Just Dial's Local Search continues to maintain a high growth trajectory: searches were up 35% yoy in FY2015. Tier II/III cities now account for 11% of revenues generated (even as Mumbai plus Delhi remains 41.5%). Steady growth in paid campaigns (ended at 331,200 in FY2015 out of 15 mn listings) and strong pricing power helped Just Dial sustain a 29% revenue growth in FY2015. The share of voice has fallen to less than a tenth; internet and mobile usage account for the rest, which, we believe, is positive from a usage and analytics perspective. The mobile app has been downloaded 6.3 mn times, with mobile recently surpassing desktop as the preferred mode of access. Management believes that the base business is critically dependent on Search Plus
Just Dial aims to launch its master app by July 2015, with related advertising expenditure likely in 2QFY16. Just Dial may invest for a few more quarters to handhold and educate SMEs before starting to monetize the Search Plus offering.
Just Dial continues to refine its master app so as to leverage it as a one-stop solution for its user needs (addressing the problem of app fatigue). We expect Search Plus to drive significant business, especially as it scales up meaningfully by FY2017E. As many as 24 services are now online and the initial assessment of the management is that the response has been very encouraging
