A. Impact of COVID-19 on business operations:
As a result of lockdown imposed by the Government owing to COVID-19, the Company closed its offices from March 23, 2020 and moved to Work-from-Home (WFH) for all employees. Post lockdown relaxations, Company has opened its offices across India with limited workforce in line with Government’s directives issued from time to time.
B. Impact of COVID-19 on traffic and monetization
To optimize discretionary costs, company had curtailed its advertising spends (both digital and non-digital) from Apr-20. For the month of Apr-20, average daily traffic declined ~48% versus Feb-20 (pre-COVID period) levels. For the month of Jul-20, average daily traffic was down ~12% versus Feb-20. However, since majority of traffic is presently coming organically (without advertising), on a like-for-like basis, Jul-20 organic traffic has surpassed pre-COVID levels (Feb20). Overall, for 1Q FY21, quarterly unique visitors declined 36% YoY and 28% QoQ.
In order to assist SMEs in these unprecedented times, the company launched various offers on its paid campaigns during the period, including better discounts, flexibility in activation of their campaign (post lockdown), better payment terms, etc. As a result, the company was able to arrest COVID-19 impact on 1Q FY21 monetization (Collections) to a decline of 52% YoY and 43% QoQ. With lockdown easing, monetization is improving and the impact of any revised lockdown/ restrictions in certain geographies is being monitored.
C. Optimization of Operating Costs and focus on automation
While prioritizing safety and well-being of its employees, the Company is extensively leveraging technology for its operations. While the Company has a strong Balance Sheet and robust cash position, the Company is re-evaluating all costs and optimizing the same. The company is focusing even more on automated processes to enable it to successfully navigate the ongoing uncertainties and emerge stronger
D. Liquidity Position
The Company has a strong Balance Sheet and robust cash position ensuring enough liquidity to continue its operations and does not expect that it will face any liquidity crunch.
The Management has made detailed assessments of recoverability and carrying values of its assets comprising of property, plant and equipment, investments and other current assets as at June 30, 2020 and on the basis of the evaluation, has concluded that there is no significant impact on its financial results as on June 30, 2020. However, the impact assessment of COVID-19 shall be an ongoing process given the uncertainties associated with its nature and duration.
F. Internal financial reporting and control : No Impact