Just Dial Ltd Reports Strong Quarterly Results: Revenue Growth: A Turnaround Story in the Making

Just Dial Ltd Quarterly Result Update (Q4 March 23):

Just Dial Ltd., a local search engine company, reported strong quarterly results for the fourth quarter ended March 2023. The company’s revenue for this quarter was Rs. 233 crore, a 39.5% increase compared to Rs. 167 crore in the fourth quarter of the previous year. This growth in revenue shows that the company is hungry for growth.

In the last quarter ended December 2022, the company’s revenue was Rs. 221 crore, showing a quarter-on-quarter revenue growth of 5 percent. The operating profit margin (OPM) for the December 2022 quarter was 12%, which improved to 14% in the fourth quarter of March 2023. The net profit for the fourth quarter was Rs. 84 crore, including other income of Rs. 74 crore. While the overall profit metrics are not good, the significant growth in revenue suggests that the company is on a path of recovery.

For the annual result of March 2023, the company reported revenue of Rs. 845 crore compared to Rs. 647 crore in March 2022. The historical OPM for the company has been in the range of 20-25 percent, but this year it was 10 percent. However, last year, the OPM was negative due to losses. This year, the company is profitable at the operating as well as net level, which seems like a turnaround story.

As per the latest shareholding pattern reported to the exchanges, Reliance Retail Ventures Ltd holds 64.38 percent of the company’s shares, while domestic institutions hold 8.97 percent. DSP Midcap Fund and Quant Mutual Fund have reportedly bought shares during this quarter.

Chart Analysis:

From a technical standpoint, the stock price was 1138 in July 2021 and is currently trading at 673. The chart shows consolidation, and a breakout is expected once the monthly stock price closes above 700.

Just Dial Ltd Business Model:

Just dial operates as a local search engine and business directory service, connecting users with local businesses and services through a variety of platforms. The company generates revenue through paid listings, advertising, and other value-added services.

Reliance Retail Ventures invested in Just dial to expand its digital offerings and strengthen its position in the e-commerce market. Just dial’s local search engine and business directory service complement Reliance’s existing retail and e-commerce businesses, allowing the company to provide a more comprehensive range of services to its customers. Additionally, Just dial’s extensive database of local businesses and services can be leveraged by Reliance to drive traffic and sales to its own platforms.

Also Read: Investor presentation on Financial Results (Standalone and Consolidated) for the quarter and financial year ended March 31, 2023

Disclaimer:

The information provided in this article is for educational purposes only and should not be construed as investment advice. Investors should conduct their own research and consult with a licensed financial advisor before making any investment decisions.