Info Edge (India) Ltd

NSE:NAUKRI

Earnings Call Transcript 2018-Q4

[Operator]

Ladies and gentlemen, good day, and welcome to the Info Edge Limited Q4 and Full Year FY '17-'18 Results Conference Call. Joining us on this call today are Mr. Hitesh Oberoi, Managing Director and CEO; Mr. Chintan Thakkar, CFO; and Mr. Sanjeev Bikhchandani, Vice Chairman. [Operator Instructions]I would now like to hand the conference over to Mr. Hitesh Oberoi. Thank you, and over to you, sir.

[Hitesh Oberoi, Co]

Thank you. Good evening, everyone, and welcome to our fourth quarter and annual results conference call. We will first take you through the quarterly and annual financial performance of the company. Then we will 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, www.infoedge.in. We've also provided segmental billing, revenue, profit before taxes and DSR movement in our datasheet on our website.So let's talk about the standalone financials first. Billing in Q4 was INR 304.2 crores, up 13% y-o-y. FY '18 billings stood at INR 976.7 crores, up 14% y-o-y. Revenue in Q4 was INR 240.7 crores, up 15% year-on-year. FY '18 revenue stood at INR 915.5 crores, up 14% year-on-year. Operating expenses, excluding depreciation, for the quarter were INR 181.3 crores, up 25% year-on-year. For FY '18, expenses stood at INR 618.2 crores, up 8% year-on-year. A major proportion of the incremental expense this quarter was the marketing. Operating EBITDA stood at INR 59.3 crores versus INR 63.1 crores last year, having declined 6% year-on-year. However, excluding incremental marketing spend for the quarter, EBITDA would have been significantly higher. FY '18 EBITDA stood at INR 297 crores versus INR 327 crores last year. Operating EBITDA margin for the quarter stood at 24.7% versus 30.3% last year. For FY '18, EBITDA margin stood at 32.5% versus 28.4% last year. EBITDA adjusted for ESOP noncash charges stood at INR 59.6 crores versus INR 69.3 crores last year. FY '18 adjusted EBITDA stood at INR 350 crores versus INR 253 crores last year. Adjusted EBITDA margin stood at 28.5 -- 24.8% versus 33.3% last year. For FY '18, adjusted EBITDA margin stood at 34.4% versus 31.6% last year. Cash EBITDA for the quarter stood at INR 123 crores, down 6% year-on-year, and for FY '18, stood at INR 376 crores, up 21% year-on-year.Earnings per share for the stand-alone business stood at INR 15.04 per share in FY '18 versus INR 16.91 in FY '17. However, excluding exceptional items, the adjusted EPS stood at INR 22.6 per share for FY '18, up 32% year-on-year. Deferred sales revenue has increased to INR 395.6 crores as of March 31, 2018, versus INR 336.7 crores as of March 31, 2017, an increase of 17.5% year-on-year. The cash balance as of 31 March 2018 stood at INR 1,562 crores versus INR 1,458 crores as of December 31, 2017, and INR 1,362 crores as of 31 March 2017. The cash flow from operations before tax stood at INR 170 crores, up 47% year-on-year during the quarter, and INR 433 crores, up 37% year-on-year for the full year FY '18.While our revenue growth was in the mid-teens for the whole year, we optimized our manpower, facilities, travel and infra-related costs, which helped us improve our operating margins. We increased our operating -- our marketing spend during Q4 of FY '18, impacting our margins for the quarter. The results were very encouraging. The Naukri campaign served as a good brand refresh. The 99acres campaign helped us consolidate our relative position versus competition and increased our traffic share in virtually all the markets. And the Jeevansathi campaign helped us acquire more registrations. The board had recommended a final dividend of 15% for FY '17-'18. This will take the dividend for the year to INR 5.5 per share and through the 2 interim dividends of INR 2.5 per share and INR 1.5 per share already announced in October 2017 and Jan 2018, respectively.Moving on to the consolidated financial highlights. At the consolidated level, the net sales for the company stood at INR 988.2 crores versus INR 887.6 crores for the last financial year. For the consolidated entity at the PAT level, there was a profit of INR 502.2 crores versus a loss of INR 332.8 crores last year. This includes an exceptional item booked for [ dean ] gain on dilution of Zomato and Happily Unmarried as mandated by the International Accounting Standard 28.Adjusted for these exceptional items PAT for FY '17-'18 stood at INR 189.5 crores versus a loss of INR 10.4 crores last year. The aggregated top line of the investee company in FY '17-'18 grew to INR 937 crores versus INR 664 crores last year, an increase of 41%, while the aggregated EBITDA loss for the investee company was INR 188 crores versus INR 263 