Just Dial Q4 Results Review - Margin Improvement Beats Estimates Again: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Just Dial Ltd. grew revenues in-line. 340 basis points QoQ Ebitda margin expansion was ahead of expectations. This was achieved by cutting employee expenses as bottom 10-15% of employees were churned out. This was aided by implementing automation in various parts of the business which contributed to lower manpower requirements. The annualised churn reduced by 300-400 basis points YoY despite an increase in the proportion of ‘monthly’ subscriptions aided by low ticket size and auto renewals. Management believes there is still room for margin improvement. We think that stock could re-rate to 14 times one-year forward enterprise value/Ebitda (earlier 12 times) given the sustained improvement in operating metrics over FY24. However, meaningful rerating is likely to happen when investors have better clarity on cash utilisation. Maintain Buy..Click on the attachment to read the full report:.ICICI Securities Q4 Results Review - Robust Quarter; Dropping Coverage Owing To De-Listing: Axis Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Just Dial Q4 Results Review - Margin Improvement Beats Estimates Again: ICICI Securities

Management mentioned that ‘top 11’ cities contributed to 58% of the revenues and 40-41% to the overall traffic

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