Just Dial Ltd Management Discussions

Economic overview

Global economic review

In FY 2023-24, global economic conditions were marked by challenges arising from geopolitical tensions and volatile commodity markets, notably due to the Russia-Ukraine crisis. This conflict disrupted trade flows, caused supply chain bottlenecks and increased costs for businesses worldwide. Elevated oil prices, driven by geopolitical tensions and supply constraints, further complicated the economic landscape, leading to higher transportation costs and inflationary pressures. Policymakers responded with adjusted monetary policies and fiscal stimulus packages to mitigate these effects and enhance resilience.

Global outlook

The global economy is anticipated to grow by 3.1% in 2024, followed by a slight rise to 3.2% in 2025, according to the International Monetary Fund (IMF). This forecast for 2024 is driven by the strong performance of the United States and several major emerging markets, alongside substantial fiscal measures in China.

World economic outlook growth projections (Real GDP, annual percentage change):

World output	Estimate	Projections
	2023	2024	2025
Advanced economies	3.1	3.1	3.2
United States	2.5	2.1	1.7
Euro area	0.5	0.9	1.7
Emerging markets and developing economies	4.1	4.2	4.2
Emerging and developing Asia	5.4	5.2	4.8
China	5.2	4.6	4.1
India	6.7	6.5	6.5

Source: World Economic Outlook, IMF

Domestic economic review

The Indian economy faced challenges stemming from inflationary pressures, volatile commodity prices and disruptions in the supply chain, both domestically and globally. Sectors such as energy and food experienced volatile prices, impacting production and distribution networks. Moreover, currency exchange rate fluctuations and geopolitical tensions influenced market sentiments and investor confidence. However, amidst these challenges, information technology showcased resilience and growth potential, contributing significantly to economic output and job creation. The digital economy thrived, driven by increased internet penetration, smartphone adoption and the expansion of digital services across various sectors.

Domestic outlook

The Reserve Bank maintained its GDP growth forecast at 7.2% for FY 2024-25, slightly lower than the estimated 7.6% expansion in FY 2023-24. Looking ahead, India shows potential to become the worlds third-largest economy by 2030. Strong domestic consumption, visible structural demand and healthier corporate and banking sectors are driving future growth. The countrys recovery is fuelled by domestic consumption, a shift to renewable energy, improved trade policies, infrastructure investments and digitalisation. With broad-based strategic reforms, India is poised for sustained economic growth.

Industry overview Telecommunication and internet services

The telecommunications industry in India is a dynamic and rapidly evolving sector, being the second-largest market globally, with a subscriber base exceeding

1.2 billion as of March 2024, encompassing both wireless and wireline users. This growth is attributed to various factors, including affordable tariffs, widespread accessibility and the introduction of Mobile Number Portability (MNP). Additionally, the expanding 3G and 4G network coverage has played a significant role in driving subscriber growth. Notably, Indias tele-density stands at 85.7%, with the rural market, which remains largely untapped, exhibiting a tele-density of 59.2%, while the urban market registers a tele-density of 133.7%.

1.2 Bn

Worlds second-largest subscriber base (March 31, 2024)

900 Mn

Active internet users expected to reach by 2025 in India

The industrys exponential growth in recent years is further fuelled by evolving consumption patterns among subscribers and the governments initiatives aimed at bolstering Indias domestic telecom manufacturing capacity. One such initiative includes the successful auction of IMT/5G spectrum, approved by the government to expedite digital connectivity. This auction, held by the end of July 2022, grossed US$18.8 billion. Moreover, India stands as the second-largest country globally in terms of internet subscribers and is one of the biggest consumers of data worldwide.

924 Mn

Broadband Subscribers (March 31, 2024)

85.7%

All India tele-density (March 31, 2024)

883 Mn

Mobile devices users (March 31, 2024)

Source: TRAI

Financially, the telecom sector remains robust, with gross revenue reaching RS. 809 billion (US$9.7 billion) in the first quarter of FY 2023-24. The telecommunications sector stands as the fourth-largest recipient of Foreign Direct Investment (FDI) inflows, constituting a notable 6% of the total FDI inflow. Remarkably, this sector directly contributes to 2.2 million jobs and indirectly supports an additional 1.8 million employment opportunities. Furthermore, the recent allowance of 100% FDI in the telecom sector signifies a crucial step, indicating a more liberalised and investor-friendly regulatory framework.