crores for last year.Moving on to results by segment. We first talk about the recruitment segment. In Q4, recruitment segment billings were INR 216.3 crores, while revenues were INR 170.2 crores -- INR 175.2 crores, a growth of 13% year-on-year. Operating EBITDA margins in recruitment segment were at 53.2% versus 56% in Q4 FY '17, as we invested in brand refresh exercise in the quarter. EBITDA margins adjusted for ESOP noncash charges stood at 53.3%. Cash EBITDA for the recruitment business during the quarter stood at INR 134 crores, 1% -- up 1% year-on-year; and for FY '18, stood at INR 433 crores, up 14% year-on-year.In the full year, recruitment billings grew 12% to INR 707.9 crores, while revenue grew 12% to INR 668.8 crores. EBITDA margin stood at 56.2% for the full year. Adjusted EBITDA margin stood at 57.5%. In Naukri in Q4, we added an average of 16,500 fresh CVs every day, and the Naukri database grew to over 57 million CVs. The average CV modifications were at 330,000 per day. Our traffic share in the job portal continues to be very high. And we continue to invest in our recruitment tools and systems business as we add more talent to the product. The business has been very, very important to us strategically.The slowdown in IT hiring continued to impact our growth rate for Naukri. In the IT segment, new customer acquisition as well as customer retention remains a challenge. As a result, the net customer numbers in IT remains flat for the year. But in terms of retention and billing, the IT as a sector, including captive, BPO, CRM, [ IT service ] [indiscernible] better than other large sectors for Naukri, aided by upgrades to existing clients. Also the BPO, CRM and captive segments did better as compared to the software [ services ] companies. The non-IT segment partly compensate for the lower billing growth in IT. Banking and financial services, retail, manufacturing, healthcare and other 4 sectors did well for the company in terms of overall billing growth. The consultant sector was also impacted because of a slowdown in IT hiring and hence did not fare as well in terms of billing growth. The Naukri Gulf business saw a decent quarter, continuing the trend from Q3 as both billing and revenue grew 13% year-on-year.Moving on to the 99acres or the real estate vertical. Billings in Q4 in 99acres grew 43% year-on-year to INR 56.2 crores, while revenue grew 36% to INR 37.3 crores. For FY '18, billing and revenue grew 24% and 21% to INR 157 crores and INR 135 crores, respectively. We increased our marketing spend during the quarter, resulting in a Q4 EBITDA level loss of about INR 13.5 crores versus a loss of INR 11.3 crores last year. EBITDA loss for FY '18 stood at INR 30 crores, down 47% from an EBITDA loss of INR 57 crores last year. For Q4 adjusted EBITDA, after adjusting for ESOP expenses, stood at a loss of INR 13.5 crores versus a loss of INR 9.7 crores last year. For FY '18, adjusted EBITDA stood at a loss of INR 25.7 crores versus a loss of INR 50.4 crores last year. Cash EBITDA for the 99acres during the quarter stood at a positive INR 5.4 crores. And for FY '18, the total cash losses were just INR 4.1 crores.Our traffic share amongst the real estate portals moved to a high of 51% during the quarter based on time spent as per SimilarWeb. And now we have traffic leadership in all major markets. This was [indiscernible] partly aided by our marketing campaign during the year. Billing from brokers and agents continue to inch up and cross builder billings in FY '18. Broker billings formed 50% of the overall billings, while builder billings were 45% of the billings. In FY '17, broker billings were at 44% and builder billings were at 53%. Home buyers clearly preferred retail and rental properties over new launches in FY '18. Owner billings also continue to increase in FY '17-'18. And proportion of our -- the proportion of billings from retail properties has been on increasing trend for the past few years due to a falling confidence in the new home market.We will continue to invest in marketing for 99acres moving into FY '19, as we try to consolidate our position as the real estate classified business, as we believe that the worst is probably over in this space. Daily sessions on the 99acres platform have improved 58% year-on-year as of March. The app daily sessions have been a strong number, 135% over the same period.Going forward, our focus or investments in 99acres would likely to be in the area of marketing and branding and tech and product and data quality on our platform. We have dedicated resources working of data science and machine learning to grow our algorithm. We have our team also working -- we have a team working on improving