Prime Highlights
- Just Dial stock jumped 14%, its biggest single-day rise in two years, following strong June quarter results.
- Founder VSS Mani steps down after 33 years, handing over the CEO role to Dinkar Ayilavarapu.
Key Facts
- Just Dial is an online local search and business listings platform.
- The company’s cash reserves of Rs 6,022 crore exceed its market capitalisation of Rs 5,400 crore.
Background
Just Dial shares surged as much as 14% on Monday, marking the company’s biggest single-day gain in two years, after it posted strong June quarter earnings and announced a leadership change at the top. The stock had last risen 20% in a single session in July two years ago.
Revenue grew 9.9% year-on-year to Rs 327.5 crore, the fastest pace in eight quarters, while sequential growth stood at 6.6%. Profit after tax rose to Rs 166.3 crore from Rs 100 crore in the previous quarter. However, EBITDA margin narrowed by 230 basis points to 26.7% from 28.9% a year earlier, weighed down by higher employee costs and other expenses.
Founder, managing director and chief executive VSS Mani, who has led the company for 33 years, will step down from his executive roles at the end of July. Dinkar Ayilavarapu has been named CEO-designate with effect from earlier this month and will take over as chief executive from the start of August. Dinesh Taluja has already taken charge as the new chief financial officer, replacing the previous incumbent earlier this month.
The company’s total active listings rose 13% year-on-year to 56.1 million, while unique visits stood at 192.9 million, broadly flat annually but up 5.8% sequentially. Deferred revenue was recorded at Rs 540 crore for the quarter. Notably, the company’s cash reserves of Rs 6,022 crore now exceed its current market capitalisation of Rs 5,400 crore.
Shares were trading 13.7% higher at Rs 641.3 following the results. The stock has gained 20% over the past month, trimming its year-to-date decline to 13%.
