Just Dial shares slumped 8 per cent on Wednesday, following the local search firm’s disappointing quarterly numbers. Just Dial reported a net profit of Rs 38.9 crore on sales of Rs 176.29 crore in the June quarter, missing Street estimates.
Just Dial, which had reported sales of Rs 179 crore in the March quarter, posted its first ever sequential decline in revenue. The revenue hit was on account of aggressive discounts to get more business, analysts said.
Paid listings form the core of Just Dial’s operations, but they have come under pressure over the last few quarters because of tough competition from companies such as Zomato and Practo.
As a result, Just Dial has lost market share in segments such as food orders and doctor appointments over the last few months. Just Dial reported a 6 per cent decline in average realization per campaign during the June quarter. (Also read: The Spectacular Rise and Fall of Just Dial Shares)
Just Dial posted its lowest ever margin in the June quarter on account of higher employee expenses. The company had earlier said that it will recruit more sales people to drive business.
As of 09.45 a.m., Just Dial shares traded 3.5 per cent lower at Rs 468.80, underperforming the broader Nifty that traded 0.13 per cent higher.