our listing quality and making our mobile experience better as well.We also believe that a successful implementation of RERA by different states will play a big role and catalyze the process of volume seeking on the real estate going forward. In all the major states with significant residential real estate activity, RERA rules are notified and authorities are processing applications. As of March 31, 25,000 RERA projects have been registered under RERA [indiscernible] 16,000 in Maharashtra alone. Apart from Maharashtra, positive registrations have started gaining pace in UP, Gujarat, MP and Karnataka as well. The other states are still lagging behind. And we are sensing a slow, but steady recovery over the next 3 or 4 quarters in most real estate markets. But let's see what happens. Moving on to the matrimony business. Billings remained flat year-on-year in Q4 at INR 17.9 crores, owing to aggressive sizing and activity by competition during the quarter. Revenue, however, grew 10% year-on-year and reached to INR 17 crores. FY '18 billing for full year grew 15%, and revenue grew 18% year-on-year to INR 70 crores and INR 69 crores, respectively. Higher marketing expense in the quarter aided higher [ factional ] registration, as the overall registration in Q4 grew 13% year-on-year. We have started looking to consolidate our position as we penetrate deeper into key regions we currently operate in and continue to spend more in marketing as we move into FY '19 to strengthen our brand presence.Operating EBITDA losses in Jeevansathi increased to INR 11.5 crores in Q4 of FY '18 from INR 3.5 crores in Q4 FY '17. The losses in FY '18 stood at INR 25 -- INR 3.5 crores versus INR 6.5 crore loss in FY '17. The adjusted EBITDA loss in Q4 stood at INR 11.5 crores versus a loss of INR 5.5 crores in Q4 of FY '17. For FY '18, adjusted losses stood at INR 22.8 crores versus INR 5.4 crores in FY '17. The cash EBITDA for Jeevansathi during the quarter stood at a loss of INR 11 crores and for FY '18 stood at a loss of INR 21 crores. More than 90% of our users access Jeevansathi from mobile, and the Jeevansathi mobile app continues to be the best in the category.Moving on to the Shiksha business. We made decent progress post revamping the site earlier this year, and we continue to work on our product. In Q4, however, billings degrew by 7% to INR 39.59 crores, primarily due to a high [ base], while net sales grew 12% year-on-year and reached INR 11.2 crores. FY '18 billing and revenue grew 3% and 17%, respectively to INR 12 crores. We made an EBITDA of INR 40 lakhs, similar to Q4 of last year. In FY '18, the Shiksha business profit stood at INR 2.2 crores versus a loss of INR 4.1 crores in FY '17.Adjusted EBITDA profit for the quarter stood at INR 42 lakhs versus INR 87 lakhs last year. Adjusted EBITDA profit for FY '18 stood at INR 3.7 crores versus a loss of INR 2.1 crores last year. Cash EBITDA for Shiksha for the quarter stood at INR 3.1 crores and for FY '18 stood at INR 2.8 crores.Moving on to our strategic investments. Our investee companies continue to witness solid growth. Zomato deal continued during the quarter, and we see the proceeds of our secondary sale to Alipay. Zomato has scaled up significantly post Alipay coming in. The company saw a huge improvement in user metrics towards the end of FY '18. We have put out the full year top line and operating EBITDA number for our subsidiaries like Meritnation and Canvera. For our other investee companies, we have provided the full -- the total numbers. The data available -- is available on our website, www.infoedge.in. In the exceptional items, there was a INR 44.1 crores diminution in value of SISL done on account of Canvera, INR 10 crores on account of MyDala, INR 1.1 crores on account of BigStylist and INR 20.4 crores on account of NISL.We also made investments in 4 new startups this year. Wishbook, which is a B2B cataloging app and marketplace connecting manufacturers, distributors, wholesalers, retailers and sellers. Univariety, a career and university admissions counseling platform for class IX to XII students. NoPaperForms, which is a SaaS-based government solution for educational institutions. And Gramophone, which is a agri and goods commerce and crop advisory for farmers. We also did follow-on rounds of investment in our investee companies, PolicyBazaar, Happily Unmarried, Meritnation and Canvera. We provisioned 2 of our investments, BigStylist and MyDala, during the year as the market valuations of these businesses had declined substantially. And yet we continue to invest in new investment opportunities from time to time.That's all we have from right now. Thank you, and we are now ready to take questions.

