Just Dial Reports Q2 FY25 Earnings: 114% Surge in Net Profit and 9% Revenue Growth
Prepared On: October 12, 2024
Company Overview
Just Dial Ltd., founded on December 20, 1993, in Mumbai, India, is led by CEO Venkatachalam Sthanu Mani. As a key player in the Technology Services sector, particularly in Internet Software/Services, Just Dial is a leading local search engine in India. It offers comprehensive search services via website, mobile app, phone, and SMS, helping users find businesses, products, and services.
The latest JD App integrates features like Map-aided Search, Live TV, and Stock Quotes, making daily tasks easier. Just Dial also provides services such as bill payments and travel bookings, generating revenue through search services, transaction commissions, and certifications.
Key Company Information:
- Company Name: Just Dial Ltd.
- Founded: December 20, 1993
- Headquarters: Mumbai, India
- CEO: Venkatachalam Sthanu Mani
- Sector: Technology Services
- Industry: Internet Software/Services
- ISIN: INE599M01018
- Website: justdial.com
Industry Outlook:
The Internet Software and Services industry is growing rapidly due to increased internet use, digital transformation, and the shift to online platforms. Companies like Just Dial are well-positioned as more people rely on digital tools to find local businesses and services. The industry is being reshaped by emerging technologies like AI and automation, enhancing user experiences and operational efficiency. With a focus on mobile apps and personalized solutions, businesses are catering to the rising smartphone user base. As digital adoption spreads, especially in rural areas, localized search services are expected to thrive, driving further growth and innovation in the industry.
Business Segments:
- Local Search Services: Users can discover businesses, products, and services via website, app, and SMS.
- Transaction Services: Includes bill payments, travel bookings, and online transactions.
- Rating Certifications: Business rating and certification services.
- Website Creation & Digital Marketing: Offers website building and marketing solutions.
- Revenue Streams: Search-related services, service certifications, and transaction commissions.
Earnings Report:
- Q1 Results:
- Net Profit: ₹141 crore
- Revenue: ₹281 crore
- Operating Expenses: ₹214 crore
- Profit Before Tax (PBT): ₹154 crore
- Q2 Results:
- Net Profit: ₹154 crore (9% increase from Q1)
- Revenue: ₹285 crore
- Operating Expenses: ₹217 crore
- Profit Before Tax (PBT): ₹182 crore
- Summary: Strong financial performance with growth in net profit and revenue from Q1 to Q2.
Financial Summary
Just Dial’s financial performance has shown significant growth over the recent quarters. In Q1, the company achieved a net profit of ₹141 crore with revenue of ₹281 crore, accompanied by operating expenses of ₹214 crore and a Profit Before Tax (PBT) of ₹154 crore.
By Q2, Just Dial reported a net profit of ₹154 crore, marking a 9% increase from the previous quarter. Revenue rose to ₹285 crore, with operating expenses slightly higher at ₹217 crore. The PBT for Q2 reached ₹182 crore, reflecting the company’s robust financial health and effective cost management strategies.
Performance Overview:
Just Dial Ltd. delivered a strong performance in Q2 FY25, with significant growth across key financial metrics. The company’s net profit surged by 114% year-over-year, reaching ₹154 crore, driven by efficient cost management and rising revenue. Revenue from operations grew by 9%, totaling ₹285 crore, reflecting sustained demand for its digital solutions. The company also reported a 25% increase in total income and a 98% rise in profit before tax, signaling robust profitability. With strategic investments in technology and a growing user base, Just Dial continues to strengthen its position in the market.
Debt and Coverage:
Just Dial Ltd. maintains a healthy financial position with manageable debt levels.
- Debt: ₹2.80B (2023), up from ₹700M (2020)
- Free Cash Flow: ₹64B
- Cash Reserves: ₹48B
- Strong debt coverage ensures financial stability and growth.
Stock Performance:
Just Dial’s stock has shown impressive growth, with a 2.96% increase on the BSE to ₹1,307.10 after its Q2 FY25 report and a 7% surge on the NSE to ₹1,359. Over the past year, the stock delivered a 76.10% return, with a 5-year growth of 110.43%. Its market cap stands at ₹100.10 billion, reflecting investor confidence.
SWOT Analysis:
Strengths: Strong brand, profit growth, AI investments.
Weaknesses: Limited global presence, rising debt.
Opportunities: B2B expansion, AI integration.
Threats: Intense competition, market dependency.
Conclusion:
In conclusion, Just Dial Ltd.’s Q2 FY25 performance highlights its strong market position and effective cost management, evidenced by significant profit and revenue growth. With strategic investments in technology and a focus on B2B expansion, Just Dial is well-positioned for continued success and value creation for stakeholders.