Info Edge (India) Limited (NSE:NAUKRI)

Q4 19/20

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Jun 23, 2020

Ladies and gentlemen, am Vivek Agarwal, moderator for the call today. Good evening and welcome to Inphage India Limited Q4 and Financial Year twenty twenty Results Conference Call. As a reminder, all participants' line will be in listen only mode. There will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. Joining us today from management side, have Mr. Sanjeevich Chandani, Founder and Vice Chairman mister Hitesh Obrai, co op co promoter and managing director and mister Sintant Thakkar, chief financial officer. Before we begin today, I would like to remind you that some of the statements made in today's conference call will be followed and may involve risks and detailed disclaimer. Now I would like to hand over the conference call to Mr. Hitesh Obraai for his opening remarks. Thank you, and over to you, Hitesh. Thank you, Vivek, and good evening, and welcome to our fourth quarter and annual results conference call for '20 for 1920. We hope that you and your families are healthy and safe in these difficult and challenging times. This is the first time we're doing it on Zoom, so hopefully, this will go through without any glitches. You know, like with every other company, the pandemic and the resulting lockdown started impacting our business operations in the March. But the fact that we are a new age digital company helped. We were proactive and moved our entire workforce of over 4,600 people to working from home by the March, a few days before the lockdown was announced in India. And after some starting trouble, things settled down pretty smoothly on this front in all in less than a week. Now all key processes such as billings, collections, vendor payments, payroll servicing payroll servicing customers continue to run effectively in this new work from home environment. Our websites, digital platforms, and customer facing apps have also been running smoothly without any hiccups. And the internal control and financial reporting environment has also been maintained effectively. As a company, we believe the in that the health safety and health of our employees is paramount. Our HR business partners and the facilities team are in constant touch with all our employees to provide support as required. Various webinars are being held to engage and motivate employees and to enable them to stay strong and optimistic in these trying times. And at the same time, our officers are are prepared to be in a ready to move in position as we cons continue to monitor the evolving situation. Once things start improving on the COVID front, we will slowly and steadily get back to working from office like early. As you all know, we operate in multiple categories and businesses. We expect the jobs in real estate business, which are both directly indexed to the economy, to be more impacted due to the various disruptions and the emerging economic situation compared to the matriculation education verticals we are in. In these in in a challenging and uncertain business environment like the one we are in now, we believe in conserving our resources. Accordingly, we have restrained our discretionary spending in areas like marketing, for example. At the same time, however, we are committed to investing in the various levers of our business, which help create value in the long term. This includes key tangible and intangible assets such as brand, people, platform, IP, network effect, technology, innovation, etcetera. You know, our fixed and committed cost for FY '20 were approximately in the range of rupees 600 crores. This includes fixed salary, facilities, and technology running expenses. We are a zero debt company with, a negative working capital cycle in a business as usual environment. We have cash and cash equivalents of approximately US $200,000,000 200,000,000 at the overall IE group level, including our AIF and the soft trust. We are well positioned to fulfill our our existing contractual obligations. Besides this, as you all know, we own sizable investments in various startups, which can potentially be monetized under certain circumstances. Further yesterday, the board of InfoEdge approved an enabling resolution to raise further capital of up to US dollar $250,000,000. That is up to rupees 1,875 crores. This is, of course, subject to shareholder approval. We also believe that in hidden in every crisis are opportunities. We are conscious of the fact that going forward, there could be opportunities to invest more aggressively in some of our core operating businesses, including m and a activities and strategic stakes in emerging startups in adjacent and and related areas. Before I move on to discussing our financial performance for the quarter, I just want to point out that q four is normally our best quarter with the highest billings, and the bulk of these billings are booked in the month of March and that too in the last couple of weeks. Though the impact of the lockdown was contained in the last two weeks of the month, it significantly impacted the quarterly billing for our two large businesses, ninety nine Acres and Knock Creek. Now let me walk you through the quarterly and annual financial performance of the company, post which we will cover each business in more detail. And in the end, we'll be happy to take questions. The audited financial statements file and the data sheet have been uploaded on our website, www.infos.in. Let's discuss the stand stand alone financials first. Billings and this is at the company level. Billings in q four were rupees $3.31.9 crores, down 8% year on year. FY 1920 billings stood at rupees $12.68.7 crores, up 7.8 year on year. Revenue in q four was rupees $3.22.8 crores, up 10.3% year on year. And FY 1920 revenue stood at rupees $12.72.7 crores, up 15.9% year on year. Our operating expenses excluding depreciation for the quarter were rupees $2.26.3 crores, up 12.4% year on year. For FY 1920 as a whole, expenses stood at rupees $8.70 crores, up 14.9% year on year. A major proportion out of the 113 incremental expenses were on marketing and tech enhancements of the platform. Operating EBITDA for q four stood at rupees 96.5 crores versus 91.3 crores last year, an increase of 5.8% year on year. And operating EBITDA readjusted for Ind AS one one six stood at 90.3 crores versus 91.3 crores in q four of FY '19. FY '20 operating EBITDA stood at rupees 402.7 crores, up from rupees 3 or 41.3 crore last year. This was up 18%. FY '20 operating EBITDA readjusted for Ind AS one one six stood at rupees $3.77.4 crores, up by 10.6% compared to last financial year. Operating EBITDA margins readjusted for Ind AS one one six for the quarter stood at 28 versus 31.2% last year. For FY 1920, EBITDA margins readjusted for INT AS one one six stood at 219.7% versus 31.1% last year. And EBITDA adjusted for ESOP noncash charges and INT AS one one six for q four stood at 97.5 crores versus 96.5 crores last year. And FY '20 adjusted EBITDA stood at rupees $4.00 1.7 crores versus $3.65 $3.56.5 crores last year. Adjusted EBITDA margins stood at 30.2% versus 33% last year. For FY '20, adjusted EBITDA margins stood at 31.6% versus 32.5% last year. Deferred sales revenue has reduced to $4.65.6 crores as of thirty first March two thousand twenty versus $4.74.4 crores as of thirty first March two thousand nineteen, a decrease of 2% year on year. The cash balance at the invoice level group level NAIA stands at rupees $15.44 crores as of thirty first March twenty versus rupee 1,550 crores as of thirty first March twenty nineteen. Cash flow from operations stood at 76 crores during the quarter versus $1.31 crores in q four of FY '19 and rupees 302 crores for the year FY twenty nineteen twenty versus $2.96 point $2.96 crores for FY '19. Exceptional items in stand alone financials for q four amounting to rupees 37.2 crores include diminution in wholly owned subsidiaries such as SIHL, rupees 23.8 crores, SmartThub Internet, rupees 3.6 crores, Alltech deals, rupees 14.4 crores, and NewInc, rupees 3.7 crores, reduced by gain in NII, rupees 8.6 crores, which arose primarily on account of impairment in value of investments and associates, joint venture companies, and be and a piece of land we own in Noida. Similarly, exceptional items for FY 20 amounting to rupees $1.23.3 crore include diminution in wholly owned subsidiaries such as s SIHL, rupees 100.7 crores, Smartweb Internet, rupees 15.6 crores, AllCheck deals, rupees 14.4 crores, Meditation, rupees 9.3 crores, New ink New ink, rupees 3.7 crores, reduced by gain and NIHL, rupees 8.6 crores, which arose primarily on account of impairment in value of investments and associates, joint venture companies, and the piece of land in. Moving on to our, you know, some of the key initiatives for the year. We've been investing, as you know, in multiple areas. And during the year, some of these efforts have started making have started making an impact on our business operations. During the year, we pushed the pedal on investment in in the Jeevan Sathi business, especially on the on the on the acquisition front, profile acquisition front, and the IIM Chalk's brand, and this has started showing up in our bidding numbers. We are experimenting with launching some niche and some new marketplaces like JobHair and BigShift. These are biz our business are very, very early, but these could be large opportunities over a ten to fifteen year period. We also invested in a few startups that are strategic to our core operating businesses, like Great HR, an HR sort of payroll and operations provider for small and medium enterprises, Coding Ninjas, which is an elearning business, and TEAL, which is a property analytics and intelligence business. These investments gave us deep insights and learning give us deep insights and learnings in adjacent businesses and the different operating models being experimented in the market. We continue to invest aggressively in areas of, like, technology, product, design, AI, and data science to improve the user experience and develop new products in all our businesses. We have started building a healthy pipeline of innovation, new products, and features, keeping in mind the long term emergence of opportunities in their recruitment and other verticals, and