Just Dial

Just Dial posted a disappointing set of Q2FY16 performance. A sluggish topline but a spurt in other income helped the company end the quarter with a better bottomline. Net revenue grew by less than 2% (YoY) and QoQ at Rs.171 crore while other income surged from Rs.7 crore to Rs.26 crore (QoQ). EBITDA for the quarter was down 18% (QoQ) at Rs.40 crore and margins dipped pretty sharply from 28.71% to 23.17%. Higher operating expenses on account of launch of SearchPlus and higher Employee expenses led to fall in OP.

Tax expense was down 25% (QoQ) and down 8% (YoY) and this helped shore up the net profit which was at Rs.46 crore, up 39% (QoQ) and up 48% (YoY). The good part – the company remains debt free. The bad part – the stock price has run much ahead of its fundamentals and the sluggish Q2 will correct this.