Just Dial Share Price Jumps 11% on Strong Q1 FY25 Performance

Just Dial shares surged over 11% to ₹1,156 per share on July 18, following a robust performance in the April-June quarter (Q1FY25), meeting market expectations.

Net profit soared to ₹141.2 crore in Q1 compared to ₹83.4 crore in the June 2023 quarter. Revenue from operations increased by 13.6% to ₹280.5 crore from ₹247 crore in the corresponding period of the previous fiscal year.

At 12:00 pm IST Just Dial share price were set at ₹1,234 reaching an all time high. On July 16, Just Dial shares fell 1.46% to ₹1,035.25 from the previous close of ₹1,050.55 on the BSE. The stock opened flat at ₹1,050.60 on the BSE. The firm's market cap declined to ₹8,803.80 crore, with a total of 0.18 lakh shares traded, amounting to a turnover of ₹1.87 crore.

Operationally, EBITDA rose to ₹80.5 crore in Q1FY25 from ₹36.6 crore in the same period last year, with the EBITDA margin significantly improving to 28.7% from 14.8% in Q1FY24, attributed to rationalized employee costs. The company credited this margin growth to top-line growth and cost efficiencies in both employee costs and other expenses. However, Kotak Institutional Equities analysts indicated that Just Dial will need to hire more employees to sustain future growth. 

In Q1FY25, employee costs decreased by 5.3% year-on-year due to a 15% year-on-year reduction in headcount, a trend observed over the past four quarters. This decline in expenses can be attributed to reduced employee expenses. Just Dial’s employee benefit expenses stood at ₹172.87 crore during the quarter, down 5% from ₹182.55 crore in Q1FY24. 

Other expenses also decreased by 2.5% year-on-year, likely due to reduced advertising expenditures. Overall, total expenses shrank 4% to ₹213.55 crore in Q1FY25 from ₹222.27 crore in the same quarter the previous year.

Just Dial reported 181.3 million unique visitors, reflecting a 5.7% year-on-year and 6% quarter-on-quarter increase in Q1FY25. Active listings reached 44.9 million as of June 30, 2024, marking an 18.2% year-on-year growth. The company added 1.37 million new listings to its database this quarter. Mobile platforms accounted for 85.3% of the traffic, while 11.3% came from desktop or personal computers and 3.4% from the Voice platform.

Kotak analysts predict that lower-than-expected costs will drive a 3-7% increase in EBITDA moving forward. They value Just Dial at a 17x ex-cash P/E multiple, including the value of cash, and maintain a 'buy' rating with a target price of ₹1,240 per share, despite long-term growth concerns.

This year, the local search engine's stock has surged over 29%, compared to the Nifty 50's 12% increase. On April 30, 2024, Just Dial reached a 52-week high of ₹1,162 per share.

Mr. Shwetank Dixit, Chief Growth Officer of Justdial, commented, “Justdial’s highest ever revenue and a 69% YoY growth in PAT demonstrate our ability to drive strong financial performance in a highly competitive market. We’ve prioritized delivering exceptional value to our stakeholders, including shareholders, users, and businesses. Our dedication to providing in-depth search content has empowered users to make informed decisions, while our platform continues to be a powerful digital marketing tool for businesses.” 

“We remain focused on identifying new growth opportunities and managing costs. We’re excited about our emerging low-cost customer acquisition channels, which hold the potential to significantly improve margins over time. As we look ahead, we are committed to innovation, including the integration of generative AI to further elevate user experiences. We are proud of our journey so far and are confident about exceeding expectations in coming quarters,” Dixit added.

Founded in 1993 by VSS Mani, Justdial provides both B2C and B2B listings for small and medium businesses in India. Just Dial Ltd (Just Dial) offers local search services, providing information and user reviews for various categories such as movies, restaurants, hotels, doctors, electronics, clubs, hospitals, jobs, real estate, shopping, fitness centers, educational institutions, consultants, petrol pumps, security, taxis, travel agencies, chemists, ATMs, beauty and spa, and bookstores, among others.

The company delivers its services through multiple platforms, including the internet, telephone, mobile internet, and SMS, and also offers online retail services. It operates under the brand Justdial in India and internationally.

Just Dial has a presence in cities such as Mumbai, Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, and Pune, and has operations in Singapore, the UK, the UAE, and the US. The company is headquartered in Mumbai, Maharashtra, India.