Mumbai-based hyperlocal search engine Just Dial has reported a significant jump in its net profit for the fourth quarter of the financial year 2022-23 (FY23) due to a strong recovery from the pandemic-led slump. The company’s net profit surged 278.4% year-on-year (YoY) to INR 83.8 Cr during Q4 FY23. This represents an 11.3% increase from INR 75.3 Cr in Q3 FY23. The company’s operating revenue also rose by 39.5% YoY to INR 232.5 Cr in Q4 FY23, with a 5% increase from INR 221.4 Cr in Q3 FY23.
Active Listings and Unique Visitors Increase
Just Dial’s total active listings grew by 14.4% YoY to 36.5 Mn as of March 31, 2023. The company added 14.8 Lakh listings during the quarter under review. Meanwhile, the number of unique visitors to the platform increased by 10% YoY to 159.3 Mn in Q4. The company’s adjusted EBITDA, excluding ESOP expenses, stood at INR 35.6 Cr in the reported quarter, while the adjusted EBITDA margin stood at 15.3%.
Just Dial’s Expenses
Just Dial’s total expenditure increased to INR 210.9 Cr in Q4 FY23 from INR 181.4 Cr in the corresponding quarter of the previous year. Employee benefit expenses alone accounted for 82% of the expenses. The company spent INR 172.3 Cr on employee benefits in Q4 FY23 compared to INR 143.5 Cr in the year-ago quarter. Just Dial ramped up hiring in the previous few quarters, increasing employee expenses. However, the company noted that operating expenses growth remained controlled in Q4 FY23, and operating leverage benefits are playing out.
Just Dial’s other expenses declined to INR 27.1 Cr in Q4 FY23 from INR 29.2 Cr in the corresponding quarter last year. The company spent more towards advertising and sales promotion, a total of INR 50.5 Cr, in the year ended March 31, 2022, to promote its B2B marketplace JD Mart in IPL 2021.
Overall Profit and Operating Revenue Increase
Just Dial’s overall profit in FY23 surged by almost 130% YoY to INR 162.7 Cr. At the same time, its operating revenue grew by over 30% to INR 844.7 Cr in the fiscal year. Reliance Retail acquired the company in September 2021. In December of that year, Reliance Retail sold 16,86,119 shares or a 2% stake in Justdial in the open market.
Shares of the company ended 2.5% higher at INR 665.80 on the BSE on Tuesday. This was a day after the company reported its results. The positive response to Just Dial’s financial performance reflects investor confidence in the company’s ability to recover from the pandemic slump and deliver profitable growth in the coming quarters.
About Just Dial
Just Dial provides local search-related services to users in India through multiple platforms, including via website, mobile app, over the telephone, and text message services. The company’s platform allows users to search for products and services in their local area and provides information on businesses, contact details, and reviews.
Just Dial has been a prominent player in the Indian hyperlocal search market for over two decades. The platform allows users to search for various services. This includes restaurants, hospitals, and plumbers and provides relevant contact information for these businesses. Over the years, the company has established itself as a trusted source of information for users. It has a reported database of over 30 million listings. The platform also allows businesses to create profiles and reach potential customers. Thus, making it a popular choice for small and medium-sized enterprises in India.
In September 2021, Reliance Retail, a part of the Reliance Industries conglomerate, acquired Just Dial. This acquisition strengthened Reliance’s position in India’s e-commerce and hyperlocal search engine market. In December last year, Reliance Retail sold 16,86,119 shares or a 2% stake in Justdial in the open market.