just dial ltd Management discussions

ECONOMIC OVERVIEW Global outlook

Global growth is estimated to go from 2.9% in 2023 rising to 3.1% in 2024. Central bank interest rates have now stabilised and are expected to keep inflation in check. Chinas lifting of its the zero-COVID strategy was a potential driver for global growth but has not achieved the momentum needed to counter the prevailing recessionary pressures in the other major global economies. The West is actively pursuing the China Plus One strategy to diversify their dependency and expand the sourcing bases. India has gained from this strategy, supported by the massive push in infrastructure that has further sweetened the deal for prospective investors.

Recent geo-political events have had a substantial effect on global supply chains, leading to shortages of commodities around the world. The US Federal Reserve and other central banks have tightened monetary policy in an effort to curb inflation, and central banks often have to strike a balance between controlling inflation and promoting economic growth. The interest hikes and cost-of-living crisis face a strong resistance in Europe and the US, and it will take developed economies a fair amount of time to get back their economy on track. However, a strong growth potential is observed for Middle Eastern countries like Saudi Arabia, who are actively diversifying their economies and bringing in newer investments.

Source: World Economic Outlook- IMF

Domestic outlook

Indias positive GDP growth puts it in a strong position, and its favourable demographic profile and strong consumption base are expected to be the drivers of growth. Public sector spending on infrastructure and other core economic drivers during the pandemic years have borne fruit and provided timely resuscitation to the economy, with nearly all sectors witnessing strong comeback. Further, high collections of goods and services tax (GST) and direct taxes have provided the government ammunition to spend and cushion the impact of the global slowdown and to keep the economy buoyant.

Widespread domestic consumption, energy transition, improved trade policies, investment in infrastructure and digital transformation at scale are some of the major factors behind Indias strong recovery. Forecasts suggest that India is likely to overtake Japan and Germany to become the third- la rgest economy by 2030. The Indian governments Product Linked Incentive (PLI) scheme is a step in this direction, and it will boost exports, strengthen Indias technological prowess and reduce import dependence.

INDUSTRY OVERVIEW Telecommunication and internet services

Over the preceding seven years, there has been a notable expansion of 65% in the Indian telecom tower industry. Forecasts indicate that the implementation of 5G technology is poised to contribute significantly to the Indian economy,

propelling it by a substantial US$ 450 billion during the period spanning from 2023 to 2040. As per assessments made by the Global System for Mobile Communications (GSMA), a highly promising investment landscape is emerging in this sector. This is attributed to Indias projected possession of nearly one billion active smartphones and a customer base of 920 million unique mobile users by the year 2025.

The surge in mobile phone adoption coupled with a decrease in data expenses is set to introduce 500 million new internet users in India, paving the way for fresh business prospects. These opportunities span various sectors, ranging from food delivery and e-commerce. Looking ahead to 2025, Indias demand for adept professionals will escalate, reaching 22 million skilled workers. These professionals will be entrusted with the responsibility of managing hardware, software, computer data, and manufacturing processes within 5G-centric technologies like the Internet of Things (IoT), Artificial Intelligence (AI), robotics, and cloud computing. The expanding daily subscriber base, coupled with job creation and the emergence of novel business avenues, serves as a magnet for investments in this sector.

Data consumption in India has increased exponentially, driven by affordable data rates. And today, India has the highest mobile data consumption rate in the world. Nokias annual Mobile Broadband Index (MBiT) report revealed that pan-India mobile data usage per month grew from 4.5 exabytes to 14.4 exabytes between 2018 and 2022. The report also revealed that average data consumption per user was 19.5 GB in 2022. Now with 5G being rolled out, mobile broadband usage will only keep soaring higher across diverse industry verticals.

The pan-India 5G expansion will necessitate the upgradation of existing networks to greenfield ones. Towercos are anticipated to be crucial in the development of the underpinning digital infrastructure, and the installation of macro towers, fibre networks, small cells, and data centres will demand a substantial financial commitment. The PM GatiShakti National Master Plan will play a critical role in boosting the digital infrastructure development. The ‘GatiShakti Sanchar Portal will streamline the process of Right of Way (RoW) approvals and provide a robust mechanism to achieve the goal of ‘Broadband for All.

The industrys growth is facilitated by several factors, including rising demand, mobile device proliferation, improving lifestyles and increasing digital awareness among the public. In addition, policy support from the government has created an encouraging environment, with reduced license fees and relaxed FDI norms translating to higher FDI inflows and increased M&A activities.

