Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (2023)
31 slides from Info Edge India's investor presentation, 2023
Slide 1: Info Edge (India) Limited
Info Edge (India) Limited India’s Premier Classified Internet Company
Slide 2: Disclaimer
Disclaimer By attending the meeting/telephonic call where this presentation is made, you agree to be bound by the trailing restrictions regarding the information disclosed in this presentation. This presentation has been prepared by Info Edge (India) Limited (the “Company”) solely for information pu
Slide 3: Info Edge Businesses
Info Edge Businesses Core Operating Businesses. Acquisitions and Strategic Investments Financial Investments
Slide 4: History
History • Naukri.com was launched in 1997. Funded by ICICI Ventures in 2000 • Operating Business profitable since 2002 • Expanded to other India-focused classified verticals -99acres, Shiksha and Jeevansathi (2004-2008) • Public listing in 2006 • First Phase of financial investment (including Zomato
Slide 5: Info Edge – Key strengths
InfoEdge – Key strengths • Naukri.com- market leader in recruitment classified business and cash engine for the company • Core verticals are in the areas of significant life decisions – Education Search and Counselling, Job Search, House Search and Matrimony. It represents India-specific, diverse an
Slide 6: Info Edge – Key strengths
Info Edge – Key strengths • The availability of Indian Tech talent coupled with voluminous data and traffic on the platforms allows us to leverage ML models to improve user experience • Negative working capital, “~zero Debt”, India-centric topline, and a payroll-heavy cost structure hedged due to Na
Slide 7: Operating Business Org Chart
Operating Business Org Chart Hitesh Oberoi Cofounder, CEO and MD. Pawan Goyal Chintan Thakkar Chief Business Officer- Naukri Director and Chief Financial Officer Maneesh Upadhyaya Chief Business Officer- 99acres. Sharmeen Khalid. Chief HR Officer. Rohan Mathur Business Head- Jeevansathi Sumeet Singh
Slide 8: Board of Directors
Board of Directors Whole time Non Executive Independant Kapil Kapoor (58) Sanjeev Bikhchandani (59) Arindham Bhattacharya Aruna Sundarajan (63) Founder and Executive Vice Chairman & Non Executive (61) Diploma in Public Chairman Director B Tech (IIT Kharagpur) , M Sc Administration, ( Univ Of Warwick
Slide 9: High Compounding rate of Returns
High Compounding rate of Returns EPS** (Rs) 52* Market Cap *Rs 13, (Rs Cr) 50,3 Extrapola 50,00 00 % ted Q4. 0 8 1 GR 3 40,0 GR CA 6 00 CA % 2 30,00 29 2 Rs 39, 2 6 7 2 0 20,2 YTD 20,0 2 2 Q3. 59 00 10,1 10,00 45% 3,89 27% 94 19% 26% 0 874 CAGR CAGR CAGR CAGR 8 20 20 20 20 20 FY1 FY1 FY2 FY2 FY2 FY2
Slide 10: Wheel of Value Creation
Wheel of Value Creation 1. Generate Revenue and Cash from core businesses 1 2 2. Strengthening core businesses by M&A/ Strategic investments 3. Long term value creation by investing surplus funds in financial investments 3
Slide 11: Cash from the Recruitment business invested in 99acres & Jeevansathi
Cash from the Recruitment business invested in 99acres & Jeevansathi Recruitment Cash PBT* ~Rs 5,440 Cr Investment in Jeevansathi Rs 458 cr, 8.4% Investment in 99acres Rs 362 cr, 6.6% Balance Cash PBT: Rs 4,620Cr Tax shield of 25%-30% on the cash burn of other businesses inside the standalone entity
Slide 12: Cash Flows and Capital Allocation
Cash Flows and Capital Allocation. Well Defined approach Established Dividend Strong operating towards Financial payout track record. businesses Investments • Formal dividend policy • Strong Operating Cash • AIF structure for eventual of paying 25%-40% of generation year with a and self-sustained st
Slide 13: Naukri.com: India's No.1 Job Site
Cnaukricom India’s No.1 Job Site
Slide 14: The largest business with high margin is growing fastest
The largest business with high margin is growing fastest 1073 987 Rs 268 Cr, Q4 Cash EBITDA 1,600.0 60.0% extrapolat 58.9% ed 1,400.0 58.0% 1,200.0 56.2% 56.0% C % 55.6% R 18 G 54.7% 54.7% 498 Rs 805 A 1,000.0 54.0% 54.0% 470 Cr, 371 Cash 800.0 51.9% 52.0% EBITDA 51.2% 50.6% YTD 600.0 50.0% 279 Dec’
Slide 15: Scale and Growth in Operating Metrics
e and Growth in Operating Metrics 110 86k Unique Customers ( Nos) k Realization per Customer ( Rs ‘000) 93 80 CAGR k CAGR k 9.7% 76 4.9% 72 61 k 66 k 51 k 57 k k k 2014 2016 2018 2020 2022 2014 2016 2018 2020 2022 Registered Job Seekers 82M CV modifications 168.6 ( Nos) n 69M 146.0 Mn CAGR 12% 57Mn
Slide 16: What makes Naukri Moat deep and wide
What makes Naukri Moat deep and wide.
