Just Dial Q4 Review - Pickup In Growth At The Cost Of Operating Margin: Yes Securities
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Yes Securities Report
Overall, Just Dial Ltd. reported mixed performance for the quarter. While revenue growth was in-line, the operating margin for the quarter was below expectation.
The pickup in sequential revenue has been achieved with higher investment in sales; and focus on monthly plans. We expect that operating margin would remain subdued in FY23 as it invests in sales network and content enrichment to put the core business-to-consumer business back on growth trajectory.
The B2C segment continues to face high competition from Google, Facebook and other vertical and horizontal players.
The business-to-business segment is being scaled up and the current focus is to invest in better quality content that will drive traffic flow and monetisation.
We estimate revenue compound annual growth rate of 26.0% over FY22‐FY24E with average Ebit margin of 18.7%.
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