Just Dial (JUSTDIAL) Q4 17/18 earnings summary

Executive summary

• FY18 marked a turnaround after refocusing on core search; revenue, operating profitability and net profit all improved, alongside strong growth in visitors and listings.

• Strategy centers on growing users and SME participation, raising paid-listing monetisation and improving profitability, with expansion into Tier II and III markets.

Financial highlights

• FY18 operating revenue ₹781.8 crore, up 8.8% YoY; Q4 revenue growth returned to 10.3% after five quarters of single-digit growth.

• FY18 adjusted operating EBITDA ₹179.9 crore versus ₹125.5 crore in FY17; adjusted margin rose to 23.0% from 17.5%.

• FY18 PBT ₹193.9 crore, up 23.9% YoY; PAT ₹143.2 crore, up 18% YoY; basic EPS ₹20.97 versus ₹17.46.

• Operating cash flow rose to ₹226.1 crore from ₹136.2 crore in FY17; total income was ₹847.7 crore, up 5.2% YoY.

• Advertising and promotion spend increased to ₹66.4 crore from ₹32.1 crore in FY17.

Outlook and guidance

• Priorities: sustain user growth, add SMEs and paid listings, lift revenue per paid customer, and strengthen search capabilities and the user experience.

• Tier II and III cities contributed 19% of revenue in FY18; plans target a higher contribution through sales-force expansion and greater local reach.

• Planned investments in technology, marketing and brand building; no quantified financial forecast was stated.