Key highlights

For the quarter ended September 2017, sales have increased by 8% to Rs 194.5 crore. The net profit increased by 26% to Rs 37.5 crore.

Just Dial attributed the soft revenue growth to GST implementation related headwinds for small and medium enterprises, its key client base. It also acknowledged facing issues with clients, especially in the tier1 cities, who appear unsure on the scale of leads generated through the Just Dial services and thus opting for monthly subscriptions rather than annual ones.

Traffic (Unique Visitors) for the quarter stood at 105 million, up 37.1% YoY and 4.5% QoQ. 65.7% traffic originated on mobile platforms, 25.2% on desktop/ PC and 9.1% on our Voice platform

Total Active Listings stood at 19.8 million as on September 30, 2017, an increase of 17% YoY, 5.4% QoQ. 1,021,158 listings were added (net) to the database during the quarter. Out of total listings, 9.2 million listings were geocoded as on September 30, 2017, up 48.5% YoY and up 18% QoQ. Total images in listings stood at 38.5 million, up 51.4% YoY and up 8.1% QoQ.

Total Ratings & Reviews stood at 76.1 million at the end of quarter, up 17.4% YoY and up 4.1% QoQ.

Paid Campaigns at the end of quarter stood at 439,700, up 7.6% YoY and up 0.9% QoQ.

Cumulative App Downloads at the end of quarter stood at 17.3 million, up 61.3% YoY and up 12.4% QoQ. Average 23,871 App Downloads per day were witnessed during the quarter, up 174%

YoY and down 10.0% QoQ.

Unearned Revenue stood at Rs 277.4 crore as on September 30, 2017, up 13.2% YoY and decline of 4.5% QoQ.

Employee costs declined by 3.2% yoy, led by a sharp reduction in headcount (down 7.7% yoy), as well as one time write-back of ESOP expense due to employee exits.

The sharp decline in employee count has been driven by a concerted effort to drive efficiencies. As a result, headcount has been rationalized in departments such as database management, call centers for voice call support, etc.

The mgmt believes that there is a case for a bundled product offering to SMEs – advertising package on Just Dial for improved visibility as well as own website for the SME. They believes this bundle, offered as a value for money package, will be perceived well among the SMEs

Tier II/III cities accounted for 19% of revenues and 40-42% of campaigns. Tier II/III cities are growing faster, though average ticket size per SME is smaller.

Just Dial attributed Q2 margin expansion to rationalization of infrastructure (servers/facilities). Management confidence of maintaining margins around current levels going forward.

It has taken a price-hike in the entry level products ahead of the launch of the ad campaign. However, it expects the blended realization could remain on a downward trend given the rising share of Tier II and Tier III cities – 19% revenue share in 2QFY18 vs. 18% in 1QFY18.

The company spent Rs 40 crore on advertising (across all media) in 1H FY18, and expects this intensity to continue. The company believes that TV advertising in general has seen a phenomenal response, evidenced by the sharp increase in traffic

Cash and Investments stood at Rs 1045.3 crore as on September 30, 2017 compared to Rs 912.3 crore as on September 30, 2016 and Rs 1086.2 crore as on June 30, 2017.