The Indian telecommunication industry has undergone significant transformation in recent years, driven by advancements in technology and increasing demand for connectivity. The following are the enablers of this evolution:

Access

Access to telecommunications services has expanded rapidly across India, with widespread availability of mobile and internet connectivity. Mobile penetration has reached remote rural areas, bridging the digital divide and empowering millions with access to communication and information services. The proliferation of affordable smartphones and competitive tariffs has further accelerated access, making telecommunications more inclusive and accessible to diverse segments of the population.

Digital infrastructure

The development of digital infrastructure forms the backbone of the Indian telecom industry, facilitating the delivery of high-speed internet and broadband services. Investments in fibre-optic networks, towers and data centres have enhanced connectivity and network reliability, supporting the growing demand for digital services. The expansion of 4G and the rollout of 5G technology are driving further investments in digital infrastructure, laying the groundwork for a more connected and digitally-enabled India.

High-speed internet

High-speed internet connectivity has become increasingly essential for various sectors, including education, healthcare, commerce and entertainment. This industry has witnessed a surge in demand for high-speed internet services, driven by rising consumption of data-intensive applications and content. The deployment of 5G networks has significantly improved internet speeds, enabling seamless streaming, online collaboration and access to digital services.

Broadband

Broadband penetration in India has witnessed steady growth, supported by government initiatives such as BharatNet and Digital India. Broadband services play a crucial role in driving digital inclusion and empowering individuals and businesses with high-speed internet access. The expansion of fibre-optic networks and the adoption of technologies like DOCSIS and FTTH are enhancing broadband connectivity, enabling faster data transmission and supporting the development of digital infrastructure.

Highlights of telecom subscription data (March 31, 2024)

Particulars	Wireless	Wireline	Total (Wireless + Wireline)
Total telephone subscribers (million)	1165.49	33.79	1199.28
Urban telephone subscribers (million)	634.47	30.92	665.38
Rural telephone subscribers (million)	531.02	2.88	533.90
Overall tele-density (%)	83.27	2.41	85.69
Urban tele-density (%)	127.51	6.21	133.72
Rural tele-density (%)	58.87	0.32	59.19
Share of urban subscribers (%)	54.44	91.49	55.48
Share of rural subscribers (%)	45.56	8.51	44.52
Broadband subscribers (million)	884.01	40.06	924.07

Industry growth drivers

The Digital India scheme

Digital India stands as the flagship initiative of the Government of India, aiming to propel the nation into a digitally empowered society and a knowledge economy.

• Digital infrastructure as a core utility for every citizen

- High-speed internet access as an essential utility for service delivery

- Unique, lifelong digital identity accessible online for all citizens

- Mobile phone and bank account enable citizen engagement in digital and financial spheres

- Convenient access to a Common Service Centre

- Private space on a public cloud for data sharing

- Establishment of a safe and secure cyber-space

• Governance and services on demand

- Seamless integration of services across departments and jurisdictions

- Real-time availability of services via online and mobile platforms

- Portability of all citizen entitlements accessible on the cloud

- Digitally transformed services to enhance ease of business operations

- Promotion of electronic and cashless financial transactions

- Utilisation of Geospatial Information Systems (GIS) for decision-making support and development

• Digital empowerment of citizens

- Universal promotion of digital literacy

- Accessibility of digital resources and services in Indian languages

- Collaborative digital platforms for citizen engagement in governance

- Elimination of the need for physical submission of government documents and certificates

In addition to the Digital India scheme, the government is actively pursuing various strategies to enhance the digital infrastructure in India. The promotion of new technologies and innovations is crucial for enhancing the overall quality and accessibility of digital infrastructure, ultimately facilitating economic growth and societal advancement in India.

The rise of digital payments (UPI)

Unified Payment Interface (UPI) is Indias primary digital payment method currently. India Digital Payments Report RS. 2 2023 reveals UPI transactions between July and December 2023 surged to a staggering 65.7 billion compared to 42.1 billion in the same period last year, an increase of 56%. The value of these transactions also witnessed a significant rise of 44%.

Source: Worldline

Government-enabled procurement portals

In FY 2023-24, the government-enabled procurement portals, notably the Government e-Marketplace (GeM), continued to facilitate transparent and efficient procurement processes across sectors. GeM witnessed substantial growth, attracting more buyers and sellers. The focus remained on leveraging technology to streamline operations, enhance transparency and ensure fair competition among vendors. Efforts were made to improve user interfaces, expand product ranges and integrate with other government systems. Special attention was given to enhancing accessibility for SMEs and startups, with incentives introduced to encourage their participation, ultimately promoting entrepreneurship and economic growth.

