Info Edge Q3 Review - Strong Sequential Increase In Billings; Revenue Seeing A Lag Effect: Motilal Oswal

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Motilal Oswal Report

Info Edge India Ltd.’s billings fell 31% YoY in H1 FY21. The same reflected in the 15% revenue decline during Q3 FY21, given the subscription-based model of the business.

However, in Q3 FY21 billings grew strongly by 19% QoQ, boding well with our assumption of a gradual increase in revenue going forward.

Increase in the margin by 5pp QoQ, despite a similar run-rate in advertisement spends (approximately Rs 500 million), was a result of operating leverage in the business.

While losses from investee companies fell by 40% YoY to Rs 940 million, it was flat sequentially, highlighting a new normal for Zomato’s unit economics.

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