JustDial Rings In Higher Revenues In Q1FY14

JustDial, an online search engine company that provides services within India, posted its June quarter result of FY14 on August 3. The results were impressive on the topline and bottomline front YoY. The company’s revenues came in at Rs 105 crore, up 28% from that of Rs 82 crore in the similar period last fiscal.

On the expenditure side, JustDial’s total operating expenses for the quarter were at Rs 68 crore, 20% higher than its expenses in Q1FY13. What contributed to this was the increase in its employee benefit expenses and other expenses. Following the addition of new workforce, the employee expenses increased by 20% to Rs 49 crore. Its other expenses, which include advertising & promotional activities expenditure, went up to Rs 19.6 crore in the June 2013 quarter as compared to Rs 16.4 crore in the last fiscal corresponding period.

Further, higher revenues from its online search services has boosted the operating income by 47%, which grew to Rs 36.26 crore. Although the company's tax expenses jumped by 50% to Rs 11 crore in the said quarter on YoY basis, the impact has been reversed by healthy growth in its other income. The company's bottomline grew by 72% on a yearly basis to Rs 28 crore from just Rs 16 crore in Q1FY13. This translates into expansion of its operating margins and net margins by 451 basis points and 688 basis points respectively.

At present, the company's shares are trading at an annualised PE of 56.6x. The share price declined by 2% in response to the June quarter result announcement, and is currently at Rs 681.