we would, fact, accelerate its pace into FY 2021. Such investments are mostly in the form of people cost and IT infrastructure and hence likely to pass through p and l as incremental operating expenses. Moving to the consolidated financial highlights for the year. At the consolidated level, the net sales of the company stood at rupees 1,311 and 1,311.9 crores versus $11.50.9 crores for the last financial year. For the consolidated entity, at the total comprehensive income level, there is a loss of rupees $2.48.6 crores versus a profit of rupees $5.89.1 crores in the last financial year. Adjusted for the exceptional items, PATS stood at a loss of rupees $4.27.8 crores in FY 1920 versus a loss of rupees 24.4 crores in the last financial year. The aggregate top line of the investing companies in FY 1920 grew to rupees $3.08 $7.7.6 crores versus 2,030 crores in the last year, an increase of 91%. Now let's start now now we'll move, you know, get on with discussing business results by segment, and we'll first take on take the recruitment segment. In q four, in the recruitment business, on account of lockdowns in the last fortnight of of March twenty twenty nineteen twenty, our recruitment segment billings closed at rupees $2.44 crores, down by 6% compared to '19, while revenues were rupees $2.30.6 crores, growth of 11.2% year on year. The operating EBITDA margins in the recruitment segment were 56.9 versus 52.9% in q four f f five nineteen. EBITDA margins readjusted for Ind AS one one six stood at 55.5% versus 52.9% in q four of the last financial year. EBITDA margins readjusted for Ind AS one one six and ESOP noncash charges stood at 57%, up from 54% in q four of last year. For the full year FY 1920, recruitment billings grew 8% to rupees 915.6 crores, while revenue grew for 15.4 to 906.8 crores. EBITDA margins stood at 55.6% compared to 54.7% in f y nineteen. Margins readjusted for India stood at 54.2% in line with margins of f y nineteen at 54.7%. We booked up 14% year on year growth in our billing numbers until Feb twenty. But due to the lockdown, the growth of billing in the last seven days was to the extent of minus 43% year on year, resulting in a degrowth of 6% year on year in q four of FY twenty. The billing for q one twenty one up to May 20 was also short by rupee 69 crores year on year. All sectors of the economy were hit because of the lockdown, somewhat impacted more than others. Manufacturing, construction, auto, travel, hospitality, retail were more impacted, than IT, health care, and pharma. SMEs were impacted more than large businesses. In Nocree, in q q four f of of FY twenty, we added an average of 13,000 fresh CVs every day, and the Nocree database grew to about 69,000,000 CVs. Average CV modifications were at 415,000 per day in q four. Our traffic share in the job portal space continues to be in the nineties. We are speeding up our our product investments in in in RMS, the recruitment management system, as automation and technology will play a critical role in work from home, remote collaboration, high productivity expectations post COVID. We also recently launched our Nocri Fast Forward transition services as a product offering to companies who are laying off people and want to help them with their career transition. Nocri.com has also launched a step up initiative to support job seekers who have lost their jobs in the pandemic. Support has also been provided to various customers. We are prioritizing access and discovery of recently laid off and immediately available to join job seeker by recruiters to facilitate their hiring during the time this time of crisis. The step up microsite also provides a live track tracker highlighting active jobs from companies and industries that are currently hiring as well as a host of resources around hiring insights, webinars with industry experts, upskilling courses, and curated content on work from home productivity, job search, resume interview preparation tips, etcetera. We have an update on iimjobs.com as well. IIM Jobs reported a revenue of rupees 21.8 crores for FY 1920. The business has been growing at 20% plus for the last three financial years. We successfully integrated the the sales team of Nokri and I'm jobs in q four, and we're on track to deliver a record sort of quarter for I'm jobs till COVID hit us in in March. But on all in all, we are hopeful that this integration will pay off in the long run for both IIM. On to the other verticals. In nineteen ninety acres, the real starting in nineteen ninety acres, as stated earlier in the call, the real estate segment has been impacted by the long period of lockdown. And, accordingly, the billings in q four degrew by 24% y o y to rupees 50.7 crores, down from rupees 66.7 crores. This was largely due to the impact of lockdown in the month of March. Revenue for the quarter grew 3.6% year on year to rupees 56.4 crores, up from rupees 54.4 crores. For FY 1920, billing and revenue grew by 3.518.8% to rupees 213.9 crores and rupees 228 crores, respectively. Q four EBITDA stood at rupees 2.2 crores against a loss of rupees 2.9 crores last year. Q four EBITDA readjusted for India's 116 stood at 0.3 crores compared to a loss of rupees 2.9 crore last year. EBITDA for f y twenty stood at rupees 8.4 crores against full year loss of rupees 22 crores booked for the last financial year. And EBITDA readjusted for India's one one six impact stood at rupees 88 lakhs. For q four, adjusted EBITDA adjusted for ESOP expenses and Ind AS one one six impact 200 rupees 1.8 crores versus a loss of rupees 2.2 crore last year. And for FY 1920 as a whole, adjusted EBITDA adjusted for ESOP expenses and in the AS one one six impact stood at rupees 5.17 crores versus a loss of rupees 19.56 crores last year. You know, the key business highlights on 1990 because all business verticals of new home, resale, and rental were impacted in q four due to the lockdown in March. In FY twenty, resale and rental businesses grew slightly faster than the new homes business in the year. The number of broker clients grew at a healthy rate, 15% year on year. Broker billings formed 53% of the overall billings in f I nineteen twenty, while builder billings stood at 41% of the billings. Owner billings contributed to about 6% of the overall billings for the business. We continue to experience we continue to experience the growth of owner listings and broker listings on the platform, making the platform more comprehensive and vibrant in q four. Traffic growth slowed to single digits in q four due to the lockdown in the month of March compared to mid teens growth in Jan and Feb. And brand, which is our top of mind share versus our nearest competitor, MB, continue to be stable at the 56 to 57% levels in q four in spite of TV spends like competition. The extended lockdown has worsened the sentiment in the industry, which is already feeling under the liquidity issues prior to March, and buyer demand is likely to remain muted, in both the new home and resale segments for the next three to six months. Billing for q one twenty one up to May has declined by 20 crores year on year. However, we are seeing some revival of traffic and demand on our platforms as a lockdown restrictions are being eased in various parts of the country. Emerging markets have been the first to bounce back. Track traffic is also slowly bouncing back in places like Bangalore. Markets like Mumbai, Pune, and Delhi continue to be impacted because of the lockdown and because of the rising number of COVID cases in these cities. We continue to invest aggressively on improving our core platform experience in this downturn in all our business verticals to come out stronger post the downturn. We're also looking to take appropriate measures to reduce operating costs of the business without impacting our platform experience or client experiences given the slowdown. Moving on to the matrimony business or the Zivinthati business. Billings for quarter four stood at rupees 23.8 crores, and year on year growth of 20.4% on 19.8 crores for '19. FY '20 billing grew by 18.4% year on year to rupees 87 crores from rupees 73.5 crores in FY '19, and revenue grew to $80.84.7 crores from 72.3 crores in FY '19, an increase of 17%. Aggressive marketing spends during the quarter along with improved realizations helped higher sales growth in the year. We are thus looking to consolidate our position as we penetrate deeper into our core markets. We plan to spend considerably more on marketing across all our core markets as we move into FY 2020 FY '21 to strengthen our brand presence and increase our profile acquisition rates. Aggressive marketing spends during the year along led to an operating EBITDA loss of rupees 63.2 crores for FY '20. This was an increase from the 33.8 crore loss we booked in '9 FY '19. Losses in q four FY '20 stood at rupees 18.8 crores compared to the loss of rupees 5.9 crores in q four of FY EBITDA we adjusted for in AS one one six and ESOP expenses stood at a loss of rupees 19.2 crores for q four of FY '20 versus a loss of 5.6 crores for q For f y twenty, operating loss adjusted for in the AS one one six and of ease of expenses stood at rupees 64 $60.65 crores versus rupees 33.22 crores in f y nineteen. Moving on to the education vertical, Shiksha. We made significant traffic share gains during the quarter in Shiksha. Shiksha continues to gain traffic share despite hyper competition from different players in this segment. In q four, billings de de grew by 8.5% year on year to rupees 13.4 crores from rupees 14.6 crores reported in q four of FY nineteen, while revenue grew 2.8% year on year, and reached rupees 13.2 crores. FY twenty billings and revenue grew 5.810.8% respectively, and stood at rupees 52.1 crores and rupees 53.3 crores. Q four, we made an operating loss of rupees 1.5 crores against a profit of rupees 60 lakhs in '19. EBITDA adjust readjusted for Ind AS one one six to write a loss of rupees 2 crores. FY '20 operating profit for six years stood at rupees 1.2 crores versus a profit of rupees 90 lakhs in FY '19. EBITDA, we adjusted for India's one one six stood at a loss of rupees 90 lakhs. And adjusted EBITDA for India's one one six, and ESOP charges loss for the quarter stood at, rupees 1.4 crores against a profit of rupees 90 lakhs in the last financial year. Adjusted