A startups balance sheet

Original Article: "Info Edge sets apart Rs. 30 crore for acquisitions" – ContentSutra.com.

Someone has uploaded the financials of naukri.com on ContentSutra. I am definitely interested in the personnel expenses for 2002. Their personnel expenses matched their administrative expenses and other costs of running the company in that period. Thereafter, the administrative costs outpaced the personnel expenses in 2004. Both categories grew at a rapid (almost) exponential clip. I am not sure why? The nature of the business is that of a jobs portal, I would think that people and not administration would be the greatest capital expense.

The IPO itself is going to be an interesting one to watch. This is the vanguard of Indian Internet classifieds companies. Their choices, performance and image will set the tone for subsequent IPO's. Their draft prospectus also tells me that they are making a lot lower than what they ought to. Their net profits at the end of March, 2006 was $3 million. This of course pales in comparision to Google who were already making a net profit of $100 million+ at IPO. Monster.com, a more mature and larger job portal – does $100 million annually (correct me if I am wrong) as I write. Closer to home, Jobstreet have posted a net profit of $4.5 million for 2006.

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