Key highlights

• For the quarter ended June 2015, the net sales have increased by 25% to Rs 168.62 crore. As of June 30, 2015, the company was conducting approximately 3,46,900 campaigns for paid advertisers as compared to 277,950 campaigns as of June 30, 2014, representing a Y-o-Y growth of 25%. The database consisted of approximately 15.3 million listings as compared to 14.1 million listings as of June 30, 2014 representing a Y-o-Y growth of 9%. The Company currently has 25 search plus services live on the platform. OPM increased by 354 bps to 28.7%. The net profit increased by 18% to Rs 33.17 crore due to rise in top-line and OPM.

• Just Dial's Search maintained a strong growth trajectory. Searches were up 33% with strong growth across business segments. Tier-II/III cities are growing at a very fast pace, supporting 20% growth for the top-5 cities.

• At the end of the quarter, the company had 10789 employees. It added 1200 employees in the quarter, primarily in sales around 650 and service around 400. On the sales side, more employees are likely to be added. Gradually, the number may decrease because of automation.

• The mgmt said that it will launch master JD Search Plus app by September 2015, postponed by a month, as it aims to improve user interface and experience of the offering. It may invest a few more quarters to handhold and educate SMEs before starting to monetize the Search Plus offering. It continues to refine is master app feature so as to leverage it as a one-stop solution for its user needs.

• The mgmt said that searches will perish in the absence of Search Plus services. In the absence of Search Plus services, growth in core searches will moderate as users migrate to transaction based services. Hence, Search Plus is necessary for future growth of the company and at the same time Search Plus will improve customer engagement and open up more revenue streams. Therefore, revenue growth will be healthy post successful monetization of Search Plus.

• The company will spend Rs100 crore on advertising of Search Plus services

• Investing on new initiative JD Omni System (plug and play cloud system), which will be launched in September 2015.

• The company is focusing more on e-commerce; currently 99% of its revenue is from search monetization. No single category contributes to more than 3% of revenue.

• There are 500 employees in building technology and the company has a campus in Bangalore

• The mgmt said that all expenses like product development, Search Plus expenses etc, are charged to P&L account and the company doesn't capitalize them. The margins are expects to stabilize around 30%.

• Share buyback was to reduce the cash level of the company. It is awaiting the Reserve Bank of India's nod for the same and it should happen in August 2015. The intent is to return cash to the investors, instead of going for unwanted and non-value added acquisitions.

• There are not many high quality companies on its radar for acquisition.

• The company expects more revenue from new products, Omni channel and other new initiatives expected in future.