EBITDA for India is one one six, and ease of charges for f five twenty stood at rupees 86 lakhs, down from 1.9 crore last year. We continue to invest in making content comprehensive and more student friendly and invest and and we are and continue to invest in building deep domain expertise in this vertical. This will help us in generating more response for our users going forward. Moving on to our strategic investments. COVID nineteen and the insuring and the ensuing lockdowns had a significant impact on the operations of our investee companies like Zomato, Shop Kirana, Gramophone. Shop Kirana had a temporary dislocation but has since bounced back. Tomato has faced disruption but is now bouncing back on top line and has also reduced its burn considerably. It has suction money and has some inbound investor interest as well. Gramophone has faced an initial dislocation but has since bounced back. PolicyBazaar, on the other hand, continues to benefit from the growing digital penetration. This is also helping them to improve the overall profitability of the business. However, PesaBazaar has been impacted by moratorium extensions. They are exploring expanding business into nonlending categories. They have reduced their headcount substantially to meet their profitability targets of the year for the year. During the quarter, we also announced the launch of category two, Sevii approved alternate investment fund, the InfoEdge Venture Fund. Since launch, we have already made four investments in Qunky, Dotpay, Fanclash, and through to the fund. We also did follow on rounds in our some of our earlier investing companies, MedCort and Univert IT in '20. And we continue to evaluate new investment opportunities in the light of changes brought in by COVID nineteen. That's all from me today. Thank you. And now we are ready to take any questions that you may have. Vivek, are you on the call, or you are logged out? Anand, you can hear me? Anand, you are on mute. Anand, you are on mute. Yeah. So question queue is building up. We'll start taking questions one by one. So the first question is from Ritesh Bhagwati. Ritesh, please go ahead and ask your question. Hi. Thanks for the opportunity. My first question pertains to core business. So how do we see our Q1 and Q2 business shaping like given the current situation in the economy? If you can roughly quantify, like, on y o y basis. Like, will it be, like, 40% down, or can we expect, like, mid teens, like, on a ballpark basis? So that's my first question. And secondly, my second question pertains to our investments portfolio. So during the quarter during this quarter, basically, have you done any write offs, or are there any write offs in current or upcoming quarter? So these are my questions. Thank you. Yeah. So q one, you know, has been terribly impacted by the lockdown. You know, for most of April and and May, May was shut for business. And that's even now, sort of things are opening up slowly. So we saw our, you know, traffic dip by almost 80% in the in the month of April in both in 99 acres, sixty, seventy percent dip in in. Traffic has since then started recovering. We are back to, you know, minus 20%, minus 15% levels in both and 99 acres. In emerging markets, we are seeing growth as well. In Jeevan Sathi, we Jeevan Sathi has been no impact. I mean, traffic has been growing, and revenues have been growing even through the through the lockdown. It's a digital good. It was not impacted at all. Shiksha, what's happened is that the education season, you know, the admission season has got delayed by by three to four months, so that's impacting our spend in in in that category. But, hopefully, you know, business will come back in Shiksha sooner than later as colleges start opening up. But in jobs and real estate, there are two big verticals. Revenue growth is is is gonna take revenue will follow with a lag. You know? So traffic has started bouncing back. Like I said, we are down to we are down minus 15, minus 20 from where we were before the lockdown and from the same time last year. But revenue will take some time to come back. In the month of April, for example, our jobs week index was down 60%. In in the month of May, also, it was down 60%. So, you know, right now, chances are that Nokri the Nokri business will will the Nokri and the Apple business will will de grow in terms of billings by more than by close to 50% in the quarter. In 99 acres, you know, we saw our billings dip decline by 86% in the month of April. We saw a 72% decline in the month of May. June will be hopefully better. But, again, you know, it's not as if business is going to back immediately once the market starts to open up. So q one will be quite bad. Q two, very hard to say because a lot will depend on how much India opens up. Chennai, for example, opened up, but there was a second lockdown. Suddenly, now there's a second lockdown and things are shut again. If in Delhi and Bombay, it's a wait and watch situation. Let's see what happens. All chances are that things will open up. But but if the number of COVID cases go through the roof, you know, who knows? The government may sort of lock down things once again or may slow the pace at which things are opening up. So q two is very hard to say what will happen. Fingers crossed. Q one, of course, has been terribly impacted. And on the investments Yes. So revenues may look a little different because, you know, there's some deferred revenues to come in q one. What I was discuss what I was talking about are billings. And my question pertaining to investments portfolio, like, have you taken any write offs, or are we gonna take any write offs in current or coming quarter? Chetan, you wanna take that? Or Yeah. Chetan, you wanna answer it? Yeah. There are some small write offs that have happened, and that may may have happened to our subsidiary companies, but ultimately would have impacted our stand alone financial results as well. Nothing, you know, really, you know, as a major item. There are three or four companies. There are three companies that we have kind of completely written off, and there's one small company that we have taken a part to know kind of a write off. These are all the companies which we had invested at least two or three years back. There's nothing which is often, you know, of a near future that we invested that we have written it off. We also have written off a little bit of you know, there's a piece of land that we have in Moira. And, obviously, you know, some of the evaluations would have changed in the recent events. So so we have kind of taken a little bit hit over there as well. But other than that, there is nothing significant, but we are evaluating and we are assessing the situation as we go. And if there is anything that's happening in this quarter and next quarter, we'll we'll constantly look at what the projections are. We'll look at the evaluation reports. And if there is, you know, you know, any requirement for write off, then we would take this kind of provisional write offs. Last question if I can squeeze in. Like, we have a good cash and equivalents on our balance sheet. What is the reason for raising QIP of 1,800 crores? You want me to go first? It's it's time you can and, Salil, you can come. So so, you know, we continue to sort of, like I said, see, you know, opportunities and invest in all our verticals. We have been there are some the the operating business that we run inside the company, we see some opportunities to, you know, aggressively invest in them once the market starts to recover. Two, you know, we continue to make sort of investments in some strategic sort of start ups. In the last few months alone, we've invested in coding ninja, Teal. You know, we we did UniRiG before that. So so great HR. So so these are some adjacent areas where we see a long term opportunity. We continue to invest in these areas. Inside the company, like I mentioned, we're also sort of piloting BigShift and and blue collar blue collar job. Or very, very early very, very early pre revenue, test marketing in one or two cities right now. But, you know, if if these businesses show potential, then we would like to scale them up also at at at the at an appropriate time. And we're also conscious of the fact, like I said in in my, you know, talk earlier, that, you know, there could be a crisis sort of in every crisis, there are opportunities. So who knows? There could be some m and a opportunities that come our way in in the sort of months and quarters to come. And if if there are such opportunities, we would like to be ready to grab them as when they come our way. So so that's really the reason more than anything else. Shinta? You wanna add in? Yeah. I just wanna clarify that this is an enabling kind of a resolution that we have taken from the board. So it it says that it is up to whatever 1,800 and odd figure that we will raise. It's not necessarily that we are going to raise the entire amount. You know, we will see as we go. And I believe that, you know, this resolution, once shareholders approve, will remain valid for a year. So we'll look into it, you know, once we get the approval. You know, having said both these things, you know, what we do believe in this changed environment, post COVID, I think the funding environment has changed. I think with, you know, Chinese investments being constrained, I do believe we will get enough inorganic opportunities to expand. And if we see a good one, we'd like to be prepared and ready for it. We we are expecting some of this in in the months ahead. Next question is from Mukul Ghar, Wheaton Securities. Mukul, go ahead and ask your question. Mukul, you are there? Mukul, are you on mute by any chance, I mean? Okay. We'll take the next I think he was on mute. He was on mute. Yes, Mukul? Yeah. Sorry. Uh-huh. So I think, you know, Sanjeev, I would probably follow-up with the first question on the QIP. You know, while while we understand that this is an enabling resolution, you know, if you look historically, you generally don't do late stage investments and, you know, in areas where which are very unrelated to what you guys are doing. And the the amount which for which you guys are kind of taking the approval is meaningfully large with very few outlets, you know, where you can kind of expense it out. So