Justdial’s net profit decreased by about 14% from INR 83.4 Cr in Q1 every quarter. Justdial’s operating revenue increased quickly, increasing 27% YoY to INR 260.6 Cr in the second quarter of FY24.
As of September 30, 2023, the hyperlocal search engine’s total active listings rose 18.6% year over year and 5.8% sequentially to 40.2 Mn.
During the second quarter of the fiscal year 2023-24, Justdial, a hyperlocal search engine headquartered in Mumbai, posted a 37.5% rise in net profit, reaching INR 71.8 Cr compared to INR 52.2 Cr in the corresponding period of the prior year.
The company’s operational revenue also showed strong growth, surging by 27% to INR 260.6 Cr from INR 205.3 Cr in the same quarter of the previous year, underscoring the continued robust expansion of the firm.
However, on a sequential basis, Justdial’s net profit decreased from INR 83.4 Cr reported in the prior quarter – Q1 FY24 – by roughly 14%, as other income was negatively impacted by mark-to-market (MTM) losses on the company’s Treasury portfolio at a time when bond yields were sharply rising.
Justdial saw a sequential increase in operational revenue of 5.5% from INR 247 Cr but a sequential decrease in other income of 28.8% to INR 57.9 Cr.
In Q2 FY24, the company’s other income increased by 2.5% yearly (YoY). Fair value gain or loss on financial instruments and profit from the sale of investments are examples of additional income.
According to a statement from Justdial, a slight increase in bond yields in 2Q FY24 led to lower MTM gains throughout the quarter compared to the portfolio’s yield of maturity (YTM).
How Does Justdial Make Money?
The company’s primary sources of income are the paid adverts that companies post on the site, as well as premium listing packages, add-on goods like banners, payment features, and other things.
Justdial said that as of September 30, 2023, the number of active listings climbed by 5.8% over the previous month and 18.6% over the year. On the other hand, its active paid campaigns increased by 11.3% YoY to 5.61 Lakh at the end of the second quarter.
171.7 Mn people traveled overall in Q2 FY24, an increase of 9.7% yoy. According to the firm, mobile platforms accounted for 86.1% of all traffic, followed by desktop and personal computers with 10.5% and its voice platform with 3.4%.
Deferred revenue was another component of Justdial’s business; in the quarter under review, it increased by 23.6% YoY to INR 468 Cr. According to Justdial, its overall receipts rose 20.8% YoY to INR 278.4 Cr in the second quarter of FY24.
Zooming in on Costs
During the assessed period, the company’s total expenses amounted to INR 226.4 Cr, marking a 14.6% increase from the INR 197.5 Cr reported in the second quarter of the fiscal year 2023-24. The bulk of these expenses pertained to employee benefits, amounting to INR 185.4 Cr in the second quarter of FY24, a contrast to INR 162.5 Cr in the prior year’s corresponding period.
Of particular note is the company’s labor cost reduction when assessed as a percentage of operational revenue. These costs decreased from 78% in the preceding quarter to 71.2% in the current quarter. In addition, the depreciation and amortization expenses for Justdial exhibited a significant year-over-year increase, climbing to INR 12.2 Cr in Q2, marking a substantial 58.4% rise.
On Friday, October 20, Justdial released its Q2 financial report after market close. On the BSE, its shares ended the week’s final trading day 0.9% lower at INR 753.2.
[Source of Information: Inc42.com]