Access to digital lending

In FY 2023-24, access to digital lending in India witnessed notable growth, driven by advancements in technology and the increasing penetration of smartphones and internet connectivity. Digital lending platforms played a crucial role in expanding access to credit, particularly for underserved segments of the population, including small businesses, self-employed individuals and those without a formal credit history. These platforms leveraged data analytics, machine learning algorithms and alternative credit scoring methods to assess creditworthiness and offer quick and convenient loan approvals. Additionally, partnerships between fintech companies, traditional financial institutions and government agencies further facilitated the adoption of digital lending solutions. The regulatory environment also evolved to accommodate the digital lending ecosystem, ensuring consumer protection and promoting responsible lending practices.

Favourable government policies

• The National e-Governance Plan intends to set up over one million internet-enabled common service centres across India

• Through the Universal Service Obligation Fund (USOF), financial support is extended to operators making mobile services available in 62,400+ villages that have no access to telecom

• The government has signed an MoU with Japan to enhance cooperation in Information and Communication Technologies (ICT)

• The Wi-Fi Access Network Interface (WANI) project, a public Wi-Fi initiative by the government, along with the BharatNet scheme, is predicted to boost broadband use in rural areas

Enhanced investments to boost digital infrastructure

• In the Union Budget of 2024-25, the Department of Telecommunications, operating under the Ministry of Communications, has received a substantial budget allocation of RS. 1,118.8 billion. This marks a notable increase of 14.7% compared to the previous years allocation of RS. 975.8 billion.

Rise in number of smartphone users

Between 2024 and 2029, the global smartphone user base is set to witness a remarkable surge, soaring by 1.5 billion users, marking a 30.6 percent increase. This growth trajectory, spanning fifteen consecutive years, is projected to culminate in a peak of 6.4 billion users by 2029. In India, a burgeoning market in its own right, smartphone revenue is estimated to hit US$44.6 billion in 2024, with a promising annual growth rate of 7.25% forecasted until 2028. By then, the volume of smartphone units is expected to reach 234.5 million pieces, buoyed by a 4.5% anticipated growth in 2025. Despite these staggering figures, the average volume per person in Indias smartphone market remains modest, at 0.1 pieces in 2024. This surge in demand, particularly for budget-friendly devices, is fuelled by the countrys vast population and the price sensitivity of its consumer base.

E-commerce as a preferred mode

Indias digital economy is experiencing unprecedented growth, powered by affordable mobile internet rates and expanding connectivity. The Indian e-commerce sector has witnessed exponential expansion in recent years, with projections indicating a market size of US$99 billion by 2024. The COVID-19 pandemic acted as a catalyst for digitalisation, accelerating its adoption among small businesses. Forecasts suggest that between 2021 and 2025, e-commerce sales will grow at a remarkable CAGR of 18.2%, reaching RS. 8.8 trillion (US$120.1 billion) by 2025.

Since the onset of the pandemic, there has been a significant dependence on e-commerce platforms, with Indian consumers increasingly turning to online channels for a wide range of products, spanning electronics, fashion items and everyday essentials. This surge in digital commerce portrays the evolving consumer behaviour and the role played by digital platforms in facilitating seamless transactions and access to goods and services.

Demand rising in semi-urban and rural India

• Tremendous growth potential for e-commerce in Tier-II, III, IV and V markets due to widespread internet access, higher smartphone penetration and increasing awareness and aspirations

• Lower tele-density in rural areas indicates a largely untapped market for e-commerce

• Government initiatives aimed at improving infrastructure have expanded internet accessibility, enabling more people to benefit from internet-based services

• These factors are encouraging established service providers in internet and related technological offerings to strengthen their presence in rural regions

MSME sector

The Micro, Small and Medium Enterprises (MSME) sector, encompassing over 63 million enterprises, has become a vital and dynamic segment of the Indian economy, facilitating entrepreneurship and creating opportunities for selfemployment with relatively low capital investment, ranking second only to agriculture.

MSMEs contributes around 30% to the countrys GDP, accounting for 45% of manufacturing output and providing employment to approximately 110 million individuals. The Government of India has taken proactive measures to ensure that MSMEs benefit from various schemes in a timely manner. The Union Budget for 2023-24 emphasises facilitating ease of doing business for MSMEs, showcasing the governments commitment to supporting and promoting the growth of this crucial sector.