Source: Strategic Investment Research Unit

84.51%

All India tele-density

(March 23)

Source: TRAI

Highlights of telecom subscription data (March 31, 2023)
Particulars	Wireless	Wireline	Total (Wireless + Wireline)
Total telephone subscribers (million)	1,143.93	27.41	1,172.34
Urban telephone subscribers (million)	627.54	26.16	653.71
Rural telephone subscribers (million)	516.38	2.25	518.63
Overall tele-density (%)	82.46	2.05	84.51
Urban tele-density (%)	128.45	5.36	133.81
Rural tele-density (%)	57.46	0.25	57.71
Share of urban subscribers	54.86	92.09	55.76
Share of rural subscribers	45.14	7.91	44.24
Broadband subscribers (million)	813.08	33.49	846.57

Global internet usage

The number of internet users worldwide is around 5.18 billion as of April 2023, a growth of about 6% from 4.9 billion in 2021. The penetration rate of internet users globally is 64.6%, with the highest usage seen in the age group of 15-24 years. Mobile internet accounted for 58% in web traffic globally. Among the worldwide regions using the internet, Northern Europe ranked first with the highest share of the population using the internet in 2023. In Norway, Saudi Arabia, and the United Arab Emirates, 99 percent of the population used the internet as of April 2023.

Source: Statista

INDUSTRY GROWTH DRIVERS Favourable government policies

Apart from the Digital India scheme, the government is looking at updating the legislative framework, spectrum management, and the introduction of new technology and innovations, to boost the digital infrastructure in India.

• The government has signed an MoU with Japan to enhance cooperation in Information and Communication Technologies (ICT)

• The Department of Telecommunications (DoT) is also in discussions with banks to address the financial stress in the telecom sector

• Through the Universal Service Obligation Fund (USOF), financial support is extended to operators making mobile services available in 62,400+ villages that have no access to telecom

• The National e-Governance Plan intends to set up over one million internet-enabled common service centres across India

• The government has approved H121.95 billion PLI schemes for telecom and networking products under the DoT, attracting many global players for the manufacture of mobile devices and components

• The Wi-Fi Access Network Interface (WANI) project, a public Wi-Fi initiative by the government, along with the BharatNet scheme, is predicted to boost broadband use in rural areas

Enhanced investments to boost digital infrastructure

• In July 2021, the government approved a viability gap funding support of up to H190.41 billion to implement the BharatNet project through the Public-Private Partnership (PPP) model in 16 states

• The Union Budget for FY23 allocated H975 billion for the development of telecom infrastructure in the country, which includes optical-fibre-based network for defence services and to improve connectivity in the North- eastern states.

Source: The Press Information Bureau (PIB)

Rise in the number of smartphone users

Currently at 750 million, India is expected to reach 1 billion smartphone users by 2026. Under the ‘Make in India initiative, all large-scale smartphone manufacturers are to set up production facilities to cater to Indian demand. Apple is set to manufacture 25% of its iPhones in India.

Source : Deloitte Report I ABP News Bureau

E-commerce as preferred mode of shopping

Cheap mobile internet rates and growing connectivity are fueling Indias digital economy. The Indian e-commerce market has experienced exponential growth in the past few years and is expected to be a US$111 billion market by 2024.

The pandemic accelerated the pace of digitalisation and its adoption by small businesses. According to forecasts, between 2021-2025, e-commerce sales* will grow at 18.2% CAGR and reach H8.8 trillion (US$120.1 billion) in 2025. Since the pandemic, there has been a high dependence on e-commerce platforms, with Indian customers shopping for products ranging from electronics and fashion products to everyday essentials.

Source: *Forbes

Demand skewed towards semi-urban and rural India

E-commerce has a tremendous potential for growth in Tier-II, III, IV and V markets due to widespread internet access, higher smartphone penetration and rising awareness and aspirations. In rural areas, lower tele-density signifies a largely untapped market. However, better infrastructure, backed by government initiatives, has increased reach, ensuring more people can benefit from internet-based services. These factors will encourage established service providers in internet and other related technological offerings to strengthen their presence in these regions.

