Higher promotion costs, staff expenses to weigh on Info Edge margins

Recruitment solutions could see faster recovery, real estate segment could be a drag

Info Edge (India) reported muted operational performance in the September quarter (Q2). The disappointment was on the margin front, given that higher advertising costs — especially on its matrimonial segment (Jeevansathi) — weighed on operating profit.

Margins slid by 17 percentage points on a sequential basis to 20.1 per cent, as advertising expenses nearly doubled. Advertising and sales promotion (A&P) costs stood at 20 per cent of sales, compared to 9 per cent in the June quarter. The management expects the current levels of investment in advertising to continue, with the firm looking to increase its market share in the matrimonial