Q1 19/20

Aug 13, 2019

Quarterly report

Ladies and gentlemen, good day, and welcome to the InfoEdge Limited Q1 FY twenty nineteentwenty twenty Results Conference Call. Joining us on the call today are Mr. Hitesh Abhurai, Managing Director and CEO Mr. Chintan Thakkar, CFO and Mr. Sanjeev Beek Chandani, Vice Chairman. As a reminder, all participant lines will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. I now hand the conference over to Mr. Hitesh Avaroy. Thank you and over to you, sir. Thank you. Good evening, everyone, and welcome to our FY twenty nineteentwenty twenty first quarter results conference call. We will first take you through the quarterly financial performance of the company. Here, I would like to mention about the implementation of Ind AS 116 from the current financial year. As you must be aware, effective 04/01/2019, there is a change in accounting for lease as mandated by Ind AS 116. Accordingly, we have recognized the right to use assets and lease liability. We have also charged depreciation and interest on the same instead of expensing the rentals. Consequently, EBITDA is higher, but PAT is lower, as we have mentioned in the publication. As we've opted for modified retrospective approach as per Ind AS, comparatives of previous quarters are not separately available in our published results. To enable comparison, we would be announcing EBITDA for each segment with carved out impact of Ind AS. We will, of course, that cover each business in more detail. And in the end, we'll be happy to take questions. The audited financial statements file has been uploaded on our website, infohed.in. We have also provided segmental billings, revenue, profit before taxes and DSR movement in our data sheet on our website. Let's start with the stand alone financials. Billings in Q1 were INR336.3 crores, up 18.7% year on year. Revenue in Q1 was INR312.8 crores, up 20.5% year on year. Operating expenses excluding depreciation for the quarter were INR211.8 crores, up 20.8. Operating expenses readjusted for INSAS116 stood at INR217.8 crores, up 24.26%. Operating EBITDA stood at INR101 crores versus versus INR84.3 crores last year, an increase of 19.8% year on year. And operating EBITDA readjusted for Ind AS 116 stood at INR94.98 crores, up 12.7% year on year. Operating EBITDA margins for the quarter stood at 32.3%. Operating EBITDA readjusted for Ind AS 01/2016 stood at 30.37%, down from 32.5% last year. And EBITDA readjusted for ESOP non cash charges and Ind AS 100.2 crores versus INR 88.1 crores in Q1 of last financial year. And EBITDA margin readjusted for ESOP and Ind AS 116 for the quarter stood at 32%. Cash EBITDA for the quarter stood at INR123.5 crores, up 10.3% year on year. Deferred sales revenue stood at INR495.3 crores as of June 3039 versus INR 419.8 crores as of June 3038, a growth of 18% year on year. And the cash balance in IEL and all its subsidiaries, 100% of its subsidiaries stands at INR $15.43 crores as of June 3039. This was at INR $19.80 crores as of June 3038. Yes. So recruitment business and the real estate business, of course before I move on to the businesses, I'll let you also cover the consolidated financial highlights. At the consolidated level, the net sales of the company stood at INR319.7 crores versus INR277 crores from the previous from corresponding 2018. For the consolidated entity at the PAT level, there is a loss of INR192.1 crores versus a loss of INR22 crores from the corresponding quarter of last year. And adjusted for exceptional items passed to that a loss of INR 189 crores in the quarter ended June 2019 versus a loss of INR 22 crores in the corresponding quarter last year. The recruitment business and the real estate business continue to drive the growth of In for Edge in the last quarter. We increased our spend on marketing substantially in all our businesses, specifically Nokri and Jeevan Sathi. Our overall spend on the marketing for the quarter was around INR55 crores, is up 46% year on year. We continue to sort of invest aggressively in product technology, data science and engineering verticals. Both of these investments have we've also sort of piloted a couple of new projects and investments in these areas will continue in the subsequent quarters as well. Now let's move on to the recruitment business. In Q1, the recruitment segment billing was at INR251.75 crores, up 19.8% year on year, while revenues were at INR219.5 crores, a growth of 19.2 year on year. Operating EBITDA stood at INR114.9 crores, up 9.9% year on year. Margins were at 52.4% versus 56.8% in Q1 of last year. EBITDA readjusted for Ind AS116 stood at INR111.8 crores at a margin of 50.9%. And EBITDA readjusted for ESOP non cash charges and Ind AS116 stood at INR117.37 crores at 52% versus 57.8% in the same quarter last year. And cash EBITDA for recruitment during the quarter stood at INR146.5 crores, up 10.6% year on year. In Okri in Q1, we added an average of 19,000 fresh CVs every day and the Okri database grew to over 64,000,000 CVs. Average CV modifications are at 366,000 CV mods per day. Our traffic share in the traditional job board space continues to grow and is now at over 85% without Indeed and at about 67% including Indeed. We continue to invest in our recruitment tools and systems business as we sort of experience more adoption of our offering in the market. We continue to invest aggressively in data science and AI and machine learning to improve the user experience of our of both recruiters and job seekers on our platform. Platform. The IT and IT AS segments continue to drive the growth rate growth for Nokri in the last quarter. Southern