Hyperlocal Search Engine JustDial Reports 26.5% YoY Rise In Net Profit For Q2 FY 18

Hyperlocal Search Engine JustDial Reports 26.5% YoY Rise In Net Profit For Q2 FY 18

SUMMARY

As Per The Earnings Report, The Company’s Total Operating Revenue Stood At $30 Mn

Mumbai-based hyperlocal search engine JustDial has announced its financial and operating results for the fiscal quarter ending on September 30, 2017. As per the filings, the company saw a net profit of $5.7 Mn (INR 37.5 Cr), claiming a 26.5% Y-o-Y rise for Q2 FY 18. However, the net profit declined by 1.8% in comparison to $5.8 Mn (INR 38.2 Cr) in Q1 FY 18.

Further, as per its earnings release, the company generated a total operating revenue of $30 Mn (INR 194.5 Cr), a 7.9% Y-o-Y and 2.3% Q-o-Q growth from the same quarter last year.

Also, the company reported a rise of 14.7% in cash, equivalents and short-term investments, leading to an amount of  $160.7 Mn (INR 1,045.3 Cr) in Q2 FY18, compared to $140 Mn (INR 912.3 Cr) as on September 30, 2016.

JustDial was founded in 1994 by VSS Mani. The official website was launched in 2007. It is a local search firm that provides both B2C and B2B listings of small and medium businesses across 240 cities in India. The search service is available to users across multiple platforms, such as internet, over telephone (voice) and text (SMS).

In January 2016, JustDial raised $18 Mn (INR 120 Cr) from Singapore-based Private equity investment firm Nalanda Capital. With the investment, Nalanda’s total stake in the company increased by 2% to 7.58%. The other two major shareholders of JustDial are Sequoia Capital and SAIF Partners. Tiger Global, EGCS and SAP Ventures have also invested in the company.

JustDial: Once Valued At $1 Bn; Now Staring Into An Uncertain Future

JustDial opened its IPO in 2013, which at the time was hailed as the biggest issue since Bharti Infratel Ltd’s IPO in December 2012. In 2014, SAIF Partners sold 2.4% stake in JustDial which helped it earn returns of over 30 times in comparison to funds that it had invested. However, over the last one year, the company’s performance in the stock market has been steadily declining.

At its peak, the share price of the local search engine reached $9.5 (INR 619) in March last year, before slumping to $5 (INR 319) in December. The numbers have improved slightly in the last couple of months, with its stock fetching $7.3 (INR 477.95) on the BSE as on Monday (November 6).

Recently, in July, the board approved the search company’s open market buyback proposal. As part of the buyback, which opened on August 9 and closed on September 25, JustDial bought 2.2 Mn of its own equity shares at $5.7 (INR 374.18) apiece, aggregating $12.8 Mn (INR 83.85 Cr) in the process.

In order to get a level playing field with its fellow hyperlocal delivery apps, JustDial also reportedly made a soft entry into India’s ecommerce space in May 2015 through tie-ups with restaurants, grocers, pharmacies and electronic stores for home delivery. The service started with Andheri in Mumbai and slowly expanded to other areas of the city.

In a bid to further enhance profit, the company also came up with a ‘one-stop’ app in February 2016, with plans to take JustDial global along with its ecommerce model. But despite all efforts, once valued at $1 Bn in 2013, JustDial has still been struggling to tackle competition from its immediate rivals UrbanClap, HouseJoy and LocalOye. At the same time, even biggies like Flipkart (with its one stop app) and Google (Areo) are also stepping ahead to take a bite in the Indian hyperlocal pie.

 To add to its trouble, the company lost its second CTO in a year, RV Raman, in October 2016. Although it reported a 26.5% Y-o-Y growth in net profit in Q2 FY18, the figures slumped in comparison to the first quarter of the current fiscal year. Whether the search engine platform manages to stay afloat amidst increased competition and declining profits is something that will become apparent in the coming months.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Hyperlocal Search Engine JustDial Reports 26.5% YoY Rise In Net Profit For Q2 FY 18-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Hyperlocal Search Engine JustDial Reports 26.5% YoY Rise In Net Profit For Q2 FY 18-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Hyperlocal Search Engine JustDial Reports 26.5% YoY Rise In Net Profit For Q2 FY 18-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Hyperlocal Search Engine JustDial Reports 26.5% YoY Rise In Net Profit For Q2 FY 18-Inc42 Media
Hyperlocal Search Engine JustDial Reports 26.5% YoY Rise In Net Profit For Q2 FY 18-Inc42 Media
You’re in Good company