Since the inception of the Prime Minister Employment Generation Programme (PMEGP) in 2008, more than 9.29 lakh micro-enterprises have received support nationwide, as of November 30, 2023. These enterprises have benefited from Margin Money subsidies totalling RS. 345.17 billion, resulting in an estimated employment generation of around 7.84 million individuals.

Source: Press Information Bureau

Furthermore, in an effort to stimulate business activities, the government is actively promoting enterprise registration on the Government e-Marketplace (GeM), a centralised platform designed to streamline online procurement processes for various government departments, organisations and Public Sector Undertakings (PSUs).

Government support

• Interim Budget 2024 allocates RS. 221.4 billion for MSMEs, including new clusters and technology centres, aiming for global competitiveness

• An additional RS. 2 trillion credit support will be provided to Micro and Small Enterprises under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE)

• The Raising and Accelerating MSME Performance (RAMP) program, with an allocation of RS. 60 billion, will be implemented

. RS. 500 billion equity infusion is planned through the MSME Self-Reliant India Fund

• The Udyam, e-Shram, National Career Service (NCS) and Aatamanirbhar Skilled Employee Employer Mapping (ASEEM) portals will be integrated to provide G2C, B2C and B2B services related to credit facilitation, skilling and recruitment, with live, organic databases

• The Udyam Assist Platform (UAP) will be launched to formalise Informal Micro Enterprises (IMEs) and enable them to access benefits under Priority Sector Lending (PSL)

Source: InvestIndia.gov.in

Notable growth drivers

• Formalisation of credit for MSMEs aims to decrease the credit gap and encourage financial inclusion

• Skill development initiatives are being implemented to expedite the establishment of new MSMEs and enhance the value of existing ones

• Existing schemes such as TReDS (Trade Receivables Discounting System) ensure the resolution of working capital needs for MSMEs

• The Ministry of MSME has undertaken digitalisation efforts to enhance transparency in administration. Investments in constructing technology centres, increasing internet penetration and the growing customer adoption of digital payments are unlocking new growth opportunities for MSMEs

Business overview

Just Dial Limited stands as Indias premier local search engine, offering a wide array of localised services to users across the country through various platforms. These platforms include mobile apps available on both Android and iOS devices, an M-site optimised for mobile browsing, desktop/website accessibility, a pan-India telephone number (88888-88888) for voice inquiries and SMS services. The primary objective of the platform is to empower millions of MSMEs in India, enabling them to transition into internet-ready entities.

170.0 Mn

Average quarterly unique visitors (in FY 2023-24)

43.6 Mn

Active listings

(as on March 31, 2024)

583,690

Active paid campaigns (as on March 31, 2024)

148.0 Mn

Ratings and reviews (as on March 31, 2024)

Our offerings JD App

JD Android and iOS apps are designed to meet all consumer needs, offering simple and intuitive business discovery services with quick results. Users can find businesses easily with features like user ratings, location-based search and recommendations. Users can also view detailed information about price range, social media handles, amenities, services offered, highlights from the business and many more and post questions directly for faster responses. Additionally, the apps also provide access to various content including movies, news and sports.

JD Ratings

The JD Ratings tool facilitates mobile-verified and impartial ratings and reviews. With intelligent tag prompts, photo uploads and a reliable audit mechanism based on a 5-point rating scale, it enables SMEs to collect more feedback from users, aiding them in decision-making. Moreover, the feature allows businesses to respond to reviews, fostering closer interaction between users and businesses on the platform.

JD Business

JD Business is a dedicated centralised section within the JD app, specifically designed to empower merchants in efficiently managing their listing-level information. This enhancement significantly improves convenience by providing a unified platform for businesses to update various details such as phone numbers, WhatsApp contacts, operating hours, holiday schedules, multimedia content (including photos and videos), promotional deals, categories, catalogues, invoices, GST input credits and KYC documentation. This section also offers valuable insights into profile scores and actionable steps to swiftly enhance them. It serves as a consolidated hub for merchants to seamlessly manage multiple businesses on Justdial, thereby simplifying their operational tasks.