is it possible to kind of give some color on areas where you see opportunities and, you know, where you think this kind of cash can be invested? So first of all, you know, this is not for investments or minority stakes. I mean, this kind of raise will if it's used, will be probably be used for acquisitions, right, or at least minority stakes. Right? Now the way we look at it is we look at it in concentric circles. Right? The first concentric circle is that we got to do stuff in the four verticals where we already operate business, which is jobs, real estate, matrimony, and education classifieds. Now these now here, we're take make we call these strategic investments because they are in the four verticals where we already operate adjacencies or even possibly acquisitions. Right? The second concentric circle is going to be, you know, do we want to diversify into a fifth vertical and make an acquisition there? Now that is a bigger decision and it is less likely to happen because we these are businesses that we run ourselves. Right? And we have to be clear we can run it before we acquire something there. Right? And the third will be stuff we wanna do, which is not in the four verticals that we are in or not even in classifieds maybe. And those are financial investments usually, and they will be through the AIF. But the AIF, we're not raising money from the AIF. We are raising money mostly for the concentric circle, number one. Are we gonna get good you know, acquire meaningful businesses the four verticals that we operate in? Sanjeev, just to follow-up on this, the first concerted circle which you mentioned, and I, you know, I I think that's the point I was trying to ask. If you look at the opportunities to acquire businesses there, most of the potentials out there are are relatively smaller compared to the amount of money which you are trying to raise. So do you think it is you know, you guys will be able to do multiple transactions if the opportunity comes up? Do you have the bandwidth to do it, or would you like to focus on just one at a time? Well so bandwidth is something we keep on discussing. Certainly, we'll not do three at the same time. I think one at a time makes sense. But, you know, you may be surprised by what opportunities there are out there or or can emerge over the next six to nine months. Because when when money dries up when money dries up, you know, suddenly, you know, we have less competition, and we are able to then look at acquisitions in a a more serious manner. Got it. And the second question is for Hitesh. Hitesh, can you help us with the marketing, you know, expenditure on the Nokri during this quarter? And second, on the p and l levers on the cost side, which you might have for, you know, fiscal year twenty one, given that our top line will remain constrained, do you think it is possible to keep the fixed cost stable at at current levels, or do you expect them to increase given that you're still kind of investing in in your team? Yeah. So, you know, we've substantially brought down our marketing spend in both 99 Acres and Okri in q one. We have, in fact, opted in Jeevan Sathi because we are seeing we're still growing in that vertical. But in both Nigerian Acres and North Creek, we brought it down substantially over last year. Like I said, you know, it's you know, if we were traffic was also see severely impacted in the first two months of the quarter because of the lockdown. And now traffic is slowly bouncing back, but not because we are marketing, but because, you know, we we have we have a sort of people are coming back into the market. At least job seekers are coming back into the market. Buyers are coming back into the market for real estate slowly and steadily. But we don't want to advertise in a hurry till the situation stabilizes. So when both 99 acres and Nocree, our Ashland in q one is substantially lower than last year or even q four for that matter. In Siemensati, we'll continue to sort of invest aggressively. As far as our other costs go, we are not expanding our workforce. So, you know, at the but but we're not laying off people right now either nor have we announced any cut in salary. What we have done is we have frozen salaries. We are we are not announcing incremental now this year. And, you know but it's not as if we have said no to not to doing it to for the year as well. You know, if the situation improves in the coming months, and then, you know, we will re revisit our sort of decision on on this front. Strategic hires, you know, sort of if there's some important positions which you would like to fill, and the slowdowns are actually a good time to hire people. So so the the good the important positions which have been sort of open for a while, we would like the opportunity to fill them during the slowdown. But that's not a subs that's not a that's not a substantial cost. The numbers the workforce numbers will you know, we have some campus offer hires sort of an offers we made which we will honor over the next few months. But, otherwise, we're not even replacing the people who are leaving right now. Got it. And just to follow-up on that, especially in the business, you know, given that the condition of q one and early q two, you know, in the hypothetical scenario, if if NOCRI sees a a decline in top line for the full year, do you think you will be able to maintain the profitability in the business? Or, you know, based on your past experience, how much of it cut in margins can, you know, happen? What what do you you know, what are your rough numbers indicate? Is it you're on mute? Yes. You're on mute. You're on mute. Yeah. Sorry. Very hard to say what's gonna happen, you know, this year. You know, it's a very uncertain sort of situation. You know, if business if billings fall by five, ten, 15%, you know, year on year, you know, we can still sort of maintain margins. But if we see a drop of thirty, forty, 50% this year over last year, it's gonna be very, very hard to maintain margin. I mean, you know, even if we cut down all all our discretionary expenditure. So a lot will depend on how things play out over the next few quarters. Q one, of course, like I said, is is over, and we know what what happened in q one. And, you know, we are hoping that every subsequent quarter will be better than the previous quarter. And and if we get back to sort of base, you know, at least by q four, I think we'll be happy. But very, very hard to say how things are gonna play out in in the next few months. Like I mentioned to you, you know, what we are seeing at least in in the real estate business, and this may be true for India as a whole, is that the emerging markets or the smaller cities are bouncing back faster. The markets in the South are bouncing back, like Bangalore and and Hyderabad are bouncing back faster. But markets like Bangalore sorry. Bank markets like Mumbai, Pune, Delhi, which are seeing a lot of COVID cases are still very, very impacted. Now if these markets bounce back faster, then, of course, you know, we'll be on a good wicket in the second half of the year. But if it takes a few more months for the, you know, the COVID situation to stabilize, then, you know, we don't know it's gonna play out. Okay. The next question is from Vivek from Ambit. Yeah. Hi. Thank you very much for the opportunity. First question is on on the category of real estate. So we know we we actually shared one one subsegment of the business, Alltech Deals, a few years back. And and given the opening commentary on opportunities that could emerge in the strategic businesses, could you talk about the real estate category? Do you think that there are new opportunities emerging there? And and and, you know, how do you expand the addressable market there? We've seen that the fixed costs of the business have grown over a period of time, but monetization hasn't caught up. So how should we think about the category, and and are there any strategic opportunities there? That's question one. I'll ask the others after this answer. Yeah. So real estate, you know, at a very macro level is a very vast category. You know, I think in any country, maybe 12% of GDP is basically real estate. You know, what has unfortunately happened in India over the last few years is that real estate sector has been through a terrible slump. And, you know, that has been compounded by stuff like GST, RERA, you know, demonetization, the MBSE crisis, and now, of course, COVID and the lockdown. In fact, the lockdown hurt the most in April and May because, you know, how how can you how do you buy a house without even visiting it? How do you rent a house without visiting it? So, you know, almost all activity came to a halt for a couple of months. Long term, of course, the you know, there's a lot of opportunity in real estate. You know, it's not as if all the advertising spend has moved online. Only a fraction of the spend of the ad spend in real estate is is is on portals. There is enough money being spent on Facebook and Google as well, which we think can migrate to online portals over a period of time, number one. Number two, you know, with real estate, you know, the online portals today, companies like ours, portals like ours, and Magic Rigs, mostly operate in the buy sort of segment. So we play a little bit in new homes. We play a little bit in resale. Entire segments like rental, for example, we don't really have a big play in. Segments like commercial or real estate, we don't really have a big play in. Over time, you know, as we get more and more data on our platforms, they could be placed as possible in real estate sort of information services. Right? But, you know, unfortunately, the sector has been through so much that all the companies in the sector, the builders and their developers and the brokers have been very, very badly hit for the last few years. Many of them have shut down shop. Many of them have restructured. Many of them are short of capital. Many of them have you know, you know, they're struggling. And and we are hoping and waiting for the market to stabilize a bit because, I mean, once you have a stable market is when people start investing more. Even buyers sort of quit the market a few years ago because of all these investors and buyers quit the market for these very reasons. Registered India