Local search services provider Just Dial's third quarter profit is seen rising 15.1 percent year-on-year to Rs 37 crore despite weak operational performance, according to analysts polled by CNBC-TV18.
Revenue in same period is likely to grow 17.5 percent to Rs 181.5 crore from Rs 154.42 crore, which had been moderated in last few quarters. Revenue growth was 19.6 percent in Q2FY16, 24.88 percent in Q1, 25.85 percent in Q4FY15, 28.8 percent in Q3 and 30.9 percent in Q2, which indicates weakness in new client addition.
Operating profit (earnings before interest, tax, depreciation and amortisation) may decline 8.2 percent year-on-year to Rs 46 crore and margin may shrink 706 basis points to 25.34 percent in quarter gone by but margin may expand on sequential basis.
Key things to watch out for would be Search Plus, which launched in September 2015. The company had planned to launch advertising campaign for Search Plus beginning January 2016.
Analysts worried about its core business that has been slowing down due to inadequate investments in recent past and rising competition. During the quarter, the company said it believes recruitment of sales force to drive business listings was slow in last two years.
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