Info Edge, the company that owns Naukri, Jeevansathi, 99acres, Shiksha.com, etc, has reported a 28% drop in profits during Q1 FY16 on account of slowing revenue growth of property portal 99acres and increase in marketing spend.
Profits plummeted from Rs 39.8 crore from the same quarter last year to Rs 28.7 crore in the quarter that ended June 30, 2015. Quarter-on-quarter profits were down by 65% from the Rs 82.1 crore profit reported in Q4 FY15.
99acres saw revenues grew by just 12% y-o-y during the quarter while registering a loss of Rs 35 crore. Revenue Growth during the previous quarter was in tune of 33%, with Info Edge crediting the drop in growth to the slowdown in the real estate business in North India.
Despite the slowdown in revenues, Info Edge says it will continue to invest in 99acres. The company spent around Rs 98.43 crore as working capital for 99acres during the quarter, while the portal reported Rs 25.28 crore in revenues.
Info Edge’s other properties did continue to show growth in revenues, with revenues from Naukri growing at about 20% with profit margins hovering above 50%.