markets did phenomenally well compared to markets in the West and North. We also invested aggressively in marketing, especially television, brand building and outdoor campaigns in the last quarter. All our metrics sort of indicate to us that these campaigns are very well received in the market and the impact on our sort of business has been positive and our brand has got a boost as a result of these campaigns. As you also know, we also acquired we also completed the acquisition of I'm Jobs during the quarter. I'm Jobs reported a billing of INR5.7 crores for 2020. This is a growth of 22% from Q1 from the same quarter last year. The business operates at a near breakeven level. Now let's move on to the other verticals. In the real estate business, in 99 acres, billings in Q1 grew 18% year on year to INR48.4 crores, while revenue grew 34.6% to INR56.4 crores. EBITDA for the quarter stood at INR24 lakhs. EBITDA adjusted for Ind AS116 stood at a loss of INR1.62 crores against a loss of INR11.84 in Q1 of last year. EBITDA adjusted for ESOP and Ind AS 116 expenses stood at a loss of INR97 crores versus versus a loss of INR10.73 crores last year. And a cash EBITDA loss of INR99 crores during the quarter stood at INR7.3 crores INR7.13 crores against a loss of INR11.73 crores last year. Our traffic share amongst the real estate portals continues to be around 50% based on time spent as per SimilarWeb. And the broker segment continues to see strong growth with almost 20,000 brokers now active on the platform. And like we've indicated in the past, the key focus and invest areas for ninety nine Acres will continue to be sort of market brand building and investment in product and technology and data quality to improve the quality of experience for our users on our platform. Moving on to the Jeevan Sathi business. Billings in Jeevan Sathi grew 10.3 year on year in Q1 to INR20.11 crore and revenue grew 9.4% year on year to INR19.92 crore. The operating EBITDA loss in Jeevan Sathi stood at INR8.83 crore in Q1 of FY 'twenty, up from a loss of INR5.6 crores last year. EBITDA adjusted for Ind AS116 stood at a loss of INR9.49 crores. EBITDA readjusted for ESOP and Ind AS116 stood at a loss of INR9.3 crores for Q1 versus a loss INR5.46 crores last year. Cash loss for during the quarter stood at INR9.13 crores. Higher marketing spend on JeevanSati during the quarter led to an increase in traffic as well as a number of paid users or free users registering on the platform. We continue to see positive sort of benefits of increased marketing spend, which leads to higher traffic growth on the platform as we move into the '20. In the Shiksha business, in the Education business in Shiksha, in Q1, billings grew by 13.9% year on year to INR16.93 while revenue grew 10.7% year on year to INR16.93 crores. In the Shiksha business, we made an EBITDA profit of INR4.26 crores in Q1. EBITDA adjusted for India at INR1162 crores, INR3.73 crores versus an EBITDA of crores last year. And EBITDA adjusted for ESOP and India AF116 for the quarter stood at INR3.95 crores versus an EBITDA of INR3.32 crores last year. Cash EBITDA profit for the quarter stood at INR3.09 crores versus a cash EBITDA profit of INR2.1 crores last year. We continuously we sort of continue to put in all our put in a lot of effort to upgrade the quality of content on the Shiksha platform. Then moving on to our strategic investments, Zomato continues to witness very strong overall growth across all their businesses, including the food delivery business. They are now operating in many Tier three towns as well. Their focus is not only to grow, but grow efficiently and hence they are able to, so that they can reduce the burn over time. PolicyBazaar and PesaBazaar both continue to maintain a healthy growth rate. The revenue growth in the last two financial years has been more than 60%. And we also continue to evaluate new investment opportunities. That's all from me right now. And thank you, and we are now ready to take any questions. Thank you very much, sir. Ladies and gentlemen, we will now begin the question and answer session. Session. We have our first question from the line of Jain Andwani from Perfect Research Funds. Please go ahead. Hello. Yes, please go ahead. Yeah. Good evening, sir. Yeah. Good evening. I have two few questions. I would ask it in a single order. What competition do you foresee from players like Indeed, Google Jobs, and MindSphere, which was recently acquired by Questcor? Like our global peers, are we planning to conduct screening tests to check aptitude, psychometric tests so as to better filter out candidate as a major help to employers? Can you throw more light on recent investments in Shupanate, Gramophone, and IIMM jobs? Global players like deep.com, recruit, and fifty one jobs are growing at more than 15% revenue growth. With such a large base, can we also grow at the same numbers? Okay. As far as competition from the likes of Indeed, Google Jobs and Monster goes, Indeed has of course been very active in India for the last few years. It's been maybe more than five, seven years now. For a while in between, they were very strongly they were spending a lot of money on marketing and advertising as well. And they were very active on the performance marketing side, too. We haven't really encountered them much in on the customer side, but they were very aggressively sort of trying to attract more job seekers to their platform. And that continues to be the case with Indeed. They've sort of been a little out of media for the last three or four months, but they could come So as Google Jobs is concerned, Google