Three points you will get to know in this article:
- The company’s operating revenue grew by 27% to INR 260.6 Cr, but net profit declined by 14% sequentially due to mark-to-market losses on treasury portfolio.
- Justdial’s net profit rose by 37.5% to INR 71.8 Cr in Q2 FY24 compared to the previous fiscal year.
- Justdial earns revenue through paid advertisements, premium listing packages, and add-on products. The company reported an increase in total active listings and active paid campaigns.
In the second quarter of the financial year 2023-24, Mumbai-based hyperlocal search engine, Justdial, demonstrated robust financial performance. The company achieved a noteworthy 37.5% surge in net profit, reaching INR 71.8 Cr, compared to the previous fiscal’s corresponding period where it stood at INR 52.2 Cr.
Justdial’s operational revenue sustained impressive growth, witnessing a substantial 27% increase to INR 260.6 Cr from INR 205.3 Cr in the same quarter of the previous year.
However, when examining the figures sequentially, there was a discernible dip in Justdial’s net profit, experiencing a nearly 14% decline from the preceding quarter (Q1 FY24) where it reported INR 83.4 Cr. This decrease can be attributed to the impact on other income, influenced by mark-to-market (MTM) losses on the treasury portfolio. This downturn was a result of significant rises in bond yields during that specific quarter.
“While Justdial experienced a positive trend in its operational revenue, which grew by 5.5% sequentially, reaching INR 247 Cr, there was a notable 28.8% sequential decline in its other income, which amounted to INR 57.9 Cr.
In the second quarter of the fiscal year 2024, the company saw a modest 2.5% year-on-year increase in its other income. This category encompasses fair value adjustments related to financial instruments and profits generated from the sale of investments.
Explaining the fluctuations, Justdial attributed the slight rise in bond yields during the second quarter of FY24 to reduced mark-to-market (MTM) gains compared to the yield of maturity (YTM) of the portfolio. In a statement, the company highlighted the impact of these changes on its financial performance.”
How Justdial Earns Revenue?
The company primarily generates revenue through paid advertisements placed by businesses on its platform, premium listing packages, and additional products such as banners, payment features, and more.
Justdial reported an 18.6% year-over-year increase and a 5.8% sequential growth in its total active listings, reaching 40.2 million as of September 30, 2023. Conversely, the number of active paid campaigns at the end of Q2 saw a year-over-year increase of 11.3%, totaling 5.61 lakh.
In Q2 FY24, the total traffic reached 171.7 million, marking a 9.7% year-over-year growth. The company specified that 86.1% of the total traffic originated from mobile platforms, 10.5% from desktop and PCs, and 3.4% from its voice platform.These figures illustrate the company’s robust performance and continued growth in its various business segments.
“Justdial reported a notable deferred revenue element of INR 468 Crores in the quarter under examination, marking a significant 23.6% year-over-year increase. In the same quarter of FY24, Justdial disclosed a robust 20.8% year-on-year rise in total collections, reaching INR 278.4 Crores, according to the company’s statement. This underscores the company’s positive trajectory and financial growth during the period.”
Zooming Into Expenses
On the financial front, the company allocated a total of INR 226.4 Crore in the quarter under examination, marking a 14.6% surge from the INR 197.5 Crore recorded in Q2 FY23.Significantly, employee benefit expenditures took the lion’s share, reaching INR 185.4 Crore in Q2 FY24 compared to INR 162.5 Crore in the corresponding quarter of the preceding year.
Nevertheless, the percentage of operating revenue dedicated to the company’s employee cost witnessed a decline, dropping from 78% in the year-ago quarter to 71.2% in the current quarter under review.Justdial experienced a notable increase of 58.4% year-over-year in its depreciation and amortization expense, reaching INR 12.2 Crore in Q2.
The disclosure of Justdial’s Q2 financial statement occurred post-market hours on Friday, October 20. Closing the week’s final session, the company’s shares concluded 0.9% lower at INR 753.2 on the BSE.
Justdial, a Mumbai-based hyperlocal search engine, reported a 37.5% increase in net profit to INR 71.8 Cr in Q2 FY24. The company’s operating revenue also showed strong growth, rising by 27% to INR 260.6 Cr. However, sequential net profit declined by almost 14% due to mark-to-market losses on the treasury portfolio. Justdial earns revenue through paid advertisements, premium listing packages, and add-on products. It experienced growth in total active listings, active paid campaigns, and total traffic. The company’s deferred revenue and total collections also increased. On the expenditure front, employee benefit expenses constituted the largest portion.
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