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 of Rs.719.5 crore in the period last year.

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

Info Edge said the write-off came “following principles of discretion and prudence, and after considering factors including continued cash burning, and limited cash availability commensurate with unspecified liabilities in respect of repurchase commitments (including best liquidation)”. Shareholders and uncertainty about future capital increase in such a situation, in the autonomy of management, the investment has lost its inherent value.”

Meanwhile, revenue from operations increased by 28 per cent year-on-year to Rs. 604.8 crore in the fourth quarter, up from Rs. 472.9 crore in the same period last year. On a sequential basis, revenue grew by 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 EBITDA of Rs.446.96 crore in Q4 as against Rs.760.30 crore. rupees in the same period last year.

The company’s total expenses were Rs.440.9 crore for the quarter, as against Rs.366 crore in the fourth quarter of FY22. Expenses on a sequential basis also increased from Rs.422.5 crore in the third quarter.