Jobs is not really trying to monetize the platform right now. They are basically I think their goal seems to be to improve the experience for job seekers who search in Google for jobs. We have not been giving them our jobs till now, but we will continue to revisit our position from time to time. Monster, we haven't seen any activity from Monster market in the last for the last few years now. Yes, they've been acquired by Quest. But I think on traffic and many of the parameters, they still have a long way to go. Our traffic share in the job portal space, if you look at our traditional competitors like Shine, Monster, TimeJobs, was actually higher than 85% or maybe also 88% in some months last quarter. As far as screening tests and psychometric tests go, we continue what tends to happen is that companies use platforms like ours for shortlisting candidates and only on the shortlisted candidates do they run psychometric and screening tests. So as a part of our effort to sort of build recruitment tools and solutions for our clients, we may sort of over time integrate with some assessment companies. We already sort of allow companies when they post jobs in NOCRI to ask a few questions, which can sort of help them filter out filter the right candidates, while posting a job itself on nocri.com. So that continues. But we company and we sort of provide these services to companies who want to hire job seekers from campus, not in the main NOCRI business at the moment. As far as you've mentioned 15% revenue growth, I mean the NOCRI business for the last few quarters has been growing at more than 20%. And of course, we are working on a lot of interesting new ideas. If some of those work out, then of course things could change. Also a lot depends on the economy. If growth rate sort of picks up in the economy, then the growth rate in Norcreek could pick up. I'm Jobs, we acquired very recently for a consideration of around INR80 crores. Company has got a very strong brand and a very good product in the sort of space in which it operates, which is like right now a niche space. We think that we using that NOCRI sort of sales distribution method, we sort of will be able to take not just I'm Jaws, but also some of the other offerings which are slowly becoming popular like highrisk.com and a bunch of others to a lot of customers because we work with close to 75,000 customers, as you know, while they currently have maybe just 700, 800 customers. On ShoeConnect and Gramophone, maybe Yes. What was the question? I couldn't make out the question. ShoeConnect and Gramophone. Could you repeat the question on ShoeConnect and Gramophone? Hello? I just wanted to know a little bit about the investments. Yes, linkages about three of these. Well, actually there's no linkage among the three of them, but they independent investments. ShuConnect essentially is a B2B kind of player, which connects shoe manufacturers to shoe retailers, the underserved retailer and the small manufacturer. And it's a fragmented industry, and it does logistics and ordering. It's showing good traction, and it's getting inbound interest from other investors. Gramophone has already raised around for an external investor after we went in. And that's and Gramophone is working in parts of Madhya Pradesh with farmers on advisory and ecom and selling them inputs. Can we have the next question please? Yes. Thank you, sir. We have next question from the line of Manish Adukya from Goldman Sachs. Please go ahead. Yes. Hi, good evening and thank you for taking my questions. A couple of questions. You mentioned that Indeed has been a bit absent from the media in the recent month in terms of advertising and marketing, while your spend has gone up in the recent quarters. And you also indicated in your opening remarks that you've seen some positive trends coming out of that. If you can just throw some light on how has this increased advertisement spend helped you in terms of ramping up your customer base or your revenue? That's one. And a couple of quick questions on the real estate. Again, if you can just provide a quick update on what the competitive scenario there is like at this point and what the underlying real estate market at this point in time looks like. I mean there's been some weakness in the underlying real estate market, but what's your sense? How does it look like over the next three, six, nine months in terms of the underlying market? Thank you. So you know, Indeed has been around for a long time now, and they were they've been advertising aggressively for the last few quarters. They were out of media for the last two or three months. And when I say media, mean sort of media like television and outdoors. They've been aggressive on the performance marketing side. So they continue to aggressively advertise online. And sort of we were happy doing a little bit of advertising, but not that much for a long time now. We were out of media. We made a new ad film and went back on went up on TV a few months back. And the results have been very encouraging. See, advertising we do is more directed at consumers and job seekers. And it's unlikely to impact our corporate revenue in the short run. But in the long run, if we get a brand sort of if our brand moves to the next level and we are able to attract more job seekers to the platform and more people download our apps and become more active, then over time, it will sort of translate into increased revenue from our customers as well. That's the idea behind sort of these marketing campaigns. As far as the real estate sort of business is concerned, the real estate market continues to be