[Operator]

[Operator Instructions] We take the first question from the line of Vivekanand Subbaraman from AMBIT Capital.

[Vivekanand Subbaraman, Media Analyst]

On Naukri, Hitesh, you mentioned that billing growth was also 13% and IT seems to be slowing down. Any specific color on [indiscernible] -- am I audible?

[Hitesh Oberoi, Co]

Yes, you are. Yes, you're audible. Billing growth in Q4 was 9%. For the full year, it was 13%.

[Vivekanand Subbaraman, Media Analyst]

Right, right. So [ year ] on Naukri, you mentioned that IT continues to slow down. And could you give a bit more color on how we should look at the billing growth for FY '19 and categories and key markets? And also a related question is, is there any impact of competitive activity in the recruitment space? That's question one. And the second one is on 99acres, where you have seen stellar billing growth and also your losses, particularly cash losses, are now almost negligible. So what is the thought process with respect to growing this business, because clearly, this is a business where in the long run, the business has significantly undershot expectations?

[Hitesh Oberoi, Co]

So in Naukri, overall billing growth last year was impacted and especially in Q4 because of the slowdown in IT services. We saw good growth from the IT captive space, but the IT services space stayed -- slowed down for us. Markets like Bangalore, even Chennai, Hyderabad were impacted. Bangalore was our worst performing market last year. On the other hand, we saw a really good growth in markets like Bombay and Delhi, which are predominantly non-IT markets. So partly, the [indiscernible] losses in IT were made up of the higher-than-average growth in non-IT. Going forward, it all depends on what happens to IT hiring. Maybe the worst is over. Maybe it is not. Net hiring for all IT companies came down last year. I don't know what is going to happen this year. The non-IT space continues to do well for us. I mean, there are pockets where we are seeing really good growth, and that is also reflected in the JobSpeak index we publish from -- every month. Sectors like banking, financial services, insurance, healthcare, education, travel, tourism, hospitality, et cetera, did well for us last year. Sectors like telecom, construction, IT continue to be slow. So it's hard for me to say what is going to happen this year. A lot will depend on what happens to these sectors. And because these sectors [ are some of the ] [indiscernible] also impacted, we continue to push on new products aggressively in the market, but they are most [indiscernible] they don't really contribute in a very big way to top line at this point in time. So that's as far as Naukri is concerned. As far as 99acres goes, we had a good second half also because the base for this year was very low, because last year it was impacted a lot -- second half was impacted because of demonetization. However, we are happy with the progress we're making in 99acres. We're gaining market share. We're happy with some of the new products we have in the market. We are sort of sensing a slight -- at least we feel that the market, we have bottomed out, that the worst is probably over. Real estate activity had come to a halt for some time, especially in the first half of last year because of RERA. That confusion is now clearing out. Segments -- some segments like affordable housing are doing better than they were doing earlier. Luxury housing continues to be in trouble. But overall, the sense that we are getting is that -- and we'll just have to wait out for the next couple of quarters for me to sort of say this confidently, but it looks like the worst may be over. But let's see what happens going forward.