was expensive. It's unaffordable. Projects were delayed. You know, a lot of people lost a lot of money. And, you know, the quality of real estate was also not great. Interest rates were high. But, what we're seeing now is that, one, you know, interest rates have started falling. Real estate is because prices haven't gone up for the last ten years and become more affordable than it was, you know, five years ago or seven years ago. RERA has brought some stability into the market. Builders are consolidating. The ones who are left are sort of, you know, are more sort of, you know, cap you know, are sufficiently sort of capitalized and so on. So, you know, our sense is that the real estate sector may start slowly start bouncing back back bouncing back. So and, you know, real estate is deeply cyclical. So the cycles are long, and we've been through a terrible cycle for the last few years. And, hopefully, you know, once things stabilize, we will be in an up cycle for the next few years. And once that happens, you know, buyer interest will be back. New projects will get launched. You know, real estate spending will go up. And, hopefully, by then, the portals would have also established themselves well, and they'll be able to capitalize on on on the surge in demand for real estate. So that's the long term sort of view. In in the short term, you know, it's the business rate is is impacted, like I said, especially in markets like Bombay and Delhi and Pune, which are almost which are just still short for business. Okay. The second question is on the work from home and business continuity plan. You mentioned that you you were quite fast in adapting to this. And and secondly, we've also seen that businesses seem to be more willing to renew or invest in mission critical services like connectivity. Does do you think this applies to your business also? You know, for example, companies being very dependent on the the database product. And and does that have any implication on the number of accounts that your current salespeople can service or possibly, you know, give you opportunities to retool some of these sales staff to other projects or improve productivity? And and maybe thoughts on hiring also in this new work from home world for your own business. Yeah. So it's early days. Right? It's difficult to say, of course, all of us have been reading about various articles in various publications about how the new world could be different. Now, see, as far as our business is concerned, see, we are mission critical if company want to hire. If companies don't want to hire, we are not sort of essential. You know, what tends to happen in a slowdown like this is that attrition rates fall and companies postpone sort of hiring plans, and that's why business has been hit. But once the market sort of starts to open up once again, I think, you know, attrition rates will start going up. Job seekers will look for new opportunities, and companies will start expanding and start hiring and and start sort of spending on new projects. And that's when hiring will go through the roof once again, and we become we become more critical, which is why in a in a slowdown like this of of the nature we're seeing right now, the database product, most companies continue to use because it's the most sort of essential application for them when it comes to hiring. But products you know, our branding products, for example, you know, take a hit because, you know, it's not as a com building a a job seeker brand is important to companies that's, you know, in in at at this point in time. So once the market bounces back, we'll come back, hopefully, and come back stronger. In 02/1989, we saw a 25% decline in in for about three in the subsequent year, we saw 45% growth in billings because, you know, once companies started hiring again, business came back fast. Now I don't know how this pandemic or this sort of crisis pan out, but that is what happened in 02/2008, 02/2009, 02/2010. To your other question on sort of was it around work from home and what do think is gonna happen? I think for your own business, how do you look at productivity of your own sales staff and and does work from home have any implications on your future tech hiring also given that you no longer have any NCR constraint possibly? Yeah. So, you know, like I said, we were able to successfully migrate 4,600 people to working from home almost overnight, and it's now been almost three months. And when we when I talk to people in the various sort of verticals we have, what I hear from them is that the product and tech and, you know, data science and UX guys are saying, listen. We are probably even more productive than you were when you were in office. So, you know, as far as they are concerned of course, in this office, they miss, you know, the benefits of working together. But they're they're saying that at least they're, they're they're claiming to be more productive than they were, you know, while they were when they used to work from office. You know? But, you know, not all sort of we have all kinds of people in the company. There are, for example, lot of people in telesales and operations. Now many of these people don't have access to the best connectivity, you know, in their at their home. Many of them don't have big houses, so they're forced to operate out of small rooms. So there, I I I suspect, you know, productivity has been hit to the extent of five to 10%, and this is a large part of our workforce. And then we have the field salespeople. Now the field salespeople, you know, love going out and meeting customers. So for them to sit at home and make Zoom calls is is maybe not what they love to do, but they're being fast to adapt to how how how the scene has changed. And and, clearly, you know, there are some long term opportunities there because if this becomes a new normal I mean, like, sitting today, you know, we have you know, like, on our previous investor calls on on analyst calls, you know, we used to have maybe 100 analysts. Today, we have more than 300 analysts, people sitting everywhere are able to log in. This experience is far better than the experience maybe on on the voice sort of system. Similarly, in in when it comes to making sales calls, you know, previously, for example, if I wanted to meet a customer in Bangalore, you know, I would think twice and, you know, thrice about traveling to Bangalore for one meeting, or a sales head would think twice about going to Bangalore for one meeting. Today, sitting in Delhi, you can talk to virtually any customer anywhere on on Zoom and have a very productive meeting. And, you know, what would have otherwise taken two days can now be done in maybe two hours. Right? So there are long term sort of implications of this, and now a lot will depend on how fast how long this crisis lasts. You know, if things come back in a hurry, then, you know, people have a very short memory. They may go back to working like they used to work earlier. Or on the other hand, if this crisis continues for a while, we'd all be forced to innovate in in terms of the way we work. We're already training, for example, our sales team on how to make Zoom calls, how to present through Zoom, how to conduct client meetings, how to engage more sort of on on on Zoom meetings and so on and so forth. Clearly, you know, if the Zoom calls become the new normal, then you don't need branch offices everywhere. You can pretty much operate from anywhere and and, you know, make calls on customers. Hiding also could, in many ways, become both more local and more global at the same time. Global because, you know, today and for so many years, we thought of opening an office in Bangalore to hire, to set up a second development center. We've never done But today, you know, we don't mind hiring sort of a lot of people in Bangalore and making them work out of Bangalore because we've got used to the idea of working from home. At the same time, the low end jobs will become more local because, you know, if this COVID sort of thing continues for a long time, people may not want to commute for long, to get to their place of work. So, in the jobs which don't pay a lot, people would rather hire even more locally than they do today. Right? So many things could change, but a lot will depend on, how long this crisis lasts in my view. That was very useful. Thanks a lot. All the best. Thanks, Vivek. So the next question is from Kunal Sangoyi. Please go ahead and ask your question. Yeah. Thanks. Hi, Sanjee. Hi, Hitesh. My question is with regards to, you know, the in house vertical, education vertical. So, you know, what you know, there is always a change in the new change environment. Basically, do you see you know, what kind of opportunity do you see, you know, this within this vertical that, you know, currently would present? There is always a trigger for the change. Do you think the current crisis presents some acceleration? Or in terms of the product investments, what do you think would be the adjacencies that we would like to expand into over here? Yeah. So so, you know, the education vertical has a you know, we see a lot of opportunity in the long run. If there are two sectors that benefited because of COVID, you know, they are ed tech and health tech, as you all know. So so inside the company, we continue to sort of focus on our Shiksha business, which is like a marketplace for, you know, discovering and colleges and courses. Now, of course, what is likely to happen going forward is that online courses will also become very, very big. You know, all our service are showing that job seekers in this pandemic are spending a lot of time and money in upscaling themselves and by doing courses online. So inside the company, we are actually working on, you know, a Shiksha type of platform for online courses as well. You know? So so that's the next thing on as far as Shiksha's or or the education business is concerned. A lot of engineers are also going overseas for education. And, of course, you know, things keep changing. And but but the general trend is that more and more people go overseas every year for education. We've also started sort of building a small study abroad business in shikha.com where we are playing the role of an online counselor, and everything's being done online. So we are