Info Edge Slips Into Red In Q4, Writes Off Investment In Bizcrum Infotech

Info Edge on Friday reported a consolidated loss of Rs 503.19 crore for the fourth quarter (Q4) of FY23, compared to a net profit Rs 719.5 crore in the year ago period.

In a regulatory filing, the firm also disclosed that it has written off its entire investment in Bizcrum Infotech, the parent company of business-to-business (B2B) marketplace Bijnis, worth Rs 76.6 crore. Earlier, the firm had written off Rs 276 crore of its investment in Rahul Yadav-backed 4B Networks in the third quarter.

The write off, Info Edge said, came “following the principles of conservatism and prudence, and after due consideration of factors including continuing cash burn, limited availability of cash in proportion to unspecified liabilities with respect to buyback obligations (including liquidation preference) of the company towards investors under the Shareholders Agreement and uncertainty of future capital raise in such a situation, in the subjective judgement of the management, the investment has lost its inherent value."

Meanwhile, revenue from operations saw a 28 per cent year-on-year (YoY) uptick to Rs 604.8 crore in Q4, up from Rs 472.9 crore in the same period last year. On a sequential basis, revenue grew a slight 2.6 per cent from Rs 589.5 crore in the previous quarter.

In FY23, overall, the company’s revenue increased to Rs 2,345.7 crore, compared to Rs 1,589 crore in FY22. Info Edge reported earnings before interest, tax, depreciation, and amortisation (Ebitda) loss of Rs 446.96 crore in the fourth quarter against Rs 760.30 crore in the corresponding period a year ago.

The firm’s total expenses stood at Rs 440.9 crore for the quarter, versus Rs 366 crore in Q4 FY22. Expenses increased on a sequential basis as well from Rs 422.5 crore in Q3.