in very bad shape. In fact, in our business also while billing growth has actually slowed down this quarter. So and while it grew at 18%, our billing at 18%, they were sort of different markets behave differently. In some markets, grew at 25%, 27%. In some markets, we grew in single digits. So I guess the impact has been different in different sort of cities. But definitely, what we are hearing from our customers is that there is a problem with sort of financing both for builders and for buyers of new homes. And as a result, new launches are likely to be hit, right? So not enough builders will be will probably launch new projects now and that impacts our business. Having said so, still a market where we are a tiny part of the market, The real estate market has been through hell for the last five years. We had there are demonetization, GST, all kinds of issues, but we've been growing every year. And in fact, in this quarter, we made a sort of sort of broke even in this business. So if the market continues to be even sort of if the market continues to grow even moderately, we should be fine. We should be, at some point in time, able to pick up on our pick up our growth rate. But yes, if there is a big crash in the market, then who knows. As far as competitive position is concerned, like I mentioned, we continue to sort of have a close to 50% traffic share in the market as per sort of similar web. In some cities, we believe we are fairly strong and we have close to 60% share. In some other markets, are we have close to 40% share. On the whole, we believe we have close to 50% share of the or 45% to 50% share of the market at this point in time. Sure. Just a quick follow-up on the matrimony business. Again, in that business, spends have been quite high. How is the competitive scenario there in that space? What are we seeing? So that space is very competitive. There are it's a three player market in the North and West where we are a strong player. It's a two player market mostly between us and Shadi. And what has happened really in the last three or four years is that we managed to create a place for ourselves in this market. From a virtual nobody, we are now a business which is doing about crores a quarter in terms of collection. Of course, there's an aggressive sort of price war in this market at this point in time. All the three companies are spending a lot of money on advertising also and therefore cost of customer acquisition is going up. And that's why our losses have gone up. But we believe it's the right strategy for us at this point in time. And if we continue with the strategy for the next couple of years, we will be able to sort of become a strong player in one part of the market. Great. Thanks so much. Thanks for taking my questions and all the best. Thank you, sir. We have a next question from the line of Vivekananda Subaraman from Ambit Capital. Please go ahead. Yes. Hi. Thanks for the opportunity. So this customer addition trend that we are seeing in Nocree, can you throw some more light on this? What's going right for you there? And can you give a bit more color on the recruitment market growth that you have seen? My second question pertains to your investments. So over the last year or so, you've been making a lot more B2B investments. So can you give some color on the valuations in the B2B space compared to the B2C space? And how do you see it in the context of the addressable opportunity in B2B markets versus B2C? Thank you. Yes. So the recruitment market as a whole, it's very sectoral. I mean, some sectors continue to do well. Like I mentioned, IT, our IT business grew at more than 20%, in fact, last quarter. So IT companies seem to especially the companies based out of Bangalore and Chennai and Hyderabad seem to be doing well, and they seem to be hiring large numbers. And that's a positive for us. Sectors like healthcare, education, services in general, except for now, in VFCs and telecom services, which have been hit. And we were hiring as we hit to some extent continue to do well. The infrastructure or sectors like construction, real estate, high end heavy metals, engineering, they continue to be sort of in trouble. We've not sort of our revenue share, for example, from the so called or what we call the intra sectors, as over a period of the last ten years declined from a high of 25% to maybe now 15%, 16%, right? So these sectors continue to be in trouble from a hiring standpoint. And yes, and in general, sort of the SME space for us continues to do well. So sort of we've been able to get more SMEs to sort of list on NOCRI, which is where a lot of the new customers sort of growth comes from. But all in all, you see in a good economy, what tends to happen is that companies have high attrition and therefore they hire more people to even stay at the same number. They are more aggressive and bullish on the future and therefore they hire more people also to sort of their headcount also tends to go up. Many new companies that have shopped because they see new opportunities, more opportunity. While in a slow market, the opposite exact opposite happens. So some sectors have been slow, some sectors are okay. Overall, things even do under control right now. But of course, a lot will depend on what happens. Auto sector was another sector which is now in trouble when it comes to hiring. They're not hiring. They're sort of and all this is also very well captured in our job speak index, which we release every month. So for July, I think the job speak index was up 14%, while the IT index within the job speak index was up more than 25%. Sectors like banking