using technology to sort of counsel and coach people and, you know, get them to apply to colleges and universities overseas. It's a very tiny sort of business. Again, baby steps, but that's something we are sort of doing right now inside the company. Outside, as you know, we have made a lot of strategic investments in a lot of education businesses. No paper forms. They're looking at how to, you know you know, the billing software for colleges and universities to make them paperless, to make the admission proper process paperless. They have univer IT. They're focused more on schools, the careers counseling and coaching and careers, you know, but you know, through an alumni sort of stuff through through the school network. And then we we just invested in coding ninja as well, which is, you know, IT sort of courses online, you know, teaching free stuff to to, you know, students and working professionals. So so so let's see how this evolves. It's very, very early. We are sort of still figuring things out. Internally, like I said, we are focused on more discovery and, you know, study abroad and courses and colleges and, you know, counseling and stuff like that. Outside, we are we sort of, you know, investing in sort of more sort of areas which have to do with education as well. Sure. Second question is with regards to the, you know, QIP potentially. So, Sandeep, you did mention, you know, the restriction because of the Chinese investment probably. There could be opportunity. Would that also include, you know, depending our percentage stake in some of the investing companies also? Would that be a major percentage? Sandeep, you're on mute. You're on mute. Sorry. So two big ones, Zamato and Palazzo, they both are well funded enough, and they've got enough investor interest. We are unlikely to be required or called to invest there. The others, you know, we will take on case by case basis and the ones that but we don't need to do QIP for that. It's not large sums of money. Right? The QIP is because we sense strategic opportunities with emerge over the next six to nine months. So we want to be ready to raise as soon as we you know, whenever we want to. Sure. Great. Thank you so much. Yeah. Thanks, Poonal. Next question is from Salil Desai. Please go ahead and ask your question. Thank you. Sir, two questions. One is on on 99 Acres. We've seen market traffic share, rather, dip through the whole of last year and almost up to May 2020. Now the the overall market is bad is one thing, but how do you view market share in defense in this? You know, a lot of these changes that you see market share are because of are often because of the changes in changes in the way similar web So if, you know, periodically, they revise the algorithms, and the data starts looking very different. You know, if we look at brand share, which is searches on Google for our brand name versus, let's say, our closest competitors, then, you know, we have been averaging 55 to 6%. I do agree that we lost a few percentage points in the last three, four, five months because we were not aggressive on the advertising front, and our competition is very aggressive. Both housing and MagicBoost are very aggressive on the last for the last three, four months on advertising. Since then, they've cut back on on that spend, And we are hoping now that they've cut back on advertising spend. You know, our share will come back. These gains of three, four, five these sort of changes of 5%, we can get back anytime when we start advertising. So I will not worry too much about I will not read too much into them. Alright. And secondly, one clarification. You're saying Zomato has sufficient interest from investors, I mean, who are not currently in the state. So then even Oh, it's both. Got interest from both internal investors and from external investors. Okay. So if there are restrictions on internal investments, investors upping their stakes, you'll have opportunities from external also. Right? That's Yeah. But I'm I'm not talking about I'm talking about internal investors who don't have restrictions also. Okay. Great. Thank you very much. Yeah. The next question is from Sagar Dhawan. Please go ahead and ask your question. Sagar, you are Sagar, you are there? Sagar is on mute. So may I just give you an add on, sorry, to the last answer I gave? So look. What people what overseas investors, especially investors are seeing in Zomato is that delivery has really picked up post COVID. In India, there were logistical issues, you know, where delivery boys went on out of travel restaurants and still many of them are still shut. But once those are over, you know, delivery, I mean, they expect it to be a big, big, big business. Now that's what people are saying, but we don't know, right, until it happens. And that could be different, realistically. Having said that, this is a some investors I have. Thank you. Thank you, Sanjeev. Sagar, you are there? Please go to the next question. So while Sagar is able to connect back, we move to the next question. Next question is from Abhishek Jain. Please go ahead and ask your question. I think Abhishek is also on mute. Abhishek, could you hear us? Abhishek is on mute. Sagar is on mute. Okay. We move to next question then. Abhishek is back. Let's go ahead. Abhishek is back. Yeah. But can you ask a question, Abhishek? Yeah. I have two questions. First question is now we are seeing NRI is coming up with its own delivery platform. I have read a newspaper. What kind of competition do you see in the from NRI coming up with own platform, first thing? Second question, what kind of volumes you have seen in in current quarter? What in last three months, if you should throw some light on, especially on the Zomato platform? And third question, what is the liquor? Because now the liquor business is we have got the platform in there right now. Liquor may what kind of opportunity we are seeing, sir? Because now tomato and other plates are also coming. So look. Zomato is focusing on food delivery from restaurants and cloud kitchens. They did do groceries for a while, and then they, you know, stopped after the the crisis was over. They were trying to help out. Liquor hasn't really been done yet. And liquor On the contrary, it's a tricky business given the nature of the business. But but but, you know, we will we'll deal with that as a matter. It shouldn't happen. It's highly regulated, requires government clearances. It's got a a different kind of distribution and and trade. So we don't know what will happen there. But really, it is a food delivery company, right, food from restaurants and club kitchens. There has been there was immediately substantial hit because restaurants were closed. Delivery was not allowed to travel out. Some delivery was gone home to their hometowns. Now as restaurants come back and enough of them come back, there has been a bit of a bounce back. It's still way below, you know, what it was, let's say, a year ago or what it was in February, not a year ago, what it was in February. Having said that, you know, the burn is substantially down. And that, you know, people are moving to a better unit economics model. People, you know, discounts are less. And we are making a positive money above after having all variable costs on each order, right? Now specific numbers, the company has not disclosed to the public, so we can't give it to you here. But the companies are hoping is two, three, four months every month, it will come back more and more. Of course, if COVID will come back, a strong comeback, you know, then there might be some stop start. But right now, it's been coming back steady. And what what is your view on the NRI coming up its own? We have yet to see what that effort will be, but it's it's gonna be kinda hard to have, you know, 10 or 20 health restaurants collaborate, you know, or or for the for delivery platforms owned by NRI. NRI industry association. I mean and and they're allies of Samato, and that tomato depends on them. They've been on tomato, all these restaurants, their restaurant partners. Having said that, what they will be able to do with their own delivery platform remains to be seen. I'm a little, skeptical. Sir, have you paid larger amount, larger, incentives or salaries to the delivery boy during COVID period last two months? Wherever there's been, delivery was a short supply, it has happened. But so Marco has been has been has passed those extra cost onto customers. The margins have actually improved a lot. Okay. Thank you, sir. My questions have been answered. Thank you, sir. Anil, you're on mute. Yeah. So the next question is from Deep Singhla. Deep, go ahead and ask your question. Yeah. Thank you, sir, for this opportunity. My first question is to for Hitesh. Basically, before this quarter, Nokri always had an overdependence on IT. And in 02/1978, we saw billing cycle drop by 25% to 30% because of this overdependence. What is your view going forward that we will able to diversify our dependence from IT to different industry, and how do you see this panel? Well, our depend IT is high because a lot of the Bi College jobs are in IT. You know? And, you know, if the other industries start, like, for example, the infrastructure sector, you know, do we produce publish this job, which we've been publishing for the last twelve years. You know, jobs and sectors like infrastructure, real estate, construction, mining, oil and gas. I mean, they've been sort of these sectors have not been adding jobs. These companies have not been adding jobs for years now. Telecom was also very badly hit for a long time. So if these parts of the economy start to recover, manufacturing I mean, not nothing much to talk about in India as far as manufacturing is concerned. So because, you know, 70 or 65 should be in economy services, most of our revenue came from services, and of that IT services is very large part. Now even as things stand today, actually, you know, some of the domestic companies have been hit much more than the IT companies when it comes to business. You know? If you look at our jobs speak for April and May, we're down 60%, but IT is down 40%. Sectors like auto, you know, real estate, all of these sector, shopping, around 80%, 90%. So, you know, our sort of ultimately, we cater to anybody who wants to hire, and