[Vivekanand Subbaraman, Media Analyst]

Right. Just a couple of follow-ups. Is there any impact on the change in incentives that we went through -- the sales incentives in FY '18 on the billing growth of Naukri? And on real estate, the follow-up that I had was, you mentioned that your share of billings from brokers seems to be going up, but builder billing kind of declined. Any thoughts on why the builders are not spending as much on our portals, given that now with RERA coming in, the builder should be a lot more focused on completing projects and pushing it out in the market, therefore builders should logically be doing a lot more ANP, isn't it?

[Hitesh Oberoi, Co]

Yes. So let me answer the real estate question first. So -- see what has happened over the last 3 or 4 years is because of the confusion around new homes, because new homes are not completed on time, because buyers have lost a lot of -- investors, lot of -- have a lost lot of money, because projects are still sort of 3, 3, 4, 4 years behind schedule. And to add this, because of the confusion around RERA in the first half of last year, builder activity virtually came to a halt in real estate. And this -- and also buyers moved from new homes to retail, right, because people want ready-to-move homes. They don't want to vacate it. Many people have burned their fingers and so on and so forth. Now the confusion around RERA has started clearing towards the second half of last year. Having said so, because there is a lot of inventory still in the market, new launches are still sort of scarce. There aren't any builders launching new projects. So this is why what has happened is that the builder sort of sees that our business has taken a hit and the broker piece, which is -- some of it is, of course, new homes with brokers or [ inter ] builders, a large part of our broker business is that as well. But a large part of the broker business is also retail. So that piece is growing a lot faster, right? But going forward, if the market jumps down to us once again and if people start showing more interest in new homes, this will change once again, right? The Naukri question was around incentives, right? So that cleared more in FY '16-'17. I don't think our business is impacted because of the changes in incentive policy in FY '17.

[Operator]

We take the next question from the line of Arya Sen from Jefferies.

[Arya Sen, Equity Analyst]

Firstly, if you could give a bit more color on geographically what is happening in the real estate business in different parts, whether it's more NCR-led or if it's pan-India? Which are the areas where you're seeing better pickup?

[Hitesh Oberoi, Co]

So as far as our business is concerned, of course, NCR continues to be a large part of our business. But -- and -- but I think the -- last year, we gained share in all markets and we saw good growth in Bangalore and Mumbai as well. The Maharashtra business was impacted for a long time because of the confusion around RERA. RERA is being strictly enforced in Maharashtra. And so for a while all activity came to a halt in Maharashtra. But towards the end of the year, Maharashtra started looking [ at ] as well. Chennai activity continues to be slow because of political uncertainty in Tamil Nadu. So -- but overall, the sense we are getting is that because demonetization is now behind us and because RERA is also now behind us, in general, real estate activity is slowly beginning to pick up launches, slowly beginning to sort of start in all markets.

[Arya Sen, Equity Analyst]

And is NCR leading that growth, or is it at par with the rest?

[Hitesh Oberoi, Co]

See, NCR is a big market for us. So we are doing very well in NCR. But I don't know what -- there is -- because of the state of affairs in the real estate market in NCR. It is also because of the fact that we are clear leaders in the NCR market. And therefore, we get a large share of the spending. While in the other parts of the country, we have more competition.

[Arya Sen, Equity Analyst]

Right. And secondly, you talked about marketing spend in, I think, 99acres, Jeevansathi. I'm not sure if you talked about it in Naukri as well. So any sort of number that you have in mind in terms of proportion of revenue or absolute number? How much higher than last year would it be? Any guidance on that front?

[Hitesh Oberoi, Co]

We don't have a marketing budget. We basically plan quarter-by-quarter. We do a quarterly plan and we see the impact on our numbers after we implement the plan. And if I'm doing the plan, this is what we get. But in general, we've been spending more on marketing in [indiscernible] Jeevansathi than we were 2 years ago. We also have upped our spending in 99acres, because it helped us and the market has been recovering a little bit. In Naukri, we did a campaign -- a marketing campaign after a long time -- a TV marketing campaign after a long time in Q4. And it was useful, because it was like as a brand refresh. We [ would offer ] you for a long time. But like I said, we'll evaluate, we'll see the results on these campaigns and go into detail and then fine-tune the campaigns as we go forward. It's difficult to say what our overall marketing spend for the year will be. But yet, in general, our marketing spend in the 99acres and Jeevansathi is [indiscernible ].

