Just Dial (JUSTDIAL) Q4 16/17 earnings summary

Executive summary

• FY 2016-17 revenue grew, while profit and adjusted operating EBITDA margin fell amid increased sales and technology hiring, Tier II/III expansion, and advertising spend.

• Strategy refocused on core local search and a five-pillar online-services offering for MSMEs, backed by engagement, efficiency, expansion, and execution initiatives.

Financial highlights

• Revenue from operations rose 7.6% YoY to ₹7,186.10 mn; total revenue, including other income, increased 7.8% to ₹8,056.73 mn.

• PAT fell 15.0% YoY to ₹1,213.42 mn; PBT declined 19.0% to ₹1,564.83 mn.

• Other income increased 8.8% to ₹870.63 mn, supported by higher tax-free bond investments and related interest and fair-value gains.

• Operating cash flow was ₹1,362.01 mn versus ₹1,479.49 mn in FY 2015-16; advertising and promotion spend rose to ₹321.14 mn from ₹252.76 mn.

Outlook and guidance

• Priorities are to regain historical growth through core Search, deeper database and paid-listing penetration, and stronger execution of the five-pillar internet strategy.

• Expansion focus includes Tier II/III cities, particularly ~30 identified markets; marketing and communication spending is expected to remain aggressive.

• Growth opportunity is tied to rising internet and mobile use, lower data tariffs, and MSME digitisation; no quantified financial guidance was stated.