Slide 17: Recruitment Business - Key Strengths
Recruitment Business- Key Strengths • The virtuous circle of Network effect. The scale of operations • Strong brand and significant online recruitment traffic share of over 70% amongst the conventional job boards in India • The large customer base of over 100k paying customer • A diversified portfol
Slide 18: Huge customer base catering to domestic and global demand
Huge customer base catering to domestic and global demand hedges against any economical downturn. IT & IT Non IT Services. Enabled Services: % of Revenue: % of Revenue: 37.2%. 35.6%. No Of No Of customer: Customer:~70k ~25k Service Sector: Service Sector: Manufacturing IT Hardware/ BFSI, Services So
Slide 19: Diversified portfolio of product and services
Diversified portfolio of product and services enabling talent planning, sourcing, branding and recruitment automation • Iimjob.com- Market place for MBA & • Zwayam- Application Professionals Tracking System • Hirist.com- Market Recruitment Alternate Products • Do Select- E Place for Engineers Market
Slide 20: Strong sales and distribution network
Strong sales and distribution network Geographical Spread as on date Chandigarh Delhi NCR (Noida, Nation wide coverage Gurgaon) Jaipur through 69 company Lucknow Kolkata branch offices in 55 Ahmedabad Bhopal Indore Nasik Raipur cities in India Mumbai Aurangabad Bhubaneshwar 1935 sales/ servicing
Slide 21: A Strong Leadership Team
A Strong Leadership Team Pawan Goyal Chief Business Officer and Whole Time Director. (B Tech IIT Kanpur, Phd University of Texas Austin) Avnish DuttPrevious Organization: Adobe Arvind Heda Sales Head – Naukri. CTO – Naukri Masters in Business Administration (B.E (Honours) (Rajasthan Technical ( MBA)
Slide 22: Pronged strategy for business growth
pronged strategy for business growth. Core Naukri Transforming Talent Offering Bouquet of Acquisition New age Tech Recruitment Embracing AI and solutions data-powered (one stop for all automation your hiring Transitioning from needs) No.1 Platform in Search Relevance| Job search to new categories: J
Slide 23: 99acres.com
99acres.com’
Slide 24: Real Estate Marketing landscape
Estate Marketing landscape • Builders and Developers dominate real estate marketing spends across the country. • Real Estate Market subdued due to multiple economic reforms in last decade. However markets now in healthy situation with ~7 quarters of “to-sell” inventory ( lowest in last 4 years). • M
Slide 25: Quarters to Sell
New Homes market is growing with CY22 recording highest sales and launches in last 5 years; Lowest unsold inventory in last 4 years. Launches and Sales Trend Unsold Inventory 12.0 180,000 11.2 10.9 160,000 10.0 10.2 10.1 10.1 10.0 9.3 140,000 8.9 Quarters to Sell 8.0 7.8 120,000 7.2 Number of Units
Slide 26: Housing Affordability continues to be the best in 2.5 decades
Housing Affordability continues to be the best in 2.5 decades Rising incomes & Government support towards housing has helped improve affordability Source: HDFC Limited investor presentation, based on their
Slide 27: New Project marketing is a ~3000 cr market; digital spends growing faster
New Project marketing is a ~3000 cr market; digital spends growing faster • Digital share of spends New Projects marketing @42% (FY23) Total Spend Only Digital spend Rs. ~3,023cr ~Rs 1270cr • Google/FB biggest 100% 50 competitors 90% 80% 1270 509 70% 60% • 99acres share of Digital 50% spends @ 14% 4
Slide 28: Financial Overview
nancial Overview i n A GR % C :18 w th G ro s l li n g y e ar Bi 1 0 t las Billing and Revenue for FY23 projected basis extrapolation of average billing and
Slide 29: Financial Investments
Financial Investments
Slide 30: Financial Investments
Financial Investments Investments through IEIL Investments through AIFs Balance Sheet * Phase 1- 2007-2014 Major Info Edge Venture Fund ** Investments: Phase 2- 2016-2020 Major Investments: Info Edge Capital Fund & Capital 2B ** Around 30 Investments till Market Value of investments in Listed Entiti
Slide 31: Investment Philosophy
Investment Philosophy. • All investments are done/ to be done in Indian startup ecosystem with no sectoral preference. • The investee companies are either tech led or tech enabled and solve for a local problem. • Invest early at Seed/ Pre Series A or Series A stage and prefer to be the first institu