[Arya Sen, Equity Analyst]

Right. And lastly on Zomato, any sort of color that you can share beyond the numbers that you've shared?

[Hitesh Oberoi, Co]

Yes. So Zomato is expanding aggressively on the delivery side of the business. And the orders are increasing rapidly. Of course, this involves a certain amount of burn. But they're going head-to-head against Swiggy. And that's what their business plan is this year, to rapidly expand delivery part of the business in India.

[Arya Sen, Equity Analyst]

Just one feedback. MakeMyTrip is also having its call at the same time. So the only 2 large internet companies. So if you could try to avoid, try to have separate times for the calls, that would be very helpful for us.

[Hitesh Oberoi, Co]

That's good feedback. I don't think we look at their -- or we're even aware of it. MakeMyTrip is listed in the U.S., so we didn't look at that actually.

[Operator]

[Operator Instructions] Next question is from the line of Ravi Menon from Elara Capital.

[Ravi Menon]

I had a quick question on the employee benefits. So there I've not seen such a sharp increase q-o-q in a long time. So I thought part of a rationale for changing the way that we were targeting Naukri's sales, was to avoid some kind of seasonality. And I think on the revenue side, that's really shown that we don't have any quarter that's a blow-out quarter and that is more -- it's kind of smooth over the year. But employee cost this quarter seems to have gone up substantially. Anything that you would like to call out as a one-off?

[Hitesh Oberoi, Co]

Yes, so 1 or 2 exceptional kind of items that I can call out is gratuity is one thing. You may be aware that the government has increased the cap on gratuity from INR 10 lakhs to INR 20 lakhs. So that has an impact on our overall cost. Last [indiscernible] the headcount in Q4 has kind of started going up. So there will be some element of cost increase because of headcount as well. And in general, we have been investing more on technology area, and that also kind of has an impact on the overall [indiscernible] business.

[Ravi Menon]

Right. And should we also read something about sales incentives being more in Q4?

[Hitesh Oberoi, Co]

Sorry, can you repeat it again, please?

[Ravi Menon]

Can we say that sales incentives are also paid out in Q4? Or would that be also a slight seasonal factor?

[Hitesh Oberoi, Co]

Yes. So as compared to first half, I will say that sales incentive would have been higher in second half, particularly from the businesses, the numbers were kind of, like 99acres for example, the numbers are kind of good. So some of that also would be part of that.

[Ravi Menon]

And just a question on how you expect the geographic breakup for Naukri to go next year? I mean, you're saying that Bangalore was very soft over this year? Any other markets where you think some sort of improvement is possible? Are you seeing some early signs?

[Hitesh Oberoi, Co]

A lot will depend on what happens to IT services hiring. Markets like Bangalore are 70%, 80% IT markets. Even markets like Chennai, Hyderabad, only 40%, 50% IT for us, while markets like Delhi and Bombay are more diversified. So if IT hiring picks up, then there is no reason why Bangalore will continue to be slow, but a lot will depend on whether IT hiring is stable or not.

[Ravi Menon]

And we've seen that utilization across IT firms has reached historical highs. Hopefully, that should start picking up. So probably you'd have some [ leading ] indicators from consultant activities in that sector. But since you've not seen anything yet, I guess, we'll have to wait another couple of quarters for that.

[Operator]

[Operator Instructions] Next question is from the line of Vivekanand Subbaraman from AMBIT Capital.

[Vivekanand Subbaraman, Media Analyst]

Okay. So 2 questions from my end. One on Zomato, as things stand right now, can you outline some trends on the market share that we have on the food delivery business? Secondly, could you give some color on the average order value and take rates trends in the food tech market? That's one. Secondly, in terms of your investments, really you have now received some cash from Ali -- [indiscernible] financials. And clearly, you have invested in a few small B2B and B2C startups. Is there a thought process now to diversify the investment book a lot more than before? Or is it so that you will double down on your past investments as well?