JD Mart

JD Mart is a B2B marketplace designed specifically for SMEs, facilitating online marketing for manufacturers, suppliers, distributors, wholesalers, exporters, importers and retailers. Through the platform, businesses can showcase digital product catalogues, aimed at advancing Indias digital business ecosystem, particularly focusing on SMEs across various sectors. On the buyer side, users have access to a diverse range of quality vendors offering a wide selection of products to meet their B2B needs. JD Mart is fully integrated with the Justdial platform, ensuring a seamless unified search experience. Furthermore, it is accessible via the web at https://www.jdmart.com and through dedicated JD Mart apps for Android and iOS devices.

The following are some of the value-added services and features of JD Mart:

• Interactive content with videos, images, description, specification, price, minimum order quantity, digital and PDF catalogues

• Digital company catalogue carousel allows sellers to showcase their extensive range of offerings

• Related category carousel and tags such as ‘Trending, ‘Most searched, ‘Number of enquiries served, ‘Response time, ‘Manufacturer on listing help buyers in their decisionmaking process

• Personalised homepage based on various learnings from search history and business type

• Communication tools to send e-mail enquiry, call and chat

• Request for Quotes (RFQ) where buyers can select industry-leading qualifiers and can be used by buyers for bulk enquiry or single product, depending on their requirements

• Tools that simplify onboarding for sellers and help them run their online business. These include catalogue management, real-time lead management, RFQ monitoring and chats with buyers

• Analytics configured with highly useful features which include lead management, providing quick access to missed leads, hot leads and insights in the form of dashboard to track their listing efficacy on the platform

• Tags for businesses like ‘Verified and ‘Trust that induce a strong sense of trust among the buyers and simplifies the selection process

• 24x7 support for query and complaint resolution

JD Analytics

The JD Analytics dashboard offers valuable insights into customer interactions, leads from multiple platforms, alerts for missed opportunities, review responses, competition and category trends and customer feedback, including the voice of the customer. Additionally, it provides convenient access to customer support. The JD Analytics dashboard meets businesses daily needs efficiently, serving as a comprehensive one-stop solution.

Online self-sign-up

The JD online self-sign-up programme enables businesses to initiate their campaigns directly on Justdial/JD Mart. This is a significant move in digitalising our sales and customer acquisition process. While most of our sales were driven by our capable sales team, the self-sign-up programmes introduce a new avenue for monetisation, aligning with the growing preference for Do-It-Yourself (DIY) solutions among modern customers.

JD Pay

JD Pay offers a hassle-free solution for swift digital payments, enhancing convenience for both merchants and consumers. It ensures a seamless, secure and safe payment experience. Through unified QR codes designed for merchants, payments can be easily executed via Scan & Pay on the Justdial app. JD Pay supports a variety of payment methods, including cashless transactions, cards, UPI, net banking and online wallets.

JD Omni

JD Omni offers comprehensive cloud-based solutions tailored for SMEs seeking to align their services with the prevailing trend of digitisation. These solutions empower business owners to establish their own customisable and transaction-ready websites, seamlessly integrating third- party resources across various marketplaces. The software and apps provided are user-friendly, easily installable and boast extensive customisation options. Key features include cloud-based point-of-sale, inventory management, customer relationship management and website-building software.

Business model Financial stability

Our subscription plans operate on a prepaid model, offering customers the flexibility to either pay upfront for the entire duration or opt for monthly advance payment plans through ECS. Since its introduction, this approach has enabled us to maintain a negative working capital, zero receivables and uphold a debt-free balance sheet, while ensuring robust revenue visibility.

Pan-India presence

Approximately 59% of our revenue is generated from the top 11 cities in India, while Tier-II and Tier-III cities contribute to approximately 41% of our overall revenue. Over last few years, we have intensified our efforts to expand our presence in smaller towns and cities experiencing a significant increase in internet usage.

Customised revenue model

We provide tailored packages at various price points, taking into account factors such as the nature of the business, the regions they serve and the chosen listing plans (premium or non-premium). Additionally, our customers enjoy the flexibility to select from multiple payment options (upfront or monthly) and payment methods (digital or cheque).

Transparency in listings

Advertisers have the option to select between premium and non-premium packages. Premium advertisers receive priority placement in category searches, ensuring enhanced visibility. Non-premium packages are listed in category searches based on the advertisers contribution compared to others.

Empowering businesses

We serve as a distinctive platform for advertisers, primarily SMEs, offering access to a large consumer base at affordable rates and with flexible payment options. We conduct specialised campaigns nationwide, aimed at maximising benefits for our advertisers. As of March 31, 2024, we had 5,83,690 active paid campaigns running on our platform.

