Category Earnings Results

Just Dial reports
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.

GM Breweries Q2 Earnings Report
GM Breweries Q2 Report: Stock Falls 3% Following Year-on-Year Sales Decline and Shrinking Profit Margins

Prepared On: October 10, 2024

Company Overview:
G M Breweries Ltd. is a significant player in the consumer non-durables sector, specializing in the production and sale of alcoholic beverages. Founded on December 9, 1981, by CEO Jimmy William Almeida, the company is based in Mumbai, India. G M Breweries focuses on manufacturing country liquor (CL) and Indian Made Foreign Liquor (IMFL) under brand names like G.M. Santra, G.M. Doctor, G.M. Limbu Punch, and G.M. Dilbahar Sounf. With a strong presence in Maharashtra, the company has established itself as the largest manufacturer of country liquor in the state.

Key Company Information:

  • Market Capitalization: ₹19.64 Billion
  • Dividend Yield (Indicated): 0.65%
  • P/E Ratio (TTM): 12.55
  • Net Income (FY): ₹1.52 Billion
  • Revenue (FY): ₹6.15 Billion
  • Employees: 363
  • ISIN: INE075D01018
  • Website: gmbreweries.com

Industry Outlook:
The alcoholic beverages industry in India is experiencing steady growth driven by factors like rising disposable incomes, changing consumer preferences, and urbanization. Market segments include beer, spirits (CL and IMFL), and wine, with spirits holding a significant market share.

Key Industry Trends:

  1. Regulatory Environment: Stringent regulations on licensing, taxation, and advertising impact industry profitability.
  2. Consumer Preferences: Shift towards premium and branded products, with a focus on quality and brand reputation.
  3. Distribution Channels: Expansion of organized retail and e-commerce enhancing consumer accessibility.
  4. Health and Wellness: Rising health awareness driving demand for healthier beverage options.
  5. Market Growth: Indian alcoholic beverages market is expected to grow at a CAGR of around 10% in the next five years.

Business Segments
G M Breweries operates in key segments focusing on country liquor, IMFL, and exploring opportunities in non-alcoholic beverages to diversify its product portfolio.

  • Country Liquor (CL): Leading presence in Maharashtra with brands like G.M. Santra and G.M. Doctor.
  • Indian Made Foreign Liquor (IMFL): Catering to middle to high-income consumers with a variety of spirits.
  • Other Segments: Focus on non-alcoholic beverages for product diversification.

Earnings Report
Q1 FY25:

  • Revenue from Operations: ₹152.3 crore
  • Net Profit: ₹31.5 crore
  • Profit Before Tax (PBT): ₹29.8 crore

Q2 FY25:

  • Revenue from Operations: ₹149 crore
  • Net Profit: Decreased by 13.11% quarter-on-quarter
  • Profit Before Tax (PBT): ₹28.97 crore

Half-Year Performance:

  • Net Profit: Increased by 10.24% to ₹46.61 crore in H1 FY25.

Financial Summary

  • Revenue (FY 2023): ₹6.15 Billion
  • Net Income (FY 2023): ₹1.52 Billion
  • Market Capitalization: ₹19.64 Billion
  • Dividend Yield (Indicated): 0.65%
  • P/E Ratio (TTM): 12.55

Performance Overview:

  • Revenue Trend: Stable with minor fluctuations, half-year revenue up by 1% year-on-year.
  • Profitability: Net profit improved in H1 FY25 despite a decrease in Q2 FY25.
  • Expense Management: Total expenses slightly increased, and raw material costs declined.
  • Cash Flow: Operating cash flow has declined over the past three years.

Debt and Coverage:

  • Debt managed effectively with a steady increase.
  • Careful monitoring of free cash flow and coverage ratios is needed for financial stability.

Stock Performance Insights:

  • Appreciation of 41.98% YTD, absolute 1-year return of 39.67%.
  • Shareholding pattern indicating ownership distribution among promoters, institutional investors, and public shareholders.

SWOT Analysis:

  • Strengths: Market leadership, diverse product portfolio, robust financials, consistent dividend growth.
  • Weaknesses: Decline in PAT, cash flow issues, market dependence.
  • Opportunities: Market expansion, product diversification, digital growth, partnerships.
  • Threats: Regulatory risks, competition, economic factors, health trends.

Conclusion:
G M Breweries Ltd. showcases strength and market positioning in Maharashtra’s alcoholic beverages industry. Despite challenges in Q2 FY25, the company reported stable revenue and improved profits in H1 FY25—an attractive investment option with strengths and areas of concern for investor consideration.