Key highlights

• For the quarter ended March 2015, the net sales have increased by 26% to Rs 156.28 crore. As of March 31, 2015, the company was conducting approximately 3,31,200 campaigns for paid advertisers as compared to 2,62,150 campaigns as of March 31, 2014, representing a Y-o-Y growth of 26%. The database consisted of approximately 15 million listings as compared to 11.8 million listings as of March 31, 2014 representing a Y-o-Y growth of 27%. The Company currently has 24 search plus services live on the platform. OPM decreased by 298 bps to 27.1% due to increase in employee cost. The profit before tax and EO has increased by 39% to Rs 63.62 crore. The net profit increased by 38% to Rs 47.16 crore due to rise in top-line, other income and fall in tax rate.

• The number of Search Plus services live on its platform increased to 24 in Q4 which is a bill payment and recharge.

• The company has tied up with over 300,000 service providers to provide 24 Search Plus services and is aiming to take it to more than 1 mn who are expected to make payment to the company in the coming years.

• Revenue from top cities grew 20% while growth in other citifies was also faster. Tier II and Tier III cities contributed 11% to revenue in FY15. Mumbai and Delhi together contributed 41% to revenue.

• The company changed the salary structure of its employees, pension liability increased by Rs 2.92 crore, which was provided for in Q4. It maintained CTC levels of its employees, but increased their base salary. This has operating impacted the margin in Q4.

• As of FY15 end, 6.3 mn JD apps were downloaded.

• The company spends Rs17 crore on advertisements in FY15.

• The company increased free listings by healthy 27% to 15 mn in FY15. The mgmt believes that it has the potential to increase free listings to 20 mn. However, in the near term, it wants to consolidate free listings and focus on their monetization.

• The company revamped the entire look and feel of its application and now it will improve the website to improve customer engagement and after that it will roll out revamped Search Plus service in August 2015.

• The company will soon launch on-demand services like availing the services of plumber, carpenter, electrician etc, in an hour's time.

• To allow micro payment and also allow clients to use any instrument like credit card, debit card etc even if its vendors don't have a support system, it is developing JD Cash Valet. JD Cash Valet will be operational by Q2 FY16.

• The company will provide product prices like other online players and also of offline players on its website and smart application in future, so that customers can decide the best option. The company will get commission for every lead generation, even in case of purchases through other online portals.

• Average ticket size of online purchases is around Rs 17000.

• The company is creating hyper local delivery capabilities to improve time-bound delivery within a radius of 2 km. Test launch has been carried out in two pin code areas and it is planning to cover 15-20 pin code areas by the end of Q2 FY16. Initially, it will build its own team for hyper local delivery and after the pilot project there will be outsourcing for large-scale rollout. Currently, it is not able to cater to some grocery stores, medical stores, restaurants etc, as they lack delivery capability. If it has in-house delivery staff, it can drive business from these vendors and can also charge an added commission. In addition, it can hide vendors' identity to customers and consequently its ability to command a higher commission will increase. As the company handles the delivery of multiple products, its utilization of delivery manpower will be high and thereby delivery costs will be very low.

• Other income in FY16 will be similar to FY15 level.