and auto were negative in the JobSeek index. So that should give you a very good sense of what's happening in the market. On the B2B space, look, we evaluate opportunities, and we've invested in two B2B companies among the last five companies we invested in that we announced. One is a company called ShoeConnect, which we discussed a little while back. The other is a company called ShopKiranha, which essentially is in last mile distribution of FMCG products to the small retailer. It's operating right now of Indore and Jaipur and Bhopal. And they're doing a fairly good job. Good news about both these companies is that they've got a lot of inbound investor interest and from other investors, so it looks like they have legs. Now as far as valuations are concerned, right now in private markets, the phenomenon we're seeing is that, look, if a company is showing traction, it is getting chased by a number of investors. And whether it's B2B or B2C, valuations get bit up. Of course, B2C will be higher. But even B2C is even so B2C will be higher, but B2B also is not cheap. Okay. Just a couple of follow ups. Hitesh, you mentioned that the that in a good economic scenario, you have a lot more companies set up and, you know, a lot more attrition. So notwithstanding the GDP slowdown, how is it that we've managed to kind of sustain the billing growth and and revenue growth compared to, say, previous occasions when GDP growth used to slow down, our billing growth also would taper down. What is it that is working for us this time compared to prior occasions? Broadly, what you're saying is right, GDP growth does impact our billing growth. But there are two, three things I want to say. One is the, of course, IT. I don't whether IT sort of is more indexed to IT hiring is more indexed to India GDP growth or is it maybe it's more indexed to how The U. S. Is doing and how the rest of the world is sort of looking at. So that is one. And two, even within India, there could be a there is a slowdown in certain sectors for sure, like I mentioned in NBSE sector, the auto sector, telecom, these sectors seem to have been impacted. But there are other sectors which continue to do well. So there's no slowdown in those sectors as far as we are concerned. Sectors like travel, tourism, hospitality, education, healthcare, some of these services sort of continue to sort of jobs from these companies continue to grow on our platform. So one doesn't really know whether it's I mean, I'm not the best person to comment on this, but it doesn't seem like it's a slowdown like we saw in 2008 or 2009 when the entire economy sort of hiring came to a standstill. Enough companies are still hiring. But yes, certain sectors seem to be slow. Thank you. All the best. Thank you, sir. We have a next question from the line of Arya Sanh from Jefferies. Please go ahead. Yes. Hi, good evening. Firstly, if you could repeat the Jeevan Sathi revenue, I missed that. Jeevan Sathi, just one So billings grew 10% to INR 20.11 crores and revenue grew 9.4% to INR 19.92 crores. 19.92 crores, right? Okay. Yes. Secondly, the Nocree margin seems to have come off a bit more than usual this quarter. So you talked about, you know, brand campaign and ad spend. So how do we look at it going forward? I mean, should it then was there a bit of a one off in this quarter? And should it improve going ahead? Or does that continue for the rest of the year? Yes. There are two or three types of investments we're making in the recruitment business. One is, of course, this quarter, as in Q1, we spent a lot of money on marketing. We are spending right now, also, we speak, we are on TV. So this is going to be at least a two quarter thing. We'll see what to do in Q3 and Q4. We haven't made up our mind as yet as far as marketing expenditure goes. The other investments which are taking place are in 1B sort of we are beefing up our product and technology and data science and design capability. So we hired a lot of good people in that area, and we're doing a bunch of working on a bunch of things. The impact of which will not be seen tomorrow, but maybe over a period of time. So these investments will continue, and these investments could may only increase will probably increase with time. The third thing sort of we have also sort of now sort of doing a couple of new experiments. I mean, we have sort of set up teams to look at We set up a team to look at how we could disrupt the premium sort of hiring market using AI and machine learning. So there is some investment, which is going to go into these teams. These teams will not be able to they won't generating revenue for quite some time, in fact. So this is something which we are sort of and we're not capitalizing on these investments. We are sort of charging them to our P and L. So these investments will only also sort of increase over time. Right. And lastly, in your consolidated, the share of net losses of JVs, that seems pretty high. That is mainly Zomato and PolicyBizarre, right? Or And how much I think the main contributor would be these two companies, so you're right. And how much would be Zomato within that? And, you know, what's the sort of you know, what's happening there in terms of the cash burn? So Bert, they're bringing it down. I think they have a plan to bring it down substantially, and they've begun to act on it on the last three, four months, and it's only showing results. We're not announcing any numbers just yet, but they're progressing on that path. Right. But I mean just to sort of clarify the net the contribution to loss this quarter seems to be like INR $2.53 crores versus INR $3.10 crores