Strong ground force

Our workforce includes 4,684 employees in tele-sales and a formidable feet-on-street sales force comprising 5,076 members dedicated to selling to SMEs. With a strong network deployed across 250+ cities, we cater to over 11,000+ pin codes in India, ensuring extensive coverage and support for our customers.

Service platforms

Our services are designed to be accessible ‘anywhere, anytime, spanning across multiple platforms, including web, mobile (both application and browser), voice and SMS. As a pan-India entity, our goal is to evolve into the go-to destination, fulfilling all search and transaction-related needs for Indian consumers.

Web

As pioneers in Indias local search sector, we have established a strong brand and consumer recall. Leveraging this, we prioritise product innovation and user engagement. Recently, our website underwent a complete redesign for optimal desktop viewing. Our platform-neutral approach and proprietary technology ensure a seamless user experience across platforms. Adhering to our ‘Life Made Easy philosophy, we offer features like predictive auto-suggest, desktop voice search, upfront filters, maps, ratings, operating hours and categorised searches.

Mobile

The surge in mobile internet users in India can be attributed to rising disposable incomes, widespread availability of affordable smartphones and cheaper internet data. To align with this trend, we consistently updated our mobile platforms, including the mobile website and JD apps (available on iOS and Android). These updates aimed to reduce page load times, facilitating faster searches for users. Our mobile platforms are designed to be user-friendly, easy to navigate and visually appealing. Among our offerings, features like Chat Messenger have emerged as highly profitable and successful. We ensure our JD and JD Mart apps are regularly updated with the latest features to continually enhance the user experience.

Voice and SMS

Originating as a voice-based search engine in the 1990s, during a time when internet and mobile usage were uncommon in India, we have evolved significantly. Presently, we offer pan-India voice-based search capabilities in multiple languages, accessible 24x7 through a national hotline number (88888-88888) and eight localised numbers for specific cities, ensuring a seamless customer experience.

Value-added services

We provide value-added services tailored for enhanced user engagement, such as user ratings and reviews, online movie finder, cricket updates, stock information and augmented reality (AR)-based search functionalities. In 4Q FY 2023-24, we achieved 171.1 million average quarterly unique visitors and as of March 31,2024, we accumulated 148 million ratings and reviews, reflecting increased user engagement.

Data management

Our business relies heavily on our database, making efficient data management a top priority. We ensure timely upgrades and enhancements to our processes to maintain database integrity. Our team regularly verifies and monitors relevant business details, ensuring an accurate representation of demand. We simplify searches and refine listings based on relevance to meet customer needs effectively, leveraging geo-coding and data analytics tools. We also enhance listings with richer content to provide customers with a more comprehensive understanding of our offerings.

Operational review

• Our platforms generated 170.0 million average quarterly unique visitors for the year ended March 31,2024

• Total active listings reached 43.6 million as of March 31, 2024, a growth of about 19.3% Y-o-Y

• 65.4% of the database, or 28.5 million listings, were geocoded and we had 188.5 million images in active listings, as on March 31,2024

• Recorded high user engagement with 148.0 million ratings and reviews as on March 31, 2024

• Total active paid campaigns stood at 583,690 as on March 31, 2024

Financial review

Particulars	FY20	FY21	FY22	FY23	FY24
Revenue from operations (Rs in million)	9,531.1	6,751.8	6,469.5	8,447.6	10,429.1
Other income (Rs in million)	1,397.1	1,495.2	1,221.7	1,419.1	3,054.6
Total income (Rs in million)	10,928.2	8,247.0	7,691.2	9,866.7	13,483.7
Operating EBITDA (Rs in million)	2,729.2	1,548.8	(20.5)	859.6	2,164.8
Operating EBITDA Margin (%)	28.6	22.9	(0.3)	10.2	20.8
Profit before tax (Rs in million)	3,516.5	2,546.7	834.1	1,880.3	4,664.9
Profit after tax (Rs in million)	2,723.0	2,141.9	709.4	1,629.2	3,628.5
Net profit margin (%)aa	24.9	26.0	9.2	16.5	26.9
Earnings per share (H)	42.00	33.92	9.51	19.34	42.71
Cash flow from operations (Rs in million)	1,525.6	1,389.3	392.1	1,788.0	2,592.2
Return on net worth** (%)	23.8	16.8	3.0	4.6	9.5

AA Net profit margin is calculated as Net profit (Profit after tax) as a percentage of Total income (Operating revenue + Other income) for the period. **Return on net worth (%) is calculated based on Average net worth.