our product works for everybody. And where there is hiring is where we go. So if more hiring start happens in IT and allied industries, that's where our revenue will come from. On the other hand, if the other the other industries pick up faster, if they start creating jobs faster than, you know, IT companies can create jobs, then, you know, know, you our revenue sort of mix will change. So we are a barometer of, in some ways, of what's happening in the job market in the white collar space more than anything else. Makes sense. Sir, my last question is more about Mocry was is always a cash cow for us as a business, and we were always as a winner in this industry from last, like, decades. Like, now LinkedIn has come into this space, and you look around and you see a lot of high quality hiring where you hired a software developer for above 10 lakh and 12 lakh is going through LinkedIn or through AngelList. And they have a lot of cash to burn out because Microsoft is backing them. Like, what do you think, like, will be the future of LinkedIn and Nocree coexisting in this space? Because they killed monster.com in US. Like That's not true. You know, I think people think that Nocree killed monster, but sorry. LinkedIn killed monster in The US, but that's not really true. See, LinkedIn has become a big player on the on only in the last three or four years. And, you know, Monster started going down post 02/2008. And Monster lost in the in The US lost share to CareerBuilder and then to Indeed. You know? So so Indeed became a big player in The US. People sort of miss out of the fact that Indeed Indeed is now where it became The US. And both Indeed and and and LinkedIn coexist in The US. Monster also continues to be around. So so, you know, we, of course, continue to see LinkedIn as competition, and we are aware of the fact that LinkedIn is now backed by Microsoft, which is, you know, one of the probably the most valuable company one of the most valuable companies in the world today. Lot of resources, lot of technology at their disposal. However, you know, we believe that for a certain sort of type of hiring, you know, our, our platform works better than other platforms. We are a more we are cheaper, faster, more efficient way to hire certain types of talent. We are not seeing that everybody's getting hired through nocree.com. You know, in mostcom in most cases, companies do about 30 to 50% hiring through Nocree. The rest, they source from other platforms still. So there's a lot of scope for us to improve our offering to our to our clients to help them up their hiring through Nokri from 30% to 40 to 50 to 60 to 70 or wherever we can get to. At the same time, we are conscious of the fact that a lot of the premium hiring does not happen through Nokri. And which is why you are seeing the efforts you know, one, of course, we're trying to improve our experience in our platform. Two, we are investing in in new areas. So we in new portals. So we just acquired imjobs.com. So the premium sort of hiring in in the nontech space, a lot of it actually, you know, you'd be surprised happens to I m jobs. They're a very popular brand in that segment. Internally, also, we're experimenting with BigShift. Now BigShift is positioned as the platform for hiring high end tech talent. Okay. Early days. You know, early days, but we are seeing what we can do to disrupt that space. So and there is some sort of hiring which will not go through us. You know, it's a very large market, a billion dollars, maybe $2,000,000,000 a year on hiring. We could get 800 crores, 900 crores out of that. So we still have a long way to go, and I'm sure both LinkedIn and and us can coexist in this market for a long coexist, not just coexist, but also growing this market for a very long time. Thanks a lot, sir. Right. You, Rajeev. Yeah. The next question is from Rajeev Jain from Citi. Rajeev, go ahead and ask your question. Yeah. Hi. Can you hear me? Yeah. Please go ahead. Yeah. Hi. So my question is on Jeevan Shapi and in context of that comment you made on the QIP. Now within Jeevan Shapi, my understanding is is that the market has always been There are three large players. You are you are one of the three large players, but your market share in the revenue side on that would be probably less than 10%. So my question is, a, do you think the elevated marketing would just get you higher market share in that segment, or are you also looking at making a number of acquisitions? So in that context, are there smaller matrimonial businesses out there that you think you could just acquire? Could that be, like, a series of acquisitions here and there wherever you see a decent business? Thank you. That's my question. Yeah. You're, you know, you're right that we are the smallest of the three large players in this category. We have a market share of maybe about 13% nationally, but all our revenue comes from the north and west. So when you sort of let's just look at the north and west, our market share is maybe closer to, you know, 25 or so. And if you look at the North, you know, our market share is closer to 35, 40%. So we are a reasonably strong player in the markets in which we compete. As nationally, we are strong the smallest of the three large players because we don't have anything coming from the South. And marriages in India happen within the same caste and community and linguistic groups and often you know, and therefore, it's possible to build a large business in North and West without building a business in South, unlike jobs, for example. No. So so we are committed to this space. You know? We, you know, see an opportunity in the long run to build a large business. If there are companies available for acquisition, we are more than open to the idea of acquiring them, provided they sort of you know, we think they they can create value for us in the long run and help us get to the number one position or the number two position over a period of time. If that is not an option, then we will we are committed to investing and growing the business organically as well. That may take longer, you know, and it's probably, you know, a more uncertain route, but we'll we'll probably cost a lot less also if we are successful. Got it. Thank you. That that was my question. Thank you so much. Yeah. The next question is from Uzkash Shulokarwala from Davos Capital. Uzkash, go ahead and ask your question. Sorry, Arun. Which capital? No. Stay with again. This is from Davos Capital. Okay. Thank you. Let's go ahead and ask a question. Yes. So what are your views on on Amazon entering the food delivery business? Well, it's too early to say. It's just a small operation in Bangalore. Let's see what happens there. We'll we'll be you know, we're waiting and watching it, but, you know, Zimato is pursuing its business plans independently. But just one thing I wanna say, the nature of the logistics operation in delivering food is very different from delivering other products in Amazon and Flipkart sales. Right? Because food, you have delivered forty five minutes, you know, and that's it. Somebody orders, deliver in forty five minutes. This means it's very local. The network is much more intense, and it's immediate. And there are two peaks in a day. There's lunch and there's dinner. And then there's a, you know, sort of a much lower demand rest of the day. So whereas in, you know, in in in ecommerce and other products, you can club your orders, you deliver it tomorrow, day after, one day, two days, three days. And there's a route you can plan, and the guy can carry 10 packets and deliver them in sequence. So the nature of the operation is different. It's not as if the current Amazon network. And therefore, it will be very, very useful here. And, you know, I had asked, you know, about a year ago, you know, how many delivery boys do we have versus, let's say, ecommerce company like Amazon? He said we have, what, eight times more because we have delivered only in those 45, twice a day. And and and and that's why it's it's a different so let's see what happens. I mean, Amazon is a a big company. It's a casual company. It's a good execution. It's a good logistic company. All of that is there. But I think restaurants need a special focus. The second question is, what would be the structure of the AIF we have created? Oh, well, I mean, you know, as it's a CAT two AIF. It's a it was announced in January. So there's AIF. There's a AMC. There is a there's a trust, and there's a fund. And, you know, we are now looking to get an external investment of the fund, one or two, probably one, and, you know, and take it forward from them. So do you have created a separate management team for TIF or it would be internally managed? No. There'll be a separate management team in the air, but it's the same management team of running a current investment strategy. Oh, okay. Thanks, Utkash. Next question is from Siddharth Fora, Reliance Nippon Life Insurance. Please go ahead and ask your question. Sudhat, you are there? Seems he got logged off. Maybe we can take Diraj Diraj's question now. Diraj's question. Yeah. Yeah. So, Diraj, go ahead and ask a question. Yeah. Thank you. Thank you for the opportunity. Ditesh, you mentioned the job market is $2,000,000,000 and revenue is only 800. What is that $2,000,000,000 number that you mentioned? No. No. I, you know, I this is not born from any research. I took a number. You know, maybe it's a billion and a half, maybe it's 2 and a half billion. I don't what the exact number is. But this is basically if you look at how much companies spend on recruitment. So there are, for example, 8,000 recruitment, at least they were before COVID, which were all sort of, you know, profitable and generated, you know, making money. And then there is spend on us, and then there is spend on referral hiring programs. And then there is spend on recruitment automation, and then there are in house recruitment team companies spend. So the total spend on recruitment for a lot of companies is often a percentage of their revenue, and it's sub it's substantial. Now what I meant to say was that, you know, we are sort of we just get 800 crores, 900 crores a year out of them. And this market will only grow over the next few years as more and more people enter, you know, get employed in in the private