 "Attrition of women in IT sector")
Info Edge, the parent company of job platforms like Naukri.com and IIM Jobs, has observed an increase in IT job postings on its platform, accompanied by a significant rise in the number of resumes viewed by IT companies compared to three to four months ago, according to a report by Moneycontrol.
During its post-earnings analyst call on May 16, Info Edge expressed cautious optimism regarding whether this surge signals a stabilisation of utilisation levels for IT firms.
This upturn in IT job postings is seen as a positive development for the $250 billion sector, which recently experienced a significant decline in headcount. The IT industry has been grappling with challenges due to macroeconomic factors affecting client spending, the report claimed.
More CVs are now being viewed by IT companies on their website compared to a few months ago, the report cited Info Edge chief executive officer Hitesh Oberoi as saying. However, he emphasised the need for sustainability in this trend.
The company reported a 5 per cent increase in recruitment revenue to Rs 481 crore in the March quarter, despite FY24 being the first year in two decades when three of India's largest information technology (IT) services firms saw their headcounts drop.
According to reports, top Indian IT services majors Tata Consultancy Services (TCS), Infosys, and Wipro reported that their employee count plunged by 63,759 in the fourth quarter ended March 31, 2024.
Oberoi acknowledged the significance of Indian companies and startups in IT talent acquisition but noted that their hiring constitutes a relatively smaller portion in the broader context.
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Regarding the rise in job postings, Oberoi suggested that the utilisation levels of IT services firms are returning to pre-Covid levels amid a slowdown in hiring. He explained that many IT companies had over-hired during the pandemic-induced digitalisation boom, leading to higher attrition and salaries.
However, with the sudden disappearance of demand due to uncertain macroeconomic issues, IT companies realised they had over-hired, the report added.
Info Edge reported billings growth of 11 per cent in the IT segment and 12 per cent in the non-IT segment in the March quarter.
Info Edge Q4FY24 financials
The company posted a consolidated net profit of Rs 87.9 crore in the fourth quarter ended March 31, 2024.
The company had registered a loss of Rs 503.1 crore in the year-ago period.
The consolidated revenue of operations increased 8.7 per cent to Rs 657.42 crore during the quarter under review from Rs 604.78 crore a year earlier.
It recorded a 7.9 per cent growth in its revenue from operations at Rs 608.3 crore on a standalone basis for the quarter ended March 31, 2024, compared to Rs 564 crore in the corresponding quarter of the previous financial year.
The slowdown in IT hiring has bottomed out: Info Edge
According to a Business Standard report in March, despite a slightly below-expectations performance in the third quarter of FY24, Info Edge was witnessing strong investment trends driven by optimism about a pickup in the job market.
The JobSpeak Index, released by Naukri.com, showed promising signs with a 13 per cent month-on-month improvement in February this year over the preceding month, particularly in sectors like oil and gas and pharma.
Management remained optimistic that the slowdown in IT hiring has bottomed out, with large IT firms reaching 85 per cent utilisation levels by early Q4FY24. Additionally, non-IT demand remained resilient, and efforts to expand into smaller towns could reduce dependence on the IT sector.
