Q1FY22 Results: Just Dial Share Value
Total Operating Revenue stood at Rs 165.4 Crores, up 1.8% YoY.
Operating EBITDA stood at Rs -17.2 Crores due to Rs 50.5 Crores of advertising spend during the quarter in IPL 2021 to promote new B2B platform, JD Mart.
Net Loss stood at Rs 3.5 Crores. Other income stood at Rs 22.8 Crores for the quarter.
Cash and Investments stood at Rs 1,533 Crores as on June 30, 2021 compared to Rs 1,643.2 Crores as on June 30, 2020 and Rs 1,572.1 Crores as on March 31, 2021.
4QFY21 monetization stood at 85% of pre-COVID levels. However, the unpredictable second wave restrictions impacted Collections during 1Q FY22, which stood at Rs 142.6 Crores, down 28.9% QoQ.
The current quarter revenues & margins were impacted by Covid and is expected to improve in coming quarters.
Just Dial ltd annual report is currently focusing on JD Mart’s content & sales while monetisation will take a few quarters.
Just Dial Value Research employees declined in the quarter due to non-replacement of attrition.
Business Highlights: Just Dial Share Chart
Total Traffic (Unique Visitors) for the quarter stood at 124.1 million, up 24.1% YoY and down 3.9% QoQ.
Total Active Listings stood at 30.6 million as on June 30, 2021, an increase of 3.2% YoY and 0.5% QoQ. 152,116 listings were added to the database during the quarter.
Total Ratings & Reviews stood at 120.0 million at the end of quarter, up 8.5% YoY.
Active Paid Campaigns at the end of quarter stood at 437,865, drop of 1.6% YoY and 4.3% QoQ.
IPL 2021 campaign has resulted in great branding and awareness about JD Mart among Businesses.
Reliance Retail Ventures Ltd (RVL) & Just Dial Deal: Just Dial Chart Analysis
Reliance Retail Ventures will hold controlling stake in Just Dial Growth for a total consideration of 3,497 crore. Reliance VL will hold 40.95% stake in the company and make an open offer of 26% stake. RVL will hold 40.95% stake via preferential allotment (25.33%) and acquisition of stake from existing promoters (15.62%).
RVL will get 25.33% stake in the company via preferential allotment of 2.12 crore shares at a Just Dial share price of 1022.25 per share. Further the company will acquire 15.62% stake (1.31 crore shares) from VSS Mani at a price of 1020 per share.
Just Dial technical chart in the call indicated that the transaction is expected to be completed post approval in EGM in August. Post that open offer could take one to one and a half months.
The capital infused by RVL will help Just Dial future chart to improve its JD Mart’s content, help in developing end to end capability, leadership team to monetise & develop better content. Apart from JD Mart, the company’s focus also includes its JD B2C app and JD Omni.
RVL will benefit from 30 million listings on Just Dial stock price history. The acquisition was done by RVL and not the Jio platform. As it is closer to SMEs. In addition, further synergies can be explored across the Reliance group. At present, the B2B & B2C platforms are expected to be under JDL branding. A detailed strategy will be known in subsequent quarters.
Post the transaction, VSS Mani will continue to hold MD & CEO post and will have a holding of 10%.