for the whole of last year. There is an accounting in that, right? It's that is the loss. So last year, Nomadu had shown one of its our business. So there was one of They did a transaction in The Middle East with delivery hero, and so that that gave it a a revenue boost. Got it. Yeah. So last year was around the one off. This year, it is one more. There was a one off in the so the the adjusted for that, the loss would have been higher for the full year? Correct. That's Okay. And how much would that number have been? Number for the, you know, sale that they did? So the $3,310 crores for the full year, if I sort of adjust for that We have next question from the line of Shailin Kumar from UBS Securities. Please go ahead. Yes, hi. Thanks for the opportunities. I have two questions, one related to Nokri and another related to Nigra and Acres. So in Nokri, we could see that your marketing spend has gone up sharply. Just want to know how has your spend gone up on Google, Google ad spend or AdWords? And what percentage of traffic come to you from Google? See, we don't really share this kind of data. We can we advertise on multiple platforms. Google is, of course, one of them. So Hitesh, the thing is the reason I'm asking, see, earlier when somebody used to search jobs, let's say, software job in Bangalore Sure. You know, you will get some links, maybe yours, maybe Shine jobs, maybe Time jobs. Right? But right now, what you somebody will get is a list of jobs which provide by Google. Now if you have to that's what I'm understanding. Will will the pricing power shift to Google at that point of time? Because now Google can ask you if you want your ad to be above mine, you may have may have to pay premium. Right. So in that case Yeah. This is the marketing front of the club. That was the case earlier also. And if you want, actually, we can give our jobs to Google. They will be happy to take our jobs and feature them in their search. It's just that we are not doing it right now. Earlier also, and this will be the been Google's model from day one that if you want to appear on top, you have to advertise, right? Otherwise, you know, you can make into any link on top. It doesn't necessarily have to be your link. Yeah. Yeah. The the only point is that has it increased after this Google Google jobs or is it the is it the same? What has increased? Pricing of the amount which Google is charging. I really don't have the numbers. But you know, what you must have to understand is Google is one of the one platform we advertise on. We sort of advertise on Facebook, we advertise on YouTube, we advertise on Google, we advertise on the networks. We do app marketing campaigns, we are on television, everywhere. So Google is a very small part of our advertising sort of mix. Okay, fine. Good enough. Now on the second bit on 99 acres, as you have also pointed out, we've been seeing growth of 30% plus in this segment. And in this quarter, the billing growth was little lower around 18%, while the revenue growth was around 35%. So we were coming out of RERA and there was some kind of a pent up demand and there was a market shift, organized player were better placed and probably be able to garner that demand at that point of time. Are you thinking that from this even 18% growth is very good, but do you think that from a very high growth, we are kind of reaching to a steady growth or robust growth kind of a scenario? It's difficult to say because like I mentioned earlier in the call, even in this quarter, we saw very robust growth in some markets. So in some markets, we hit even 27%, 28%. In some markets, our growth was down to single digit. Since we are yes, our growth has slowed down in the last one or two quarters. But we are not sort of calling it a slowdown as yet. We are still hopeful that if you sort of do a few things right, we could sort of up our growth rate. But having said so, like real estate, don't want to sort of comment on because like I said, the last three years, we've been through RADA, we've been through demonetization, we've been through GST and now there's an NBFC crisis, which has hit both builders and buyers, right? So hard to predict what's going to happen in the market. It's not as the transactions have gone up over last year, transactions are where they were, it's not as if the number of homes being sold has gone up. And the situation is different, different markets. So we'll have to wait and see what happens. I mean, hard for me to predict. Yes, because underlying industry is in trouble, there's only a limit to which you can also grow. Not really. See, because overall market is still we estimate that the ad market for real estate is at least INR 3,000 crores, if not more. And even and ten years ago, actually, market was more like INR 6,000 crores. So the market has actually declined, the ad market over the last ten years. And in this market, we are doing what? We are doing INR 200 crores. So it's not as if we are 20% of the market or 30% of market. So even and there's market so in a declining market over the last five years, we've sort of managed to more than double or triple our revenue, right? So we believe that there is still opportunity for us to grow. Of course, we have to execute well. We have to do a lot of things at our end to make that growth happen. But even in a slow market, we can continue to grow for a long time, I think. Right. And how has our deferred revenue grew in real estate and what's the point where it stands right now? So I think we have The overall deferred revenue, I think, is up 18% over last year. But do you have the 99 acres number? So it would