JustDial cracks 12% after Q2 earnings trail estimates

Shares of JustDial tumbled over 7 per cent in trade on Thursday after the company reported muted topline growth for the September quarter of current fiscal year.

The stock was the top loser among F&O stocks and ended the day 11.87 per cent down at Rs 854.75 after hitting an intraday low of Rs 848.10, down 12.06 per cent, on the Bombay Stock Exchange.

Local search engine posted 1.6 per cent growth in revenues at Rs 171.3 crore, below analysts' expectations, as compared to 168.62 crore in the June quarter of current fiscal year.

JustDial logged one of the slowest revenue growth rates it has ever reported, global investment firm Morgan Stanley told ET Now. 

"Delay in expansion strategies impacted volume growth for the company," said company management to ET now.

The internet firm reported a 47.03 per cent surge in its net profit at Rs 46.30 crore for the quarter ended September 30, on rise in income.

The company had clocked a profit of Rs 31.49 crore in the year ago period.

Total income from operations rose to Rs 171.27 crore in the July-September quarter of the current financial year from Rs 147.40 crore in the year ago period, the company said in a regulatory filing today.

The company's board also approved the allotment of 27,259 equity shares of face value of Rs 10 each to certain employees of pursuant to exercise by such employees of vested options granted to them under the Employee Stock Option Scheme, 2010 and Employee Stock Option Scheme, 2013.

Just Dial has also executed an agreement with Karnataka Industrial Area Development Board (KIADB) for allotment of 15 acres of land to the company on leasehold basis for a period of 99 years to establish a IT/ITes in Bangalore.