Key highlights

For the quarter ended September 2014, the net sales have increased by 31% to Rs 147.40 crore. The company was conducting approximately 296100 campaigns for paid advertisers, representing a Y-o-Y growth of 24%. The database consisted of approximately 14.5 million listings, representing a Y-o-Y growth of 44%. The Company currently has 20 search plus services live on the platform. OPM decreased by 237 bps to 28.9%. The net profit increased by just 10% to Rs 31.49 crore due to fall in OPM, rise in deprecation & tax rate.

Growth in revenues was underpinned by healthy uptick in paid campaigns and increased realizations per paid campaign

OPM was down 237bps led by an Rs 3.2 crore of one-off spend towards employee stock options.

Other income for the quarter was down by 2% primarily due to non-recognition of capital gains as securities were rolled over from 1 year maturity to 3 years. This was done due to change in tax norms in recent budget which entailed 3 year period as a minimum for recognizing long term gains as against 1 year earlier.

The quarter didn't see increased selling, general, and administrative spends towards Search Plus as was anticipated earlier. The mgmt said the mass communication drive for its Search Plus Services has been pushed to Q4.

The Company currently has 20 search plus services live on the platform. The company is launching a plethora of products under the Search Plus platform like ‘Just Dial Guaranteed', ‘Just Dial Cash', Online cab booking, etc. The mgmt is focused on making available the best set of services/conveniences to consumers, build a habit for using these services and create a unique eco-system. Monetization is distinctly not a near term target and mgmt believes it will happen at a later stage.

Last quarter, company launched Hotels services in partnership with various online portals like bookings.com and makemytrip.com and movie booking service in partnership with Book my show.com.

In reverse auctions, the company is generating 4700 - 5000 queries a day, of which an impressive 70% of transactions are converted into trade. Also, it has launched JD Maps, replacing Google Maps, for directions on the Just Dial platform

The company's mobile APP has 98% organic downloads. The mobile APP hosts unique voice search feature, which is amongst the best, Voice search has an accuracy of 95%.

Total employees as of Q2 FY15 stood at 8899 as against 8213 in Q2FY14 and 9975 employees in Q1 FY15. Employee counts during the quarter declined by 1000 largely due to rationalization in employees with respect to performance. The mgmt guided for a net addition of 1000 - 1500 employees in FY15.

ESOPs have been allotted at price of Rs 80, with vesting over a period of 7 years, hence the ESOP cost has started to accrue from the current quarter. The company has granted 3.5 lakh shares (total pool is 7 lakh shares) under the ESOP. ESOP expenditure will average Rs 3.5 crore every quarter going forward.

The board of directors recently approved an enabling resolution to raise up to Rs 1000 crore The mgmt is looking at organic and inorganic expansions in international markets like the UK, US, Canada, and other emerging markets.

Current cash is around Rs 740 crore taking total cash balance to Rs 1700 crore post fund raising