[Hitesh Oberoi, Co]

Yes. So on Zomato, the company is not revealing, for competitive reasons, the exact data. But suffice it to say that -- look, the gap is being narrowed between Swiggy and Zomato on food delivery, the number of orders every day. But having said that, there's still a gap, right? Now as Zomato expands its delivery volume, the average order value is coming down, as was expected. But it is still higher than Swiggy's, we estimate. We don't know Swiggy's order value definitely, but we estimate it's still higher to these. But as it grows, order value will come down, because they deliver from restaurants to people. And as [ they go ] for restaurants, a lot of smaller order values in order to grow. So this is, I mean, a natural sort of thing that is what happens and is already happening. As far as our investment strategy is concerned, look, we'll obviously do both. We'll keep looking at new companies and we will also double down in those, what, existing portfolio of companies, which a, need the money; and b, we believe they deserve the money. Right? So it's not as if there's a strategy to naturally -- it will be -- it has been -- the bar for new investment is higher than it was earlier, because we've learned more about what a good investment is.

[Vivekanand Subbaraman, Media Analyst]

All right. Just one small follow-up. So on the doubling-down aspect, if let's say hypothetically Zomato wants to do another fundraise a year or 2 years from now, would we consider participating? Or is it so that we'll now keep paring down our stake.

[Hitesh Oberoi, Co]

Look, that's a bit of a speculative and hypothetical question. I mean, we will obviously evaluate the situation then. In the past, we have taken a kind of exiting policy, but then gone back in again. So nothing is ruled out. But having said that, it's not as if the company is short of money or is short of [ investment ] options to raise money from. We would, of course, keep in mind consolidation risk for a significant part of our -- a significant chunk of our investment portfolio is in Zomato, and that's one consolidation we'll look at.

[Operator]

[Operator Instructions] Next question is from the line of Ankur Rudra from CLSA.

[Ankur Rudra, Research Analyst]

Sorry if this was answered before. I missed the first part of the call. Could you break out what was the Naukri India growth and the Quadrangle growth for the quarter, billings and revenues, please?

[Hitesh Oberoi, Co]

Is the recruitment for the full year, for the quarter? Sorry.

[Ankur Rudra, Research Analyst]

For the quarter, for the quarter?

[Hitesh Oberoi, Co]

See, recruitment billing for the quarter was INR 216.3 crores, which is around 9% growth, while revenue was INR 175.2 crores, which is a growth of 13%. This is the entire recruitment segment.

[Ankur Rudra, Research Analyst]

I was looking for the India part. If you strip out the value [ and first ] Naukri, the India part, how much was that?

[Hitesh Oberoi, Co]

We don't give out India number separately.

[Ankur Rudra, Research Analyst]

If you can give me a sense of growth in India, even if you don't give strip out the numbers.

[Hitesh Oberoi, Co]

It'll be similar, in my view. It will be similar.

[Ankur Rudra, Research Analyst]

Quadrangle?

[Hitesh Oberoi, Co]

Quadrangle had a negative year. So Quadrangle degrew this year, whole year.

[Ankur Rudra, Research Analyst]

Okay. You may have answered this already. But any signs you've seen in changes in the market? If I just look at the Naukri data spread that's shared, it seems like there is some sort of a recovery in the underlying market? Has that been -- has it come through in the -- in your discussions with clients? Has [ the sales feedback ] by changes in the IT hiring side?

[Hitesh Oberoi, Co]

I think we have only a month left, a solid quarter to end. Hard to take for me right now, because a lot of our -- the new one is happening at quarter-end.

[Ankur Rudra, Research Analyst]

Okay, fair enough. Could you give us a sense of the traffic share that you have now in the real estate business? How has that evolved over the last 1 year, I mean, now versus how it was a year ago?

[Hitesh Oberoi, Co]

Our sense and how we measure traffic share is we look at time spent on SimilarWeb. So our sense is that we've been averaging close to 50% now for the last 4 to 5 months in terms of traffic share in real estate. So our traffic share has gone up over the last 6 to 8 months, and we've seen growth in almost all the geographies we operate in.

