Just Dial Shares Surge to 9-Year High Following Strong Q1FY25 Earnings Report
Shares of Just Dial have reached a 9-year peak, trading at Rs 1,189.95—a remarkable 15% increase—on heavy trading volumes. This surge comes in the wake of the company reporting a substantial 69% year-on-year (YoY) rise in net profit for the first quarter of fiscal 2025 (Q1FY25). The company’s net profit climbed to Rs 141.2 crore, up from Rs 83.4 crore in the same quarter last fiscal year.
Key Financial Highlights
| Metric | Q1FY25 | Q1FY24 |
|---|---|---|
| Net Profit | Rs 141.2 crore | Rs 83.4 crore |
| Revenue from Operations | Rs 280.5 crore | Rs 247 crore |
| Operating Profit | Rs 80.5 crore | Rs 36.6 crore |
| EBITDA Margin | 28.7% | 14.8% |
| Total Traffic | 181.3 million | 175.8 million (YoY) |
Revenue from operations grew by 13.6% to Rs 280.5 crore compared to Rs 247 crore in the same period last year. Operating profit more than doubled to Rs 80.5 crore, while EBITDA margins soared to 28.7% from 14.8% a year ago. EBITDA, which stands for earnings before interest, tax, depreciation, and amortisation, reflects the company’s operational efficiency.
Traffic and User Engagement
Just Dial saw total traffic of 181.3 million unique visitors, representing a 5.7% increase YoY and a 6.0% rise quarter-on-quarter. Mobile platforms contributed to 85.3% of the traffic, while desktop and Voice platforms accounted for 11.3% and 3.4%, respectively.
Market Analysis and Broker Opinions
According to ICICI Securities, the company’s strong performance in the quarter was driven by higher paid campaigns—8,000 campaigns during the period—and an increase in the price per paid campaign. Margins improved significantly due to operating leverage and cost control. The firm’s cash balance is now approximately 55% of its market capitalization, with plans under consideration for cash utilization, including dividends or buybacks.
JM Financial Institutional Securities analysts suggest that the yield on payouts could exceed 6% if the full distribution of FY25 PAT or FCFF, along with other income, is realized. They project a 13.5% revenue growth over the medium term and anticipate a robust 60% YoY increase in EBITDA for FY25, as the full impact of recent margin expansions is yet to be realized.
Challenges and Future Outlook
Despite a muted collections growth of 5.4% YoY, attributed to the general elections in April-May, the company is experiencing a rebound in trends as of June. The management conservatively estimates a 13.5% revenue growth target, aligning with the brokerage firm’s ‘Buy’ rating and a target price of Rs 1,300 per share.