Financial highlights

• Operating revenue from search and other services increased by 23.5% Y-o-Y from RS. 8,447.6 million in FY 2022-23 to RS. 10,429.1 million in FY 2023-24

• Other income increased by 115.3% from RS. 1,419.1 million in FY 2022-23 to RS. 3,054.6 million in FY 2023-24

• Total income increased by 36.7% from RS. 9,866.7 million in FY 2022-23 to RS. 13,483.7 million in FY 2023-24

• Adjusted operating EBITDA margin increased from 11.3% in FY 2022-23 to 20.7% in FY 2023-24, on account of increased revenue

• Profit before tax improved by 148.1% from RS. 1,880.3 million in FY 2022-23 to RS. 4,664.9 million in FY 2023-24. Profit after tax improved by 122.7% from RS. 1,629.2 million in FY 2022-23 to RS. 3,628.5 million in FY 2023-24. Net profit margin (including other income) also increased from 16.5% in FY 2022-23 to 26.9% in FY 2023-24

• Cash flows from operations stood at RS. 2,592.2 million in FY 2023-24, up from RS. 1,788.0 million in FY 2022-23. RS. 211.3 million was spent on advertising and promotion in FY 2023-24 as against RS. 237.2 million in FY 2022-23

• Basic earnings per share stood at RS. 42.71 in FY 2023-24 as against RS. 19.34 in FY 2022-23

Revenue

The SME subscription packages - premium (Platinum, Diamond and Gold) and non-premium - form the bulk of our revenue. Our services are prepaid in nature and the SMEs can opt to subscribe via our upfront payment plan or can pay in monthly instalments via ECS (Electronic Clearing Service). The unearned revenue recognised on our Balance Sheet reflects the amount received from customers where services are yet to be rendered.

Employee benefit expense

There was an increase in employee benefit expense from RS. 6,510 million in FY 2022-23 to RS. 7,197.7 million in FY 2023-24.

Finance costs

Finance cost, which are primarily for our rental lease liabilities, increased from RS. 76.7 million in FY 2022-23 to RS. 92.8 million in FY 2023-24.

Depreciation and amortisation expense

Depreciation and amortisation expenses increased from RS. 321.6 million in FY 2022-23 to RS. 461.7 million in FY 2023-24, due to increase in asset base.

Other expenses

Other expenses decreased by 1.1% from RS. 1,078.1 million in FY 2022-23 to RS. 1,066.6 million in FY 2023-24.

Income taxes

Income tax expense increased from RS. 251.1 million in FY 2022-23 to RS. 1,036.4 million in FY 2023-24 due to increase in taxable profit during the year.

Key financial ratios

Particulars	FY24	FY23	Y-o-Y Change
Interest coverage ratio3	51.3	25.5	101.0%
Current ratiob	7.7	7.8	(1.0)%
Debt equity ratioc	0.2	0.2	-
Operating profit margin (%)d	20.8	10.2	1058 bps
Net profit margin (%)e	26.9	16.5	1040 bps
Debtors turnover ratiof	NA	NA	NA
Return on net worth (%)g	9.4	4.6	488 bps

(a) Interest coverage ratio is calculated on interest over profit before interest, tax and exceptional items. The interest includes interest cost on lease asset as per new accounting standard. The change is attributable to increase in profit during the year.

(b) Change in Current ratio is decreased marginally due to increase in current liabilities.

(c) The Company does not have any debt in form of loans or borrowings. Debt equity ratio is calculated on total liabilities over our total equity.

(d) Operating profit margin is calculated on profit before interest, tax and depreciation over operating revenue whereas Net profit margins are calculated on profit after tax over operating revenue and other income. The changes for both the margins are attributable to the increase in revenue.

(e) Net profit margin is calculated as Net profit (Profit after tax) as a percentage of Total income (Operating revenue + Other income) for the period.

(f) Debtors and inventory turnover ratio is not applicable to us since we do not have any debtors and inventory.

(g) Return on net worth is calculated based on average net worth. The return on net worth increased mainly due to increase in profits during the year.

Segment-wise performance

We operate in a single reporting segment named ‘Search and Search-related Services.

