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Just Dial hosted a conference
call on April 18, 2024. In the conference call the company was represented by VSS
Mani, MD & CEO and Abhishek Bansal, CFO.
Key takeaways of the call
FY24 was a year of productivity improvement
and the business has delivered improvement across all operating metrics.
Total Active Listings stood at
43.6 million as on March 31, 2024, an increase of 19.3% YoY and 4.7% QoQ. The
company added (net) 1,942,275 listings to the database during the quarter. Out
of total listings, 28.5 million listings were geo-coded as on March 31, 2024,
up 27.6% YoY. Total Images in listings stood at 188.5 million, up 35.4% YoY and
7.3% QoQ.
Out of total listings about 60% are
from Tier 2/3 cities. Outside of Tier I
cities the company have space to increase listings as well as realization.
Active Paid Campaigns at the end
of quarter stood at 583,690 up 8.4% YoY and 3.0% QoQ. Focus continues on
signing up majority of customers on monthly payment plans.
Total Traffic (Unique Visitors)
for the quarter stood at 171.1 million, up 7.4% YoY and 3.1% QoQ. 84.6% traffic
originated on Mobile platforms, 12.2% on Desktop/ PC and 3.2% on our Voice
platform.
Top 11 cities contributed about
58% of revenue and 40-41% of campaign.
Tier 2/3 cities accounted for 55% of traffic.
Total Ratings & Reviews stood
at 148.0 million at the end of quarter, up 3.5% YoY.
Cash and Investments stood at Rs 4625.4 crore as on March 31, 2024 compared to Rs
4,066.8 crore as on March 31, 2023 and Rs 4405.3 crore as on December 31, 2023.
Currently getting a return of 7.2% pre
tax on cash & investments. No concrete plans on deployment or distribution
of cash as of the moment.
Expect Core business to deliver steady
top line and profitability growth going forward. The company expects top line
growth of 15% plus for FY25 and going forward.
Of the 15%+ growth expected for
FY25 half of it will come from volume growth and half will be from price hike.
Realization increased by 7.2%yoy in
Q4FY24 driven by price increase in tier 2/3 cities. Against average Revenue per user of Rs
1400/user the non tier 1 cities is at about Rs 1100/users
Similar growth rates in B2B and
B2C. Ticket size of B2B is 10-15% higher than B2C.
Workforce count as end of March
2024 stood at 12800 employees. The company continue to focus on automate as
much process as possible. But expect 5%
increase in workforce in FY25 as MSME still needs some handholding. Higher productivity with lesser workforce in non
sales arena with technology usage.
Price increase is a continuous
process. Premium listing price hike is automatic on monthly/quarterly basis
depending on traffic. In non premium
listing the customer list it at floor price for fixed period.
Revenue growth in the range of
about 7-8% for the company will lead to operating leverage. So there is definitely scope for improvement
in margin. First target is 25% is of EBITDA
margin and what % of incremental margin
the company will deploy in advertisement to boost traffic by 12-15%. Still margin expansion takes place in FY25 despite
part of incremental margin is deployed in advertisement to boost traffic.
Effective Tax rate for Q4FY24 was
21.5%. The company expects the effective tax rate to be lower for FY25. But it
expects the effective tax rate to be about 18-19% beyond FY25.
Advertisement expense for Q4FY24
stood at Rs 5.6 crore and Rs 25 crore in fy24.
Expect to grow the paid campaign by 8-9% in FY25.
No single category contributes
not more than 3-4% of the revenue for the company.
In Q4FY24, the MTM gains are
short-term in nature and were taxed at full rates. The company expects to shift part of the
treasury roughly about Rs 2800 from short-term market to 3 year holdings. This
is expected to result in lower tax rate for FY25.
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