MSMESECTOR

With 63.3 million+ units, Micro, Small and Medium Sized Enterprises (MSMEs) form an integral part of the Indian economy, contributing ~6.11% of the manufacturing GDP and 24.63% of the service sectors GDP. They account for ~40% of Indias overall exports and generate over 120 million jobs, building women workforces, thus promoting inclusive development. The Government of India, which sees MSMEs as the backbone of the economy, has set a target to increase the sectors GDP contribution from 30% to 40% by 2025, by making companies competitive and strengthening the manufacturing sector.

To drive business, the government has also been encouraging enterprises to register on the Government e-Marketplace (GeM) - a one-stop portal to facilitate the online procurement of goods and services required by various government departments / organisations / PSUs.

Source: The Press Information Bureau (PIB)

Government support

The MSME Ministry promotes several beneficial schemes on a pan-India basis to boost MSME competitiveness through credit and financial assistance, skill development training, infrastructure development and technological and quality upgradation.

• Factoring Regulation (Amendment) Bill was passed to expedite the payment ecosystem for MSMEs

• Budget allocation for MSMEs saw a 42% increase from H157 billion in FY22 to H221.4 billion in FY23

• A H100 billion fund to support MSMEs in their journey towards modernisation and the adoption of new technologies

• Collateral-free automatic loans worth H3,000 billion was announced for MSMEs

• Extension of the Emergency Credit Line Guarantee Scheme (ECLGS) until March 2023

• The ‘IndiaXports 2021 Portal was launched to increase the number of exporting MSMEs and boost exports from this sector

Source: The Hindu Bureau

Notable growth drivers

• Formalisation of credit for MSMEs to reduce credit gap and promote financial inclusion

• Skill development initiatives to fast-track new MSME creation and enhance the value of existing ones

• Existing schemes like TReDS ensure the resolution of working capital needs

• The Ministry of MSME has worked to digitalise administration to make it more transparent. Investment in the construction of technology centres, increased internet penetration and customers adaptation to digital payments are unlocking a new growth potential for MSMEs

With the government promoting MSMEs on a large scale, it is evident that they are critical to Indias growth story. Young Indians are displaying their entrepreneurial spirit by venturing into unexplored service areas, with many findings recognition through new-age marketing tools and social media engagements. We believe there is a large untapped market out there, which will help us connect the right enterprises to the right buyers. This gives us the confidence that Just Dials business model is sustainable and will remain so in the long run.

BUSINESS OVERVIEW

Justdial is one of the leading Indian local search engine, enabling the digitalisation of small and medium businesses through multiple platforms across India.

Our self-curated database of over 36.5 million listings is a pioneering initiative in the industry and gives us an edge in the local search business. Our use of digitalisation and cutting- edge technology help us keep our customers and consumers (end-users) engaged. We also leverage emerging trends, such as the growing number of smartphone users, rising internet penetration, as well as governments digitalisation push, to fuel the growth of MSMEs.

Our offerings:

JD Mart

Launched in February 2021, Jd Mart is a B2B marketplace for SMEs that helps manufacturers, suppliers, distributors, wholesalers, exporters, importers, and retailers market their various products online. The platform offers digital product catalogues to businesses and aims at digitalising Indias businesses, especially those of SMEs, across categories. On the other side, buyers can discover quality vendors that offer a wide selection of products to suit their B2B needs.

JD Mart is fully integrated with Justdial Platform to provide unified search experience. Apart from that it is also available on web at www.jdmart.com and on JdMart apps (Android & iOS).

The following are some of the value-added services and features of JD Mart:

• Interactive content with videos, images, description, specification, price, minimum order quantity, digital and PDF catalogues

• Digital company catalogue carousel allows sellers to showcase their extensive range of offerings

• Related category carousel and tags such as ‘Trending, ‘Most searched, ‘Number of enquiries served, ‘Response time, ‘Manufacturer on listing help buyers in their decisionmaking process

• Personalised homepage based on various learnings from search history and business type

• Communication tools to send e-mail enquiry, call, and chat

• Request for Quotes (RFQ) where buyers can select industryleading qualifiers and can be used by buyers for bulk enquiry or single product, depending on their requirements

• Tools that simplify onboarding for sellers and help them run their online business. These include catalogue management, real-time lead management, RFQ monitoring and chats with buyers

• Analytics configured with highly useful features which include lead management, providing quick access to missed leads, hot leads, and insights in the form of dashboard to track their listing efficacy on the platform

• Tags for businesses like ‘Verified and ‘Trust that induce a strong sense of trust among the buyers and simplifies the selection process

• 24x7 support for query and complaint resolution JD Omni

JD Omni provides end-to-end cloud-based solutions for SMEs to move their services in line with the current trend of digitisation. This assists business owners in developing their own, customisable & transaction ready websites and integrating third-party resources for a variety of marketplaces. The software / apps are easy to install, simple to use, offer high customisation and features such as cloud point- of-sale, inventory, customer management and website builder software.

