Just Dial - Q1 FY22 first cut - YES Securities

Overall performance below expectation

- Reported revenue of Rs 1,654 mn (sequential decline of 5.8% QoQ), led by 4.3% QoQ decline in the number of paid customers.

- The decline in revenue can be attributed to the negative impact of Pandemic on SMEs and rising competition from Google other vertical players.

- Reported EBITDA loss of Rs 172 mn (vs EBITDA profit of Rs 345 mn in Q4FY21) due to higher other expenses of Rs 704 mn (included advertising cost of Rs 500 mn for promoting JD mart.

- Operationally, the performance was weak as besides decline in the number of paid customers by 4.3% QoQ, total SMEs listing on the platform grew by Just 0.2 mn QoQ to 30.6mn

- The number of unique visitors declined by 3.9% QoQ to 124 mn. App downloads per day declined to 7,831 compared to 9,614 in Q4FY21.

- The number of employees fell by 1411 (12.6% QoQ) to 9,751.

- The outlook for the B2C business remains challenging due to high competitive intensity in the space reflected in stagnant traffic and tepid performance in addition of paid customers over last few quarters. While the launch of the B2B platform is a step in right direction, but it will take time to make its presence felt in the space. We currently have REDUCE Rating and will review estimates/rating post call tomorrow

Shares of JUST DIAL LTD. was last trading in BSE at Rs.1017.8 as compared to the previous close of Rs. 1073.3. The total number of shares traded during the day was 1482889 in over 26643 trades.

The stock hit an intraday high of Rs. 1085 and intraday low of 1010.3. The net turnover during the day was Rs. 1522796366.

Source : Equity Bulls

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