and do you see consumers moving to digital forms of payment? A: We don't have significant cash transactions in any of our businesses. Q: Do you see impact of demonetisation to persist in Q4 and FY18? A: Our sense is that things are slowly getting back to normal. Hopefully, every month from now on will be better than the previous month. If the Budget is industry-friendly we expect things to return to normal very quickly. It's difficult to comment right now on what 2018 will be like. Q: Do you see a slowdown in jobs creation thanks to demonetisation and what sectors are worst hit? A: There may have been a slight impact in Q3 especially in the small and medium scale sector. It's difficult to say what will happen going forward.
Q: Do you expect revenues to pick up this year and what is your expectation for the next fiscal? A: The March quarter is normally the best quarter for all our businesses and we are hopeful that it will be the case this year as well. We are hopeful that barring the real estate space any negative impact of demonetization is largely behind us and, therefore, next few quarters will be better. Q: Internet businesses are seeing consolidation as pressures on financial performance increases. What are your challenges in the current environment? A: We believe we are on a pretty good wicket.
The Naukri India business continues to grow well and operating margins in naukri are at an all-time high. Jeevansathi Is now the fastest growing matrimonial site. In fact, it broke even last quarter. In 99acres we were confident of breaking even in the March quarter but this may now get delayed by two or three quarters because of the impact of demonetisation. However, in the long run demonetization should be net positive for 99acres as prices fall and more genuine buyers come into the market as a result. We are sitting on Rs 1200 crores of cash and are in a good position to acquire startups, invest in new companies as valuations correct and raising funds becomes harder in the private market.
Read more for HNI Stock Tips- http://www.aceinvestmentadvisory.com
