Shares of Info Edge Ltd. dropped in trade on Monday after the company's third-quarter net profit declined because of an exceptional item.
Net profit plunged 99% year-on-year to Rs 46.4 crore in the third quarter ended December, according to its filing. The company reported an exceptional loss of Rs 411.8 crore compared with an exceptional gain of Rs 2,280.4 crore a year ago.
The exceptional loss included a Rs 33.7 crore-loss from its joint ventures in the October-December. These joint ventures had reported a profit of Rs 2,405.4 crore a year earlier.
Its third-quarter revenue rose 37.14% over a year earlier to Rs 589.5 crore.
Info Edge Q3 FY23 (Consolidated, YoY)
Revenue up 37.14% at Rs 589.52 crore vs Rs 421.4 crore
EBIT was up 59.3% at Rs 168.3 crore.
EBIT margin at 28.5% vs. 25%
Net profit down 99% to Rs 46.4 crore vs. Rs 4,632.7 crore.
Shares declined 10.40% as of 1:15 p.m., to Rs 3,417.3 apiece and the stock rose as much as 12.13% intraday. Total traded volume stood at 11.1 times its 30-day average. The relative strength index at 14 implies that the stock may be oversold.
Out of the 24 analysts tracking the company, 14 maintain a 'buy' rating, six recommend a 'hold,' and four suggest to 'sell' the stock.
The return potential, as calculated by the consensus of analyst estimates, stands at an upside of 33.7% over the next 12 months.
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