be in line with because we have billing growth is about 18%, revenue growth was about 34%, right. So revenue growth is kind of coming down because it is coming from the previous quarter, right. So it could be in line with what the current billing growth would be. Maybe yes, yes, I mean, you have to make the adjustments, but roughly you can say that. Okay, okay. Thank you so much. That's it from my side. Thank you, sir. We have next question from the line of Pranav Chatriya from Edelweiss Capital. Please go ahead. Hi. Thanks for the opportunity. I have only one question. Regarding G1, Sathi, how do you see your incremental market share in the your targeted North and the West market? Do you think you're closer to 40% to 50% market share there? Or and how what is aspiration in terms of the market share in that market? So we are stronger in the North than we are in the West. West is still a three player market, while the North is most largely now a two player market. I don't really have an exact sort of sense of our share, maybe we are in the 30s, not in the 40s, I think, at this point in time. On in terms of transactions, we may have slightly higher share because we sort of tend to sell at some sort of lower prices than some of our competitors. Our long term goal is sort of keep increasing our volume share and then of course our value share over time. We want to sort of be a player in this market. And we are focused on the North and West. In terms of population, the North and West are close 5060% of the country. They sort of have been slower to get onto the Internet because PC penetration was of course very low in these markets, at least in the North. We have thanks And to smartphones that are penetration going up, these sort of geographies are also or these sort of areas are also getting online. So in the long run, we believe that the North plus West would be will end up being 50%, 60% of the market. And if we can get to 50% share in these sort of regions over time, then at least we have a small we have a play. Okay. Thank you. That's from my side. Thank you. We have a next question from the line of Parag Gupta from Morgan Stanley. Please go ahead. Hi, good evening. Hey, Hitesh, you seem to have seen a significant increase in your recruitment or traffic or actually in your market share, I think about 70% in the previous quarter to 85% this quarter. So what's really happened out there? We've been active on we've been advertising aggressively for the last three, four months. That must have had an impact for sure. And yes, I mean, maybe that's and of course, we continue to work on improving our product and improving our experience that may have had some impact as well. But I think it's largely because of our media presence at this point in time. And in your view, who probably has been the largest market share donor in the quarter? Mean, the between so this 85%, 7%, 88% is when you take the market to be just Time Chop, Monster plus Shiny, which are our competitors. So my sense is all of them have lost shares in the quarter. I haven't really looked at the individual numbers, but know, see what happens in a slowdown, and we've seen that in the past, that our competition begins to cut back a lot on investments, right, in a slowdown because simply financially, it doesn't make sense for them because they are already probably loss making. And I think and we, on the other hand, as Hitesh said, we want to invest it, there's probably been a double whammy for them. So do you think that it's also because you have kind of exposure across segments while some of your other competitors may not be, let's say, in IT sector? Is that also a reason for that? Or do you think competitors also spread across most of the segments? No. I've seen pretty much everyone does everything. So it's not as if they are focused on a few segments only. Got it. Okay. Okay. And your acquisition of I'm Jobs, I don't think that's showing up in your Q1 numbers. So is that something that will only start coming through in Q2? Probably it will come from next year because right now, we have just we are holding it 100%, but we may go for a formal merger and once that is done, then it will become part of standalone. That may not be there. But I think you like the addition is scripted remarks, you said that the growth in the billing is about 22%. And it's kind of EBITDA breakeven. If you don't take certain exceptional costs, which are related to acquisition, if you don't take that into account, then it's kind of a breakeven business. But Chetan, wouldn't I'm job start coming in your consolidated numbers from Q2? No, no. It's consolidated numbers in that sense, no. But standalone, it will not come unless and until there is either a formal merger or a business transfer or anything of any other structure. Okay. And in this quarter, your tax rate was pretty high in the stand alone. So is that the number going forward? Or do you think this will normalize through the year? Should we normalize through the year? I think that could be I'm not sure if there is some India's impact or maybe some effect on that. But yes. Thank you. Thank you, sir. We have a next question from the line of Manish Pudhars from Reliance AIF. Please go ahead. Hey. Hi. I just had one question. Wanted to understand the thought process behind this RMS tool for Nokri. So what are these what are the opportunity, let's say, for a SaaS tool like this? And what will the thought process be handled? See, thought process is very simple. You see, we work with 10,000 of all shapes and sizes. Some of them are very small, some of them are very large. The large