Just Dial Limited posts stellar Q2 performance with impressive profit growth

In a remarkable financial performance for the second quarter of Fiscal Year 2025, Just Dial Limited reported significant growth across multiple key financial metrics. India‘s leading local search engine company has shown resilience in its revenue streams, profitability, and operational statistics. The results, announced on October 11, 2024, highlight the company’s strategic focus on cost efficiency and user experience.

Just Dial’s operating revenue for the quarter ended September 30, 2024, stood at ₹ 284.8 crore, reflecting a year-over-year (YoY) increase of 9.3%. The company achieved an impressive EBITDA of ₹ 82.1 crore, up 68.2% YoY, with a healthy EBITDA margin of 28.8%, a notable improvement from the 18.7% margin reported in the same period last year. These figures underline the effectiveness of Just Dial’s efforts towards cost control and revenue diversification.

The company’s net profit soared by 114.6% YoY, reaching ₹ 154.1 crore, a significant leap that showcases the effectiveness of Just Dial’s streamlined operations and strategic market positioning. The profit before tax stood at ₹ 181.6 crore, up by 97.1% YoY. The increase was supported by higher gains from the treasury portfolio, attributed to declining bond yields. The effective tax rate for the quarter rose to 15.1%, influenced by recent changes in capital gains tax rules.

Traffic and Operational Growth

In terms of user engagement, Just Dial reported a substantial increase in quarterly traffic, with 198 million unique visitors, up 15.3% compared to the corresponding period last year. Mobile platforms continue to be the primary source of traffic, contributing 85.4% of total visitors, while desktop usage grew to 11.8%, reflecting a healthy diversification across different user interfaces.

Total active listings on Just Dial’s platform reached 46.2 million, up by 15% YoY, with over 1.3 million new listings added in the quarter. Notably, the listings with geocodes grew by 21.9% YoY, emphasizing the company’s commitment to enhancing the quality and accessibility of its data. The total images in listings increased to 206.5 million, up 25% YoY, which signifies efforts toward richer content delivery for users.

Expert Analysis: Optimizing Financial Strategy

Financial experts have praised Just Dial’s focused approach towards revenue growth and cost optimization. The significant YoY expansion of the EBITDA margin by 1,009 basis points has been viewed as a direct result of reduced operational costs, which declined by 4.3% YoY. Industry analysts have noted that the company’s strategy to invest prudently while also expanding its digital service offerings has resulted in this impressive financial trajectory.

One financial analyst stated that Just Dial’s ability to generate higher income from its treasury portfolio, which saw a 96.1% YoY growth, provides evidence of strategic asset management during volatile market conditions. This additional income helped the company boost its profit margins without relying solely on its core operational revenue.

Future Outlook and Strategic Moves

Just Dial’s cash and investments stood at ₹ 4,942.8 crore as of September 30, 2024, an increase of 15.4% from the previous year. This cash reserve places the company in a robust position for future investments in technology upgrades and potential market expansions. Additionally, deferred revenue was recorded at ₹ 515.5 crore, reflecting a 10.1% YoY increase, indicating strong customer demand and prepaid service subscriptions.

In addition to its local search services, Just Dial has continued to enhance its B2B marketplace platform, JD Mart, aimed at empowering micro, small, and medium enterprises (MSMEs) across India. The platform aims to provide manufacturers, distributors, and retailers with greater online visibility and an opportunity to connect with a wider customer base.

The company is also transitioning from being merely a search platform to an enabler of transactions, introducing JD Pay for digital payments and an end-to-end business management solution targeted at SMEs. This move is expected to generate new revenue streams and enhance user retention through added value propositions.

Just Dial’s Stock Performance

As of the latest market close, Just Dial Limited’s stock (NSE: JUSTDIAL) has experienced positive sentiment following the announcement of these robust results. Analysts believe that the company is poised for further growth, leveraging its expanding user base and increased profitability. Investors have responded favorably, reflecting confidence in Just Dial’s growth strategy and market resilience.