Justdial, the Mumbai-based hyperlocal search engine, has seen a 45.5% rise in profits and is looking forward to buyback equity shares worth $29 million in the coming 4 to 5 weeks, the hyperlocal search firm confirmed in its BSE listing (1) while announcing its financial results.
The company is looking forward to buyback almost 31.4 lakh equity share, representing up to 4.84% of the total number of equity shares of the paid-up equity share capital, with each share being valued at Rs 700.
Justdial recorded $11 million net profit, seeing a 45.5% hike from nearly $7.5 million recorded in FY20’s quarter one.
Reduced sales workforce
Justdial stated that the buyback is progressing on expected timelines, with the majority of required approvals in place. The record date was 3rd July 2020 and the tender offer window is expected to open on 4th August 2020, as stated.
According to the Bombay Stock Exchange filing, the company is held 33.43% by promoters, 35.6% by foreign investors, 19.86% by domestic investors, and 11.03% by individuals.
Despite seeing a rise in its profits, Justdial has seen a fall in its operating revenues by 32.4% YoY, falling from Rs 240 crore to Rs 162 crore this quarter, whereas the fall stands at 30.9% in terms of quarterly growth.
Justdial also reduced its sales team workforce by nearly 1k in the first quarter of the financial year. The company had close to 9,000 employees in the sales department in the fourth quarter of FY20 and has its employee strength standing at 8,000 for employees across telemarketing, marketing, and cold calling segments.