Opportunities

Please refer to Page 18 for more details on opportunities.

Threats

Please refer to Page 28 for details on threats.

Outlook

Our primary objective is to drive traffic to our platforms and solidify our position as the preferred destination to search for all types of businesses, spanning service providers, wholesalers, manufacturers and retailers. The surge in digital adoption among SMEs augurs well for our prospects, with a significant portion of our current traffic stemming from mobile platforms. With the launch of our revamped website, we anticipate a rise in desktop traffic as well. Our focus remains on strengthening our core business of local search, which we believe holds immense potential, particularly as there are a substantial number of SMEs looking for a strong digital platform to enhance their visibility.

Technology and infrastructure

Our team, comprising over 400+ product and tech experts, is dedicated to developing and maintaining software applications, enabling businesses to adapt and evolve swiftly with shortened go-to-market timelines. With the support of a robust engineering team and Internet Data Centres (both inhouse and external), we ensure the secure management of our systems infrastructure, database and internet connectivity. Our servers are instrumental in powering open-source platforms for various intranet and extranet applications. Through the utilisation of cutting-edge technology and modern tech stacks, we ensure our alignment with emerging trends, thereby enhancing user experience in terms of speed and accessibility. We consistently intervene to efficiently manage frequent OS upgrades for our infrastructure, all the while maintaining zero downtime.

Data security and privacy

Our topmost priority is the protection and security of our database, housing millions of user records spanning individuals and businesses alike. To this end, we implement stringent controls and protocols, incorporating advanced technologies such as the Kona Site Defender, to prevent any potential data breaches or fraudulent activities. Additional measures, including client reputation solutions, bot managers, page integrity managers, site shields, DNS security and services, ensure unparalleled security for our online and system resources. Furthermore, we adhere to ISO 27001 controls and PCI DSS compliance standards. Our

Information Security Management System (ISMS) framework its critical importance in navigating the digital landscape revolves around risk management and mitigation, recognising safely and effectively.

Risk management

Nature of risk	Explanation	Risk mitigation measures
Technological risk	Inability to keep pace with the dynamic technological innovations	Just Dial has an expert technology team to ensure timely upgradation of the technology and infrastructure. Through constant innovation, the platforms and the technology are upgraded to provide a secure yet engaging user experience.
Operational risk	Inability to introduce innovative products and services could lead to a loss in users and customers and reduction in revenues	Just Dial always tries to understand the pulse of its users and customers and updates the offerings accordingly. We have been pursuing an aggressive product innovation strategy, which is evident from our various product offerings, such as JD Mart, JD Omni, JD Pay, etc.
Geographical risk	High dependence on the top 11 cities could lead to concentration of business	Just Dial follows a prudent strategy of steadily expanding our presence in the rapidly growing Tier II and III cities and towns through our strong sales team.
Competition risk	Increasing competition from global search engines and domestic players	Just Dial, being one of the first movers in the local search space, has been able to establish market leadership and develop a database that is difficult to replicate. Regular technological innovations have helped our Company provide a superior user experience. Justdial is a commercial-intent oriented search engine and our presence in multiple categories across sectors has ensured revenue dependency is not concentrated on one category or sector.

Human resource management

Our team is crucial to our success and we value their dedication and contributions. Cultivating our workforce through targeted learning and development initiatives is a fundamental organisational goal and directive from our leadership. The majority of our training programmes are accessible online, ensuring heightened convenience and accessibility for our employees. Additionally, we are actively pursuing automation to streamline the efficiency of our services. As of March 31, 2024, our total workforce comprised 12,834 employees.

Internal audit and controls

A robust system of internal controls ensures the reliability of financial and other records used for preparing financial statements and other data and the accountability of assets. This system is supplemented by a comprehensive programme of internal audits, reviews by the management and documented policies, guidelines and procedures. Internal audit findings provide important inputs for risk identification and assessment. We carry out periodic assessments of our business to identify significant risks that impede business objectives.

Forward-looking statement

The report contains forward-looking statements, identified by words like ‘expected, ‘will, ‘anticipate and so on. All statements that address expectations or projections about the future, but not limited to the Companys strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements. Since these are based on certain assumptions and expectations of future events, the Company cannot guarantee that these are accurate or will be realised. The Companys actual results, performance or achievements could thus differ from those projected in any forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any such statements based on subsequent developments, information or events.

The Company disclaims any obligation to update these forward-looking statements, except as may be required by law.