Reliance Retail-owned hyperlocal search engine Justdial has reported a remarkable 42.7% increase in its net profit for the quarter ending December 31, 2024 (Q3 FY25). The company posted a net profit of INR 131.50 Cr, compared to INR 92.11 Cr in the same period last year. Despite the impressive year-on-year growth, the company experienced a 14.3% decline in profit on a sequential basis from INR 153.52 Cr in the previous quarter.
This surge in profit highlights Justdial’s ability to generate significant revenue and continue expanding its reach in the hyperlocal search engine and services market. The company has demonstrated strong growth across various financial metrics, positioning itself well for the future.
Record Quarterly Revenue and Consistent Growth
Justdial’s top line performance for Q3 FY25 showed solid expansion both on a year-on-year (YoY) and quarter-on-quarter (QoQ) basis. The company’s net revenue from operations reached INR 287.33 Cr in Q3 FY25, marking an 8.4% increase YoY and a 0.9% rise QoQ. The company has declared that this is its highest-ever quarterly revenue, showcasing its resilience and growth momentum in a competitive market.
Justdial’s continuous innovation and strategic initiatives have contributed to this strong performance. As India’s leading search engine for hyperlocal services, the company has continued to gain market share, driven by its extensive database of businesses and services. The platform is also becoming more popular among users looking for quick solutions, adding to the company’s revenue generation potential.
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Strong EBITDA Growth and Margin Expansion
Justdial’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also showed significant growth, rising 43.4% YoY to INR 86.6 Cr in Q3 FY25. This surge in EBITDA highlights the company’s ability to manage operational costs effectively while increasing its revenue base.
Moreover, Justdial’s EBITDA margin expanded to 30.1% in Q3 FY25, up from 22.8% in the same quarter of the previous year. This growth in margins reflects the company’s improved operational efficiency, better cost management, and the increasing profitability of its core business. The company’s efforts to scale up its platform and enhance user experience seem to be yielding positive results, as it maintains a solid financial footing in the rapidly evolving tech and search services market.
Decline in Profit Sequentially, but Long-Term Growth Prospects Remain Strong
While Justdial’s year-on-year growth has been impressive, the company did face a slight setback in terms of profit compared to the previous quarter. The sequential decline of 14.3% in profit from INR 153.52 Cr in Q2 FY25 to INR 131.50 Cr in Q3 FY25 indicates some short-term pressures. However, this dip can be attributed to seasonal factors and one-time expenses, which are typical for many businesses during certain periods of the fiscal year.
Despite the short-term profit decline, Justdial’s long-term growth trajectory remains promising. The company’s continued focus on enhancing its platform, expanding its user base, and increasing its revenue per user positions it for sustained success. Justdial is well-placed to leverage its market leadership and capitalize on emerging trends in the hyperlocal search engine space.
Conclusion
Justdial’s impressive performance in Q3 FY25, with a significant surge in net profit and record quarterly revenue, underscores its continued dominance in the hyperlocal search engine market. While the company experienced a slight sequential decline in profit, its growth in both top-line revenue and EBITDA shows that it is on a solid growth path. With a focus on expanding its user base and improving operational efficiency, Justdial is set to continue its growth trajectory and capitalize on future opportunities in the market.
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