The call was addressed by Managing Director V S S Mani.

Highlights of the call

In June 2016 quarter sales grew 8% to Rs 190.04 crore. PAT fell 2% to Rs 38.16 crore.

On a like-for-like basis, revenue for Search business grew 11% to Rs 190.2 crore.

Sequentially, Search Revenue increased 4.7% QoQ.

Total Operating Revenue stood at Rs 190.0 crore, up 7.8% YoY and 4.6% QoQ.

OPM stood at 17.1% witnessing a growth of 51 bps YoY and a decline of 60 bps QoQ.

Adjusted OP, excluding ESOP expenses (Rs 4.83 crores in 1Q FY18, Rs 5.28 crore in 1Q FY17 and Rs 3.70 crore in 4Q FY17) stood at Rs 37.3 crore, up 8.1% YoY and up 4.1% QoQ.

Adjusted OPM (excluding ESOP Expenses) stood at 19.7%, up 6 bps YoY and down 9 bps QoQ.

Unearned Revenue stood at Rs 290.4 Crores as on June 30, 2017, up 20.0% YoY and up 5.9%

QoQ.

The company approved the proposal to buyback of shares from the open market for a total amount not exceeding Rs 83.91 crore, and at a price not exceeding Rs 700 per equity share.

Cash and Investments stood at Rs 1,086.2 crore as on June 2017 against Rs 863.5 crore as on June 2016 and Rs 1,017.2 crore as on March 2017.

Unique Traffic Visitors for the quarter stood at 100.5 million, up 32.5% YoY and 15.9% QoQ.

Around 62.4% traffic originated on mobile platforms, 27.8% on desktop/ PC and 9.8% on Voice platform.

Total Active Listings stood at 18.8 million as on June 2017, up 13.3% yoy, 5.1% qoq.

On net basis 906,457 listings were added to the database during the quarter.

Out of total listings, 7.8 million listings were geocoded as on June 2017, up 28.3% YoY and up 14.1%

QoQ.

Total images in listings stood at 35.6 million, up 58.5% YoY and up 12.1% QoQ.

Total Ratings & Reviews stood at 73.1 million at the end of quarter, up 16.8% YoY and up 3.8% QoQ.

Paid Campaigns at the end of quarter stood at approx. 435980, up 12.0% YoY and up 0.1% QoQ.

Cumulative App Downloads at the end of quarter stood at 15.4 million, up 52% YoY and up

16.2% QoQ.

Average 26,533 App Downloads per day were witnessed during the quarter, up 243.6% YoY and 34.8% QoQ.

Just Dial has also launched JD Pay, a unique solution for quick digital payments for its users and vendors.

Justdial has also initiated ‘Search Plus' Services for its users. These services aim at making several day-to-day tasks conveniently actionable and accessible to users from one App. With this step, Justdial is transitioning from being purely a provider of local search and related information to being an enabler of such transactions.

Justdial has also recently launched JD Omni, an end-to-end business management solution for SMEs, through which it intends to transition thousands of SMEs to efficiently run business online and have their adequate online presence via their own website, mobile site.

The company had done price hike in entry level products which led to qoq growth in paid campaign.

The focus will be on growing usage of various products.

Realization in Tier II and III cities are lower in paid campaign.

Going forward the management hopes of good campaign growth and better realization/lesser decline in realization.

The management is confident that the growth will pick up going forward but cant give a time line.

Major chunk of growth will come from price listing or top cities.

JD Omni sale is zero as of now. The company hopes to either sell Omni as a standalone product or a bundled product.

In FY 2017 advertisement expenses was Rs 28 crore and out of this TV advertisement expenses were Rs 4.8 crore.

In June 2016 quarter advertisement expenses was Rs 5 crore and there was no TV advertisement expenses.

The company is not obsessed with spending Rs 100 crore on TV advertisement, which is its internal target. It will continue to spend in TV advertisement as long as traffic is growing because of the advertisement. The advertisement should also be result accretive.

As of now TV advertisement is going good for the company.

Top 11 cities accounted for 11% of sales. Tier II and III cities accounted for 21.5% of sales in June 2016 quarter.

Key categories are Movers and Packers, Pest Control, Real Estate and Car Hire.

Apart from the paid campaign the company is internally working on messenger which would help SMEs to directly contact buyers. The messenger is likely to have text and video capabilities.