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Last Updated : Jul 22, 2017 05:01 PM IST | Source: CNBC-TV18

Just Dial Q1 profit seen down 36% on weak operational nos; buyback key

Key factor to watch out for would be share buyback announcement. If the company announces 10 percent buyback then the company will have to shell out Rs 90.5 crore and Rs 226 crore for 25 percent buyback.

 
 
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Local search engine Just Dial's first quarter profit is expected to fall sharply by 35.7 percent sequentially to Rs 25 crore due to weak operational numbers.

Revenue during the quarter is seen rising 7.7 percent to Rs 190 crore QoQ, according to average of estimates of analysts polled by CNBC-TV18.

Operating profit is likely to fall to Rs 26 crore from Rs 29.3 crore and margin may shrink to 13.7 percent from 16.6 percent on sequential basis.

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Analysts expect lower margins for Just Dial due to its ongoing advertising campaign.

Headwinds

The company has been facing lot of headwinds as its senior management (CFO, CTO and HR head) exited recently and its revenue growth has been slowed from 30 percent in Q1FY16 to 5.9 percent in Q4FY17.

Even the competition increased from Google, vertical specific apps like urban clap, Zomato etc.

Key factor to watch out for would be share buyback announcement. If the company announces 10 percent buyback then the company will have to shell out Rs 90.5 crore and Rs 226 crore for 25 percent buyback.

At the end of March 2017, it had cash of Rs 1,017 crore on its books. Its last buyback was in February–March 2016 at a tender price of Rs 1,550.
First Published on Jul 22, 2017 05:01 pm
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