The company held its conference call for discussing performance for the quarter ended September 2015. Top management of the company addressed the meet.

Key highlights

For the quarter ended September 2015, the net sales have increased by 16% to Rs 171.27 crore. The growth was 20% if the company had not recognized revenue from opening deferred revenue in Q2 FY15. As of September 30, 2015, the company was conducting approximately 3,49,800 campaigns for paid advertisers, representing a growth of 18%. The company's database consisted of approximately 15.8 million listings, representing a growth of 9%. The Company currently has 27 search plus services live on the platform. Total unique visitors (across Voice, PC Internet, Mobile Internet) increased by 19% to 75.9 mn. OPM decreased by 571 bps to 23.2%. The net profit increased by 47% to Rs 46.30 crore due to rise in top-line, other income and fall in tax rate.

Top-line was affected as the company didn't hire sales force in Q2. At the same time, there was rationalization of premium products. The company is rationalizing pricing across categories to increase saleable inventory. The company has also not acquired new customers.

Rationalization has happen at later part of the quarter and its impact will be seen in coming quarters.

The mgmt said that it will take couple of quarters for acceleration to happen at top-line.

The OPM was lower due to lower growth of top-line and jump in employee cost due to increment in June.

New app had been received very well. 1.4 mn new users added after launch. Total download of app stands at 8.6 mn.

Formal launch of Search Plus will possibly happen in the next few months, with a promotional campaign expected to commence by end of CY2015.

The company has seen 40% increases in usage of app after launch of new app.

In Search plus app, improvement will be seen in transaction and logistic front. Going forward, small changes will keep adding to app.

Voice feature in app will be promoted soon.

The company has indicated Rs 100 crore of incremental advertising spend on Search Plus promotion over 2016-17.

Treasury income will be more or less similar to H1 in H2.

Hiring for sales will be there for next 2 quarters. The company will add 1000 more sales people. Evangelist has not yet recruited by the company

The company is not seeing any major impact from new vertical players in vertical categories. This is because Just Dial already has strong relationship with SMEs and service providers and doesn't think that any start-up, even with cash-burn, could compete with its reach and user engagement.