JD Pay

JD Pay is an easy solution for quick digital payments, enhancing convenience for both merchants and consumers (end-users). It provides a seamless, safe, and secure payment experience. With unified QR for merchants, payments can be made via Scan & Pay on the Justdial app. JD Pay supports cashless transactions, cards, UPI, net banking, and online wallets.

JD App

Our Android and iOS apps are designed to meet all consumer requirements. They provide simple, intuitive business discovery services with quick and relevant results. Some of the services include user ratings, location-based search on maps, recommendations based on proximity and ratings, viewing friends ratings, movies, streaming, news, sports, stocks, augmented reality (AR)-based listing finder, price discovery for hotels among others. The company details page now has sections covering meaningful content about the business like overview, catalogue, vibe check, menu, photos, deals, etc. Display of intelligent tags along with results will help users to make informed decisions. Users can post their questions directly to businesses which in turn can help them get faster answers.

Online self-sign-up

Our online self-sign-up programme allows any business to directly start their campaign on JD / JD Mart. This is a crucial step to digitalise our sales and customer-acquisition process. Traditionally, the bulk of our sales were generated by an able sales team, but now, the self-signup programmes open a new channel for monetisation, following the increased preference for Do-It-Yourself (DIY) solutions among new-age customers post the pandemic.

JD Ratings

JD Ratings tool helps get mobile-verified and unbiased ratings and reviews. With intelligent tag prompts, upload photos option and a robust audit mechanism to capture experiences of users on a 5 point rating scale. It helps SMEs gather more ratings & reviews and users in decision making. Also ability for businesses to respond to reviews is a step further to bring the users and businesses closer on the platform.

JD Analytics

JD Analytics dashboard provides insight for customer actions for their business, leads across various platforms, missed lead alerts, ability to respond to reviews, competition and category trends, customer feedback in terms of voice of customer and quick access to customer support. The JD Analytics dashboard serves as a one- stop solution for their daily needs.

BUSINESS MODEL Financial stability

Our various subscription plans follow a prepaid model, allowing customers the option to pay upfront for the entire tenure or make monthly advance payment plans through ECS. Since its inception, this policy has enabled us to enjoy negative working capital, nil receivables and maintain a debt-free balance sheet, with healthy revenue visibility.

Pan-India presence

About 62% of our revenue comes from the top 11 cities in India, with Tier-II and Tier-III cities constituting of ~38% of the topline. We stepped up our efforts to deepen our reach in smaller towns and cities that are witnessing a rapid growth in internet usage.

Customised revenue model

We offer customised packages at different price points based on the nature of the business, the geographies they cater to, and the type of listing plans opted for (premium or nonpremium), among other criteria. Our customers also get the flexibility to choose from the multiple payment plans (upfront or monthly) and modes of payment(digitally or through cheques).

Transparency in listings

Advertisers can choose between premium or non-premium packages. Premium advertisers get priority positioning in the category searches, commanding higher visibility. Nonpremium packages are listed in category searches in the order of the contribution made by the advertiser vis-a-vis others.

Empowering businesses

We are a unique platform for advertisers, comprising mostly of SMEs, to help them gain access to a vast pool of consumers at nominal costs and through flexible payment options. We run specialised campaigns across India with the objective to benefit our advertisers. As of March 31,2023, we had 538,220 active paid campaigns.

Strong ground force

We have 5,091 employees in tele-sales and 6,499 member strong feet-on-street sales force engaged in selling to SMEs. Our robust workforce network, deployed across 250+ cities, caters to 11,000+ pin codes in India.

SERVICE PLATFORMS

Our ‘anywhere, anytime offerings and services are available across multiple platforms such as web, mobile (application or browser), voice and SMS. As a pan-India player, our vision is to become a one-stop destination for all search and transaction- related needs of Indian consumers.