[Ankur Rudra, Research Analyst]

And this -- Hitesh, is the measurement on desktop or including everything?

[Hitesh Oberoi, Co]

Including everything. Desktop doesn't make sense anymore, because only a small fraction of our traffic is now on the desktop. So this is desktop plus mobile, web plus app.

[Ankur Rudra, Research Analyst]

Okay. And was the traffic share trend in recruitment including and excluding recruit?

[Hitesh Oberoi, Co]

Definitely. If you exclude Indeed, we continue to be around in the 70s, okay. And if you were to include Indeed, I don't know the exact numbers right now, but I think it would be closer to 60.

[Ankur Rudra, Research Analyst]

Okay. And just lastly around this, could you share the traffic share numbers for Jeevansathi as well?

[Hitesh Oberoi, Co]

Sorry -- Jeevansathi traffic shares?

[Ankur Rudra, Research Analyst]

Yes.

[Hitesh Oberoi, Co]

So we don't really track traffic at Jeevansathi, because we don't operate in all parts of the country. But in the North, we continue to be a strong #2 player. And it's hard to segregate the sort of traffic by sort of geography for the other players.

[Operator]

[Operator Instructions] We take the next question from the line of Miten Lathia from HDFC Mutual Fund.

[Miten Lathia]

What would be the proportion of unique users on the mobile web versus mobile app on 99acres?

[Hitesh Oberoi, Co]

See, actually we don't give out the data, but -- and I don't have it.

[Miten Lathia]

I don't need the absolute number. I'm just asking for the mix between the app and the mobile web on 99acres, if you can give that?

[Hitesh Oberoi, Co]

So I don't have the exact number. But broadly speaking, about a 1/3 of our traffic is on the phone, on the app. 1/3 is on the web, on the desktop. And 1/3 is on the mobile web. So these are broad figures. I mean, I don't have the exact numbers in front of me right now.

[Miten Lathia]

And would you be able to comment on what the same thing would be for Magicbricks or that data would not be available to you?

[Hitesh Oberoi, Co]

My sense is it will not be very different to what we're seeing or experiencing.

[Operator]

[Operator Instructions] We take the next question from the line of Ravi Menon from Elara Capital.

[Ravi Menon]

Your advertising and promotion expenses or the marketing, you do that on a content-to-content basis. So for the next quarter, should we expect that it will continue to stand at a similar level as this quarter or should we see that ease off?

[Hitesh Oberoi, Co]

So by next quarter, you mean Q1, right?

[Ravi Menon]

Right. Yes, Q1, yes.

[Hitesh Oberoi, Co]

Yes. So Q1, 99acres was in IPL. So we, of course, have spent a lot on 99acres. We already have sort of done that. Naukri, we're taking a [indiscernible] we're not on TV right now. In Jeevansathi, yes, our marketing spend will continue to be high. It will not be as high as it was Q4 of last year, but it'll continue to be high.

[Operator]

We take the next question from the line of Sagar Lele from Motilal Oswal Securities. [Operator Instructions]

[Sagar Lele, Research Analyst]

Just one question. In the balance sheet, there is about INR 330 crores classified as assets for -- held for sale. Just wanted to know what it's for.

[Hitesh Oberoi, Co]

So that's the Zomato $50 million transaction that we had done. So definitive agreements were already signed, and we're kind of [ intimated to ] [indiscernible] on that. But the actual completion of the transaction happened in Q1. So as on 31 March, it has been shown as -- under -- sales are under [indiscernible].

[Operator]

[Operator Instructions] Thank you. Well, ladies and gentlemen, that was the last question. I would now like to hand the conference over to Mr. Hitesh Oberoi for his closing comments.

[Hitesh Oberoi, Co]

Well, thank you, everyone, for being on the call. And have a great evening.

[Operator]

Thank you very much. Ladies and gentlemen, on behalf of Info Edge (India) Limited, that concludes this conference. Thank you all for joining us, you may disconnect your lines now. Thank you.