Robust Q4 Performance Boosts Just Dial Shares
Shares of Just Dial, a local search-related service provider, witnessed a double-digit surge in early trade on April 18, following the company’s impressive performance in the fourth quarter of fiscal year 2024. The company reported significant growth in its consolidated net profit and revenue, driving investor confidence and leading to a surge in share prices.
Impressive Financial Results Propel Share Price Surge
Just Dial’s fourth-quarter results showcased notable improvements, with the company’s net profit surging by 38 percent year-on-year to reach Rs 115.74 crore. Similarly, its revenue from operations recorded a commendable growth of over 16 percent year-on-year, amounting to Rs 270.30 crore. The operating EBITDA stood at Rs 70.60 crore, marking a substantial increase of 111.4 percent compared to the previous year. Notably, the EBITDA margin witnessed a remarkable expansion, reaching 26.1 percent compared to 14.4 percent in the corresponding period last year.
Confidence in Margin Sustainability for FY25
Abhishek Bansal, the Chief Financial Officer (CFO) of Just Dial, expressed confidence in the company’s ability to sustain margins in the upcoming fiscal year. Bansal stated that the company aims to maintain a margin of about 27-28 percent for FY25, reflecting a commitment to efficiency and growth.
Strategic Utilization of Cash Reserves
Just Dial boasts a significant cash reserve of Rs 4,625 crore, providing ample flexibility for strategic decision-making. The CFO indicated that the company’s focus is on generating free cash flow, with plans to deploy surplus funds in a manner that maximizes long-term value creation. Options under consideration include potential acquisitions or aggressive advertising campaigns, with a keen emphasis on ensuring synergies with the core business and favorable unit economics.
Focus on Operational Efficiency
Just Dial’s impressive EBITDA margin expansion, witnessed at 1,176 basis points year-on-year and 334 basis points quarter-on-quarter, underscores the company’s commitment to operational efficiency. The growth in margins was attributed to both top-line growth and cost efficiencies, particularly in employee costs and other expenses. This focus on operational excellence positions Just Dial for sustained growth and profitability in the competitive market landscape.
Continued Investor Interest and Market Outlook
The surge in Just Dial’s share price reflects investor optimism surrounding the company’s robust financial performance and strategic direction. With a strong focus on sustaining margins, optimizing cash reserves, and driving operational efficiency, Just Dial remains well-positioned to capitalize on growth opportunities and deliver value to its shareholders.
Just Dial’s strong performance in the fourth quarter of fiscal year 2024 has propelled investor confidence and led to a significant surge in share prices. The company’s focus on sustaining margins, strategic utilization of cash reserves, and commitment to operational efficiency bode well for its future growth prospects. As Just Dial continues to navigate the dynamic business landscape, investors remain optimistic about its ability to deliver sustained value and drive shareholder returns.
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