C.E.Info Systems hosted a conