JustDial recently released its unaudited financial results for the second quarter and half year ended September 30th 2013. The net profit for half year period (April-Sept.) is reported to be INR 5,669 lakhs, an approx. 82% increase over the INR 3,112 lakhs profit achieved at the half year ended Sept. 30, 2012.
For the period between June 30, 2013 to September 30, 2013, the statement reveals a net profit of INR 2,866 Lakhs, a 2.24% increase over the previous quarter this year. Also, it received 122.6 million usage (representing PC/Mobile internet visits), representing a Y-o-Y growth of 36% and 291.8 million searches, as compared to 202.6 million in Q2FY13, representing a Y-o-Y growth of 44%.
As revealed in the Q2FY14 release, in addition to search, the company has already launched or has made progress in building products focused on Wine order, Movie/event ticketing, Cab booking, Doctor‟s appointment and Grocery order. The company also plans to launch a comprehensive price discovery engine along with an online platform for various goods.
The V.S.S Mani’s local search engine, since 2000, has provided its investors, more than 26% returns, also attracting personalities like Amitabh Bachchan to invest in it. The IPO during the first quarter this year provided 11x returns, valuing the company at USD 655 Mn. At present, the company is being valued at USD 1 Bn, approx. 350 times more than its valuations in 2000.
Taking about its position in the stock market, Justdial recently hit an all time high of INR 1183. 40 on NSE, with it market capitalisation mark crossing the INR 8000 Crore mark. The stock is presently trading around 70 times FY14 earnings and is expected to continue trading at nearly 55 times for FY15.
According to JM Financial’s Jaisinh Suchak, JustDial’s solid business model, potential growth and huge investor interests will allow the company to continue delivering going ahead. However, as per fundamental analyst, SP Tulsian, JustDial’s valuations may get eroded by 80-90 percent if a competitor enters this segment.
Well, no one knows what lies in the future. The current fact is that JustDial is growing, and that too at a very fast pace. Not only it has open up a whole new world of opportunities but also, it has again build up a trust for the growth and success of Internet companies in the market. The company is currently expanding its product line from local search to online food ordering and even to the IT/ITES – BPO sector, thereby establishing an IT/ITES – BPO and Software Development Centre at IT/ITES Park in Bangalore.
Also, as per few recent news, JustDial looks to be contemplating to open up its own online marketplace, selling products in categories like mobiles, electronics and further online selling of flowers. However as per medianama they look more keen on owning the transaction service piece of this segment, instead of pure play e-Commerce just to monetize its increasing Internet base, online and telephone business listings service.
Well in all possibility, it shall be interesting to see how market investor see them venturing into this exciting, growing yet sceptical space and if this could become a big story for Justdial to provide it a new high in its stock rise spree.
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