Shares of Just Dial slipped over 8 percent intraday on Thursday. Local search engine Just Dial reported 7.98 percent increase in net profit at Rs 38.93 crore for the quarter ended June 30, 2016.
The company had reported a net profit of Rs 36.05 crore in the corresponding quarter a year ago.
Total income from operations grew 6.17 percent to Rs 176.29 crore in the quarter under review against Rs 166.03 crore in the year-ago period, it said in a BSE filing.
Its overall expenses stood at Rs 155.99 crore, up 22.28 percent, compared with Rs 127.56 crore in the first quarter of the previous fiscal. In a separate filing, Just Dial said its Board of Directors have approved a Draft Scheme of Arrangement between Just Dial and Just Dial Global Private Limited (JDGPL) for demerger of Data and Information Undertaking of JDGPL into the company, subject to requisite approvals.
CFO Ramkumar Krishnamachari in an interview to CNBC-TV18 said Just Dial has been paying the price for not expanding and executing on the sales side for the last 2 year.
However, Krishnamachari says the company has taken corrective steps and it should start yielding results leading to double-digit revenue run rate starting from the third quarter this fiscal.
He expects margin will be under pressure for the next few quarters as marketing and advertising spends will have to be undertaken but says there is nothing to be worried about.At 15:45 hrs Just Dial was at Rs 471.85, down Rs 14.25, or 2.93 percent on the BSE.
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