Q3 appears to be a particularly weak quarter for JustDial, at least when it comes to the Internet part of its business: PC Internet visits (-11.3%) and searches (-11%) both declined sequentially for the Quarter ending December 31st 2013 for the listings and search giant, pulling down both total usage (by 5.7%) and total searches (by 5.8%). This mirrors a trend shown by the company for the same quarters last year, where Internet visits declined 1.97% and Internet searches reduced by 10.39%.
JustDial now operates at almost 25.52% higher in terms of visits and 42.29% higher in terms of searches than the same quarter last year. However, what should worry the company is that its Voice/SMS searches declined 5.3% quarter on quarter, even though for the same two quarters last year, voice searches had grown by around 2%.
Justdial is making more money. The company ran substantially more campaigns in Q3-FY14: 249,600 campaigns for the quarter, up 25.9% from the same quarter last year, and 6.4% up quarter on quarter, which helped grow total income by 25.92% year on year. Quarter on quarter, campaigns increased by 4.6%, while total income grew 6.4% to Rs 119.68 crore. Year on year, Justdial reported a revenue growth of Rs 25.92%. As per our calculations, JustDial makes Rs 4802 per campaign, and this has declined year on year by 1.58%, but grown 1.7% quarter on quarter.
Profit for the company increased by 3.8% quarter on quarter to Rs 29.75 crore, 86.4% higher than the same quarter last year. Our Net Profit margin was 23% in Q3FY14 as compared to 16% in Q3FY13. Operating EBIDTA increased by 40% to Rs 33.35 crore (Y-o-Y) from Rs 23.75 crore. Operating EBIDTA margin increased to 28% in Q3FY14 as compared to 25% in Q3FY13.
At 8683, the company has 5.7% more employees than it had last year, employee cost is now 27.36% higher year on year at Rs 59.59 crore. Income per employee was Rs 1.38 lakh, Rs 0.6% higher than last year.
Cash and Investments for the company were Rs 608 crore at the end of the quarter, as compared to Rs 476 crore as at December 31, 2012.
The broad trends for JustDial, based on data provided:
– Number of searches per visit on PC and Mobile Web are growing
– Income per campaign is flat
– Total number of listings has grown
– Voice searches grew year on year, but declined quarter on quarter.
JustDial is making a effort to increase margins by enabling transactions for businesses, an approach it refers to as ‘Search Plus’. Search Plus allows table reservations at restaurants, food order, doctor appointments, flower delivery, laundry pickup, grocery shopping and pharmacy supplies, among other things.
Search Plus Services will also facilitate the purchase of various branded goods such as mobile phones, camera, among others that would be sold by the neighborhood stores participating through the platform. Just Dial will be neither holding inventory nor delivering the products. It will however be offering price difference between these vendors along with a rating system. In an earlier report, we had mentioned that JustDial has already started educating the vendors on this service but there will be some initial time lag between vendors adopting the service. Until then, the service will work like a quick quote service wherein users can request for a quote and get competitive quotes from vendors through SMS/email.
The company says that “The early user adoption has been encouraging and the company is focused on improving customer experience and expanding the breadth and depth of these services. On the product side, this is a key area of focus for the company.”
Download: Financials / Press Release