Slower growth in Naukri, and possibly a delay in a rebound, were the key negatives in Q1 results. We believe the GST-related deferral in sales is largely a timing issue, though a slowdown in IT hiring could be a near term drag until other sub-segments of the economy and MNC/GIC hiring within IT compensate. Margins in Naukri were a positive surprise. We retain our longer-term positive stance on INFOE driven by its leadership in online job classifieds and global scalability potential of Zomato, though are less convinced on 99 acres given the sluggish real estate market. Our unchanged TP of Rs 1,100 is based on SOTP, valuing the job classified business at Rs 640/share, real estate business at
Rs 70/share, matrimonial business at Rs 19/share and investee companies (food and education) at Rs 232/share. Risks include further slowdown in Naukri and any down-rounds at investee companies. Financial highlights: Revenue growth of 12.6% y-o-y to Rs 2.2 bn vs. our and consensus estimates of 14% and 13% y-o-y, respectively. This was driven by higher-than-expected growth in 99acres offset by a weaker growth in the Naukri business. Ebitda margin came in at 31.6% vs. our estimate of 29.7% and consensus of 30.4%. PAT came in at Rs 636m vs. our and consensus estimate of Rs 544m and Rs 559m, respectively.