Justdial’s Q2 Profit Surges by 115%

Justdial, the hyperlocal search engine service owned by Reliance Retail, has reported a significant rise in its net profit for the quarter ended September 30, 2024. The company’s net profit more than doubled to INR 154.07 crore, representing a 115% increase from INR 71.79 crore in the corresponding quarter of the previous fiscal year.

This surge in profit was accompanied by a modest growth in operating revenue. Justdial’s operating revenue for the quarter stood at INR 284.83 crore, reflecting a 9.3% increase from INR 260.61 crore in the same quarter last year. On a sequential basis, this represented a 1.5% increase from INR 280.57 crore in the previous quarter.

The company’s total income saw a more remarkable 25% jump, reaching INR 398.44 crore, up from INR 318.53 crore in the year-ago quarter. This boost was largely attributed to a near doubling of other income, which rose by 96% to INR 113.61 crore from INR 57.92 crore in the previous year.

Justdial clarified that the other income for the quarter included gains from fair value assessments of financial instruments and the sale of investments. Fair value gains were reported at INR 99.80 crore, compared to INR 50.73 crore in the previous year, while profits from investment sales increased to INR 6.4 crore from INR 1.03 crore.

Company officials cited higher mark-to-market gains on the treasury portfolio due to declining bond yields as a key contributor to the sequential growth in other income.

In terms of expenditure, Justdial managed to reduce its expenses for the quarter to INR 216.88 crore, marking a 4% decrease from INR 226.43 crore in the year-ago quarter, helping to bolster the company’s financial performance further.