Get App
Last Updated : Oct 21, 2014 03:10 PM IST | Source: CNBC-TV18

Maintain 23-30% revenue growth for FY15: JustDial

Ramkumar Krishnamachari, chief financial officer says the recently approved fundraising plans would allow the company to pursue strategic objectives.

Internet search engine JustDial’s board has approved the raising of funds for an amount up to Rs. 1,000 crores through issue of equity or equity-linked securities, subject to approval of shareholders.

In an interview to CNBC-TV18, Ramkumar Krishnamachari, chief financial officer says this capital would allow the company to pursue strategic objectives.

While he refrained from sharing any details of the capital utilization, he says the company is maintaining its FY15 revenue growth target of 25-30 percent.


Below is the verbatim transcript of Ramkumar Krishnamachari’s interview to CNBC-TV18’s Latha Venkatesh and Sonia Shenoy

Latha: Just walk us through this rationale to raise Rs 1000 crore when you already have enough cash about Rs 750 crore.

A: We have got this enabling resolution from the board to go and raise capital. Now the idea is to give us the freedom and flexibility to pursue our strategic objective. It is a very broad objective for us so the whole internet space is attracting lot of capital right now. We believe that having that capital with us will give us that freedom and flexibility to pursue what we believe would be our strategic objective.

I cannot say anything more on the specifics of it because there is not much that I can share with you.

Sonia: Considering the total cash on hand will be as large as Rs 1750 crore, will acquisitions be top of your mind now?

A: It is a possibility but as I said it is premature for me to get into specifics of that. It is part of the strategic objective to have capital and then have that freedom to pursue the objectives that we have. So acquisition is one among the many.
But there is nothing in mind as of now.

Latha: You had indicated that FY15 revenue growth will be 25-30 percent but if I look at your first half performance it does look like revenue growth will be closer to 30 percent and even higher, is this a possibility now especially after the total investments being so high?

A: We don’t give guidance. We mentioned that growth can be anywhere between 25-30 percent and we have delivered good revenue growth in the first two quarters.

The trends are looking good, trends are looking very healthy. The advertisers are recognizing, the consumers are going online and they need to have an online strategy and we are educating them and they are more receptive to signing up. So trends are looking good and we have no reason to believe that the trends will change. So we are quite excited.

Sonia: What is the outlook as far as the FY15 margins are concerned?

A: We are maintaining a stable margin environment. As I mentioned some of the implemental margin expansion are going back to investments both in growth as well as in such plus. So our belief is that we should be able to maintain stable margins.

Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Oct 21, 2014 10:33 am
Follow us on
Available On