sector. And therefore, is room for, you know, both us and some of our competitors also also grow for a long time. And, of course, we are attempting to, like like I said, get into adjacent areas as well to enhance to grow our share of the wallet. Okay. But a lot of this also would represent the money that the, you know, consultants keep Yeah. By using your your website as a tool, hiring tool. Right? So you cannot capture all of the time because they're using you as a tool and still capturing bulk of the value. Right? Yeah. This so this includes spend on recruitment firms. This includes spend on advertising. This includes spend on recruitment automation, you know, all all the stuff over there. Okay. And you also earlier you said, you know, that substantially reduced the advertisement and marketing spend. So in a in a, let's say, a scenario where COVID, you know, sort of continues to affect the core businesses, can you, like can you quantify what do you mean by substantial reduction? Because that can help us reduce, you know, the impact on the profitability quite a lot. Yeah. So, you know, like, a lot will depend on how the situation develops. I what I said was if we've cut down our spend substantially in q one because, you know, there was a lockdown and the market was shut, and there was no point in spending money. It was sort of there were no customers out there. On the other hand, if the market bounces back quickly, you know, if you get back to even 80% on an order in a hurry, then, you know, you know, we'll start spending on marketing once again. Right now, because, you know, of the lockdown and because things are slowly getting back to normal, we have cut down our spend in both real estate and jobs by, you know, substantial amount. I don't remember the number for last year, but I know it's substantially lower than, you know, what we normally spend. But in in matching, the other hand, we continue to spend aggressively because, you know, they have the business going for us. We don't see a slowdown. Billings billings are down 70%, so our spends would also be down in that magnitude? Ballpark, maybe even more. Okay. Okay. Thank you. Thank you for taking my time. Thanks, Ritesh. The next question is from Sudhir Bhuntafali. Please go ahead and ask your question. He's from Uzila, Loswal. Yeah. Thanks, Satish. Thanks for taking my question. If I were to benchmark now with competing platforms like Monster or Shine or Times, and if I were to look at on a per resume basis, what is the price of resume? It is almost there is there's almost eight x sort of a differential. So on Okri, it works out there on 8 rupees per resume, while on other platforms, it works out to be more or less around 1 rupee per resume. So in the current kind of context, are you facing, you know, explicit or implicit pushbacks from clients in terms of a price reduction demand or request for a price reduction? That's it from my side. Thanks. Yeah. Of course. See, you know, in in every slowdown, you know, because client requirements go down, they tend to depend. They have they are not sort of in a hurry to hire. They negotiate harder. So that happens it is the slowdown. But that's got nothing to do with or the anything else for that matter because the residents are available on our platform and not available on those platforms. So even if companies want to hire users platforms, they are not able to hire. Some small customers where maybe one requirement or half a requirement, they may sort of try out, some of the smaller players. But, you know, normally, we don't know this sort. The number two in the company wants to hire a 100 people. And like I said earlier, Then you still need the other. On the other hand, the high you know, so you can do all your high. Sudhir, anything further? No, no. That's it from me, sir. Thanks. Thank you so much. So the next question is from Vince. Please go ahead and ask your question. Hi, sir. A couple of questions. First one first one on NOCRI billings. So are they Sir, can you speak up a bit? Your your Just go to the mic. Yeah. Can you hear me now, sir? It's the same, sir. Carry on. Okay. My first question, sir, is that, have many clients come to you back saying that, we need a smaller duration of the billing? And, is that is that likely to be a new normal if that is the case? Yeah. So we, you know, we have all kinds of products. So, you know, we have a a usage based model you can buy for something for three months, six months, one month. You can also buy something for seven days. You know, we have all kinds of products. You can, you know, top up what you buy over time. So all yeah. And and, you know, what you're saying is is to some extent, right, in a in a in a good year, you know, see, when if clients know that business is gonna be good for the next twelve months, this is by for the year. Right? But if it if they're uncertain, if they're don't know how things are gonna play out, then often there's some sometimes the business is sort of by for three months and then say, okay. You know, once things start looking up, then, you know, we buy again. So that tends to happen to to some of the and especially to the smaller customers. So it's likely to happen this time as well. Got it. And a couple of questions on Zomato, sir. First one being the last round which was announced. In that, if I understand correctly, the all the amount from Alibaba was not yet up. So about And and financial. Sorry. And and financial was yet to come. A $100,000,000 was yet to come. Is that amount still yet to come, or or what is the view what is the status of that amount? No. The balance amount is yet to come. Okay. Okay. Any view on is there a I mean, because of the government, you have to seek approval for that amount to come. Is is there some issue regarding that amount or or nothing? We are still we are still evaluating, but the company has got environment investor interest from other investors also who are who don't need permission. Right. Okay. And about that an earlier question from other participant about Amazon. If if I understand correctly, Amazon was not directly trying to target the food delivery businesses, what we understand, because they are just targeting their to give extra service to their prime customers. And in fact, if you we open Amazon app, you can see Swiggy, Domino's, all kinds of services over there. So is that really is that really something that Amazon is trying to You know, the the problem is because of the of the patchy, you know, opening up of the lockdown and, you know, stock start, people not having confidence, people not going to office office, not open, but not opening. You know, it's it's hard to say what's you know, we don't really know what will happen there. So we are waiting and watching. Okay. That that's also my sense. Thank you. If anyone wishes to ask question, you may please raise your hand. Yeah. The next question is from Nitesh Bodha. Please go ahead and ask your question. Hello. Can you hear me? Nitesh, we are not audible. Hello? Am I audible? Yeah. It is better. So my I have couple of questions. I'm listing them together. First, can you please throw some light on revising our initiative in the past bridge networking site, like in a new opt out, for example, multi multilingual feature? Second, and are there any plans to enter the professional networking site like LinkedIn or blue collar segment or any other nice segment? And third, what are our thoughts on Metamony's foreign allied services in marriage, and do we plan to enter something similar in GM and Satton? That's So bridge is something, you know, we stopped working on a few years ago, and there is no plan to divide bridge at the moment. You know, of course, we are working on bunch of other things like that sort of keep mentioning. You know, we have ambition box. We are working on content. We are working on building data products. We are working on a bunch of other things on the Naughty sort of platform. But there is no plan to revive, bridge, or enter into professional networking in any form or avatar. Right? Blue collar, you know, we have a small experiment going on inside the company. It's called jobhair.com. You know, it's more yellow collar or gray collar or whatever. It's not exactly construction workers and, you know, it's not but it's they could it targeted people who are. You know? And but, you know, of but you don't need a profile. You don't need a resume to get onto the platform. You know? Profile is enough. And, you know, early days, we are sort of test marketing it in in CI. So you can check it out. But this is something which we think will play out over a eight, ten year period. It's not as if, you know, it's gonna start generating revenue from tomorrow because it'll require investments. What was your last question? I I missed that. There was something on Jeevan Sathi, which Yes. Yeah. Allied services Yes. On matrimony. Oh, so Allied service and matrimony. Yeah. I'm not see, weddings are a big market, but right now, our focus is on getting market share in in the match money space, in the matchmaking space. Once we get to a certain size and scale, then, of course, you know, we will look at adjacent sort of areas and and and categories like wedding services. But right now, we are focused more on getting acquiring profile and gaining market share in in in this category because, you know, like we discussed earlier, we are number three, and we need to get to a certain size and scale before we start looking at adjacent stuff. Participants, if you have any questions, you may raise your hand on the screen. Now I hand over the conference to mister Hitesh Chobrai for his closing comments. Yeah. Thank you, Vivek, and thank you, Anand, for moderating this. And thank you everyone for, taking time out to be on this call with all of us. And, this is a tough time for everybody. So, you know, please stay safe, and, you know, have a great evening. Look forward to meeting you again in a month and a half from now. Ladies and gentlemen, on behalf of InfoEdge India Limited, we conclude this conference. Thank you for joining us, and you may disconnect your lines now. Thank you so much, and good Thank you. Thanks. Thank Thank you. Thank you, everyone. Thank you so much. Thanks, everyone.

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