Web

As the first-movers in local search services in India, we had a significant advantage in this space. Over the years, we have developed a strong brand equity and enjoy good recall among businesses and consumers. Leveraging this strength, we continue to focus on product innovation, and strengthen the connection we have with our consumers. The Justdial website was given a complete redesign with Adaptive Layout to give users the best view of the desktop site. Our platform- agnostic presence and in-house-developed technology are key differentiators and enable us to provide a seamless user experience through open-source platforms. Standing by our philosophy of ‘Life Made Easy, we have integrated features such as predictive auto-suggest, voice search from desktop, filters upfront, maps and directions, ratings and reviews, operating hours, friend reviews, and searches organised by company, category and product.

Mobile

The tremendous boom in mobile internet users in India can be linked to higher disposable incomes, easy availability of value smartphones and cheaper internet data. We kept pace with this trend by updating our mobile platforms, including mobile website and JD apps (iOS and Android), on a regular basis, that could reduce page load time allowing faster searches for end users. Our mobile platforms are user-friendly, easy to navigate and visually appealing. Our mobile offerings, such as Chat Messenger, have become the most profitable and successful among our mediums, with mobiles contributing 86.1% to the total traffic witnessed in Q4FY23. Both our JD and JD Mart apps are regularly updated with the latest features to enhance user experience.

Voice and SMS

We began our journey as a voice-based search engine in the 1990s, when internet and mobiles were rare in India. Today, we enable pan-India voice-based search in multiple languages

- available 24X7 on a national hotline number (88888-88888) and eight local numbers specific to certain cities - to ensure a seamless customer experience. As an internet-independent service with minimal human interaction, SMS is the most appropriate method for local searches. While there has been a decline in the share of voice and SMS-based searches in recent years owing to rapid internet adoption, the technologies are still in use.

Extending the value proposition

We offer value-added services optimised for better user engagement including customer ratings and reviews, online movie finder, cricket, stocks, augmented reality (AR)-based search, among others. In Q4FY23, we attracted 159.3 million quarterly unique visitors, resulting in higher user engagement. We garnered 143 million ratings and reviews as on March 31,2023, a growth of 10.5% over March 2022.

Ensuring data Integrity and quality

Database is the backbone of our business. Hence, we ensure efficient data management along with timely upgradation and enrichment of our processes. Our database team regularly verifies and monitors relevant business details to reflect demand in the most accurate way. Geo-coding and data analytic tools make searches simpler and help to refine the list based on relevance and ask of the customer.

OPERATIONAL REVIEW

Backed by our strong value proposition and agile business management, we have experienced another year of robust performance

Some highlights of our operating performance

• Mobile traffic contribution witnessed a growth of 126 bps Y-o-Y to 85.1%, considering average quarterly unique visitors for FY23

• Our platforms generated 155.1 million average quarterly unique visitors for the year ended March 31, 2023

• ~4.6 million listings were added to our database during the year and the total active listings reached 36.5 million as of March 31, 2023, a growth of about 14.4% Y-o-Y

• 61.1% of the database, or 22.3 million listings, were geo-coded and we had 139.2 million images in active listings, as on March 31,2023

• Recorded high user engagement with 143 million ratings and reviews as on March 31, 2023

• Total active paid campaigns stood at 538,220 as on March 31, 2023

FINANCIAL REVIEW

The strong comeback of businesses as the economy reopened has led to a surge in our listings and has helped to recover from the pandemic related slowdown.

Particulars	FY19	FY20	FY21	FY22	FY23
Revenue from operations (H in million)	8,915.0	9,531.1	6,751.8	6,469.5	8,447.6
Other income (H in million)	929.6	1,397.1	1,495.2	1,221.6	1,419.1
Total income (H in million)	9,844.6	10,928.2	8,247.0	7,691.1	9,866.7
Adjusted Operating EBITDA* (H in million)	2,468.3	2,903.3	1,906.0	196.3	954.9
Adjusted Operating EBITDA Margin (%)	27.7	30.5	28.2	3.0	11.3
Profit before tax (H in million)	2,881.1	3,516.5	2,546.7	834.0	1,880.3
Profit after tax (H in million)	2,068.0	2,723.0	2,141.9	709.4	1,629.2
Net profit margin (%)A	23.2	28.6	31.7	11.0	19.3
Earnings per share - Basic (H)	30.95	42.00	33.92	9.51	19.34
Earnings per share - Diluted (H)	30.88	41.81	33.00	9.33	19.16
Cash flow from operations (H in million)	2,762.3	1,525.6	1,389.3	392.1	1,788.0
Return on net worth** (%)	20.9	23.8	16.8	3.0	4.6

*Adjusted Operating EBITDA is arrived at after adjustment of ESOP and one-time expenses to the Operating EBITDA.

