Dialled the wrong number! Just Dial profits fall 42%

Local search engine company Just Dial announced its third quarter results on Thursday before markets opened. The company showed a slow increase in net revenue and substantial decrease in net profit this quarter. It provides local search and related services to users in India through multiple platforms, such as Internet; mobile Internet; over the telephone (voice); and text (SMS).

On financial front the net revenue from operations of Justdial reached Rs 171.33 crores in Q3FY16 compared to Rs 171.26 crores in Q2FY16, an increase of 0.03 per cent quarter on quarter (QoQ). The EBITDA stood at Rs 37.40 crores this quarter compared to Rs 39.72 crores in Q2FY16, a decrease of 5.84 per cent QoQ. The EBITDA margin stands at 21.82 per cent this quarter compared to the margin of 23.19 per cent in Q2FY16. The net profit stands at Rs 27 crores in Q3FY16 compared to Rs 46.3 crores in Q2FY16, a decrease of 41.68 per cent QoQ. The substantial decrease in net profit is due to the decrease in other income by 63.55 per cent from last quarter. Other income this quarter stands at 9.57 crores compared to 26.26 crores in Q2FY16. 

On a yearly basis the net revenue from operation increased by 10.95 per cent from Rs 154.42 crores in Q3FY15. The EBITDA decreased by 25.36 per cent YoY. The EBITDA margin stands at 21.82 per cent compared to 32.45 per cent in Q3FY15. The net profit decreased by 16 per cent YoY. 

The nine month ending consolidated net revenue from operations increased by 17.05 per cent and reached  Rs 511.22 crores, compared to Rs 437 crores for the same period last year. The net profit for the same nine month period stood at Rs 106.47 crores, compared to 91.73 crores, an increase of 16.06 per cent from the same period last year. 

Following the results the scrip has tumbled by 7.60 per cent and now it is trading at Rs 725. In last one year the stock lost half of its value. Contrarily the Foreign Institutional Investment (FII) in company increased to 43.84 per cent in Q3FY16 compared to 40.31 per cent in Q2FY16. The total Institutional Investment in company increased to 62 per cent this quarter from 42.64 per cent in Q2FY16.