ones, of course, have access to the best tools out there in the market. So many of them go for international tools. There are some high end domestic players as well who sort of cater to that market. But there are a bunch of companies in the middle and some of the smaller ones as well who don't use anything at this point in time or they have tools that are very, very sort of outdated. So the idea is to sort of see how if we can get some of these companies to use our tools. There are many benefits. One, of course, one gets some incremental revenue. Two, one, you sort of want if you get a lot of your clients to do a lot spend a lot more time on the platform, there is greater lock in over time. So that's really the thought process. Still early days, and it's a new business for us. We are still just trying to figure out the SaaS space. We are not a SaaS company to start with, as you know. But yes, we're making good progress, and we'll continue down this path. And just wanted to understand, is this open source right now? Or so can the employer plug in the other players? Or it's just only Nocree? There are different versions. So there are versions where you can sort of plug in other players as well. But it's a lot of it is work in process. So it's not as if it's all 100% built out. There's still a lot of sort of work going on, on the offering. Okay, great. Thanks. Thank you. We have a next question from the line of Prince Padar from GM Financial. Please go ahead. Hi, Tesh, Sanjeev, Chetan. Just two, three questions from my side. Firstly, a bookkeeping question. India's EBITDA margin comparable last year reported numbers and similarly, 99 Nicas EBITDA comparable as in India's adjusted? I think it's the margin overall margin was about 2% lower if you kind of do the NDA adjustment. Okay. One second. The recruitment of comparable margin basically? I'll give it one second. Think it is called out earlier. The recruitment I think. Okay. So I'll just read out everything, okay? Also operating EBITDA for Recruitment stood at INR114.91 crores, margins of 52.8%, that's 4% versus 56.8% last year. EBITDA readjusted for in AS1162 debt INR 111.8 crores at a margin of 50.9%. Does that answer your question? Yes, yes, that does. 50.9% is what I was looking for. Similarly INR99 crores is comparable EBITDA. INR24 crores the loss of INR1.62 crores if you take adjust for India. Okay. Got it. Got it. Okay. And the second thing, sir, I was looking at NOKaj job stake. It has been for the last two months, especially, the job stick grow grew by 614%, while the there was strong growth in IT of 2631% IT software. So I don't understand if if the IT, which is our biggest component of job or basically biggest component of NOCRI is growing so well, what is causing this overall job speak index to come down? I mean, are there sectors like that? Yes, yes. Some sectors, like I mentioned earlier on the call, are in trouble. Sectors like MBS, the financial services sector, sectors like auto, sectors like telecom, sectors like the infrastructure construction real estate, they continue to sort of either de grow or grow in very, very low single digits. Okay. So because of these, the Jawstik is pulling up. Okay. Sir, the last question is on essentially 99 acres. So in the last one or two quarters, even on a normal base I mean, on a normal adjusted base, we are growing by 30 odd percent. And this quarter, it has come off a bit at 18% billing growth. Do you think this is to continue for a while if the underlying market remains as it is? Because if we remember correctly, 30 odd percent growth was coming on a higher base, which adjusted last year. And this has come off of it. So this will be a new normal going forward? Or do you think this can improve? This might be a one quarter thing. Well, it's really hard for me to say because there's so much happening in that market. There are all kinds of trends. And in some geographies, are doing well. In some geographies, we are not doing so well. I think we have to sort of we should wait and watch for one more quarter before we sort of come to a conclusion on what sort of should be the new sort of normal for us going forward. And just in addition to these questions, what how is the builder market agents market doing in this? Still the agents market providing the better revenue growth? Just Yes. The agent business continues to do well. See, the the it's very joke. Like, you know, so the dairy market, for example, is largely driven is largely in agent market, while the markets in the South are largely Pindalet. So like I said in this quarter, we saw strong growth in some markets, weak growth in others. Now by and large, yes, of course, the agent sort of continues to do well and continues to grow well for us. But if South is doing well, for example, there are no agents in the South. That means the builders in that particular quarter, the builder market sort of may do better than the agent market. But yes, but trend wise, I think the business over time will more and towards agents. Okay, perfect. Thank you, sir. Thank you, sir. As there are no further questions from the participants, I'd now like to hand the conference Hindesh Abheroi for closing comments. Sir, over to you. Yes. Thank you so much for sort of staying back too late for this call. We got a little late today because of our AGM and that's why the call was kept late. And so have a great evening and happy Independence Day to everybody. Thank you very much, sir. Ladies and gentlemen, on behalf of InfoEdge Limited, that concludes this conference call. Thank you for joining with us and you may now disconnect your lines.