ANet profit margin is calculated as profit after tax as % of operating revenue.

**Return on net worth (%) is calculated based on Average Net worth.

Financial highlights

• Operating revenue from search and other services increased by 30.6% Y-o-Y from H6,469.5 million in FY22 to H8,447.6 million in FY23.

• Other income increased by 16.2% from H1,221.6 million in FY22 to H1,419.1 million in FY23.

• Total income increased by 28.3% from H7,691.1 million in FY22 to H9,866.7 million in FY23.

• Adjusted operating EBITDA margin increased from 3% in FY22 to 11.3% in FY23, on account of increased revenue and decreased advertising expense.

• Profit before tax improved by 125.4% from H834.0 million in FY22 to H1,880.3 million in FY23. Profit after tax improved by 129.6% from H709.4 million in FY22 to H1,629.3 million in FY23. Net profit margin also increased from 11.0% in FY22 to 19.3% in FY23.

• Cash flows from operations stood at H1,788.0 million in FY23, up from H392.1 million in FY22. H237.2 million was spent on advertising and promotion in FY23 as against H647.3 million in FY22.

• Basic earnings per share stood at H19.34 in FY23 as against H9.51 in FY22.

Revenue

The SME subscription packages - premium (Platinum, Diamond, and Gold) and non-premium - form the bulk of our revenue. Our services are prepaid in nature and the SMEs can opt to subscribe via our upfront payment plan or can pay in monthly installments via ECS (Electronic Clearing Service). The unearned revenue recognised on our Balance Sheet reflects the amount received from customers where services are yet to be rendered.

Employee benefit expense

There was an increase in employee benefit expense from H5,040.3 million in FY22 to H6,510.0 million in FY23 due to increase in headcounts.

Finance costs

Finance cost, which are primarily for our rental lease liabilities, increased from H68.4 million in FY22, to H76.7 million in FY23.

Depreciation and amortisation expense

Depreciation and amortisation expenses increased by 7.6% from H298.7 million in FY22, to H321.6 million in FY23, due to increased asset base.

Other expenses

Other expenses decreased by 25.6% from H1,449.7 million in FY22 to H1,078.1 million in FY23 due to decreased advertising expense.

Income taxes

Income tax expenses increased from H124.6 million in FY22, to H251.1 million in FY23 due to an increase in taxable profit during the year.

Key financial ratios

Particulars	FY23	FY22	Y-o-Y Change
Interest coverage ratio3	25.5	13.2	93.5%
Current ratiob	7.8	8.4	(7.2)%
Debt equity ratioc	0.2	0.2	-
Operating profit margin (%)d	5.5	(6.0)	N.A.
Net profit margin (%)	19.3	11.0	832 bps
Return on net worth (%)f	4.6	3.0	157 bps

a Interest coverage ratio is calculated on interest over profit before interest, tax and exceptional items. The interest pertains to interest cost on the lease asset as per new accounting standard. The change is attributable to increase in profits during the year.

b Current ratio has decreased due to increase in current liabilities. ^c The company does not have any debt in form of any loans or borrowings.

Debt equity ratio is calculated on total liabilities over our total equity. ^d Operating profit margin is calculated on profit before interest and tax over our operating revenue whereas Net profit margins are calculated on profit after tax over operating revenue. The changes for both the margins are attributable to the increase in revenue and decrease in other expenses.

e Debtors and inventory turnover ratio is not applicable to us since we do not have any debtors and inventory.

f Return on net worth is calculated based on average closing net worth. The return on net worth increased mainly as a result of increase in profits during the year.

SEGMENT-WISE PERFORMANCE

We operate in a single reporting segment named ‘Search and Search-related Services.

OPPORTUNITIES

Please refer to Page 15 for more details on opportunities.

THREATS

Please refer to Page 28 for details on threats.

OUTLOOK

Our aim is to generate traffic on our platforms. Ultimately, we want to establish ourselves as the go-to platform for any business, from service providers to wholesalers and from manufacturers to retailers. Supported by the new efficiencies of improved cost structure, we expect business to cross pre- COVID levels soon. The acceleration in digital adoption among SMEs bodes well for our business, and currently, a large part of our traffic comes from mobile platforms. However, with the new website activated, we hope the contribution from desktop will see an increase too. Our unwavering focus is to emphasise on our core business, which is local search. We believe it has a huge potential as there is still a sizeable number of SMEs that need a digital platform to help them achieve visibility.

