Just Dial Q3 Preview: Revenue, profit set for strong growth

Just Dial is set to announce its Q3 FY25 results today, with analysts predicting notable growth in revenue and profitability. Investors and market participants are eagerly awaiting insights from the company, particularly regarding its new business initiatives and margin outlook.

Revenue and profit expectations

Brokerage estimates project a 9 per cent year-on-year (YoY) growth in Just Dial's revenue for the December quarter, taking it to Rs 288 crore. On the profitability front, a robust 78 per cent YoY surge in profit after tax (PAT) is anticipated, likely touching Rs 163 crore.

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to grow by 38 per cent YoY to Rs 83.2 crore. Margins are predicted to improve slightly, from 28.8 per cent in Q2 FY25 to 28.9 per cent in Q3 FY25, reflecting operational efficiency.

Key metrics and investor focus

In the preceding September quarter, Just Dial posted a net profit of Rs 154 crore, marking a remarkable 114 per cent YoY increase. Revenues stood at Rs 285 crore, reflecting a steady 9 per cent YoY growth. This performance has set a positive tone for expectations in Q3.

Investors will keep a close eye on management commentary regarding investments in new businesses and the sustainability of current growth levels. Margins will remain a critical focus, as will potential expansion plans to enhance market share and revenue streams.

Market sentiment

The digital directory and local search services market is becoming increasingly competitive. However, Just Dial's focus on digital transformation and business diversification positions it well to navigate challenges and seize opportunities.

Outlook

Analysts believe that the results could reaffirm Just Dial’s strong operational performance and underline its ability to maintain steady growth. Future commentary on business strategies and margin trajectories will likely influence stock performance in the near term.