Technology and Infrastructure

Our team of more than 450 techies work to develop and maintain software applications to enable businesses to evolve, while ensuring faster go-to-market timelines. Supported by a strong engineering team and Internet Data Centres (in-house as well as external), our systems infrastructure, database and regular internet connectivity are maintained in a safe and secure manner. Our servers power open source platforms for various intranet and extranet applications. By using cutting- edge technology and new age tech stack we ensure we are at par with the adaptation as well as deployment in our environment which in turn helps us to provide a better user experience in terms of speed and reachability. With regular interventions, we have been able to manage frequent OS upgrades for our infra while maintaining zero downtime.

Data Security and Privacy

We are committed to safeguarding and protecting our database which contains the records of millions of our users, both individuals and businesses. We have robust controls and protocols in place and advanced technologies, like the Kona Site Defender, to prevent any data breaches or frauds. Other measures, such as client reputation solution, bot manager, page integrity manager, site shield, DNS security and services ensure best-in-class security for online and system resources. We also comply with ISO 27001 controls, in addition to PCI DSS. Our Information Security Management System (ISMS) framework revolves around risk management and risk mitigation, which is paramount to succeed in a digital environment.

Risk Management

Our Risk Management Committee (RMC) monitors our well- defined risk management framework. The core function of the RMC is to identify, define and mitigate risks, while navigating a dynamic business environment. A strong mitigation strategy helps us anticipate risks on time and manage them appropriately.

Nature of risk	Explanation	Risk mitigation measures
Technological risk	Inability to keep pace with the dynamic technological innovations	Just Dial has an expert technology team to ensure timely upgradation of the technology and infrastructure. Through constant innovation, the platforms and the technology are upgraded to provide a secure yet engaging user experience.
Operational risk	Inability to introduce innovative products and services could lead to a loss in customers and reduction in revenues	Just Dial always tries to understand the pulse of the user and update the offerings accordingly. We have been pursuing an aggressive product innovation strategy, which is evident from our various product offerings, such as JD Mart, Search Plus, JD Omni, JD Pay, JD Ratings etc.
Geographical risk	High dependence on the top 11 cities could lead to concentration of business	We follow a prudent strategy of steadily expanding our presence in the rapidly growing Tier II and III cities and towns through our strong sales team.
Competition risk	Increasing competition from global search engines and domestic players	Just Dial, being one of the first movers in the local search space, has been able to establish market leadership and develop a database that is difficult to replicate. Regular technological innovations have helped our Company provide a superior user experience. Just Dial is a commercial-intent oriented search engine and our presence in multiple categories across sectors has ensured revenue dependency is not concentrated on one particular category or sector.

HUMAN RESOURCE MANAGEMENT

Our team is the driving force of our success, and we value their contributions and hard work immensely. Nurturing our workforce with relevant learning and development programmes is a key organisational goal and a leadership mandate. Most of our training programmes can be accessed by our employees online, ensuring greater convenience and accessibility. We are focusing on automation to improve the efficiency of our services. As on March 31,2023, we had a total workforce of 15,320 employees.

INTERNAL AUDIT AND CONTROLS

A robust system of internal controls ensures the reliability of financial and other records used for preparing financial statements and other data, and the accountability of assets. This system is supplemented by a comprehensive programme of internal audits, reviews by the management and documented policies, guidelines, and procedures. Internal audit findings provide important inputs for risk identification and assessment. We carry out periodic assessments of our business to identify significant risks that impede business objectives.

FORWARD-LOOKING STATEMENT

The report contains forward-looking statements, identified by words like ‘planning, ‘expect, ‘will, ‘anticipates, and so on. All statements that address expectations or projections about the future, but not limited to the Companys strategy for growth, product development, market position, expenditures, and financial results, are forward-looking statements. Since these are based on certain assumptions and expectations of future events, the Company cannot guarantee that these are accurate or will be realised. The Companys actual results, performance or achievements could thus differ from those projected in any forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any such statements on the basis of subsequent developments, information or events.

The Company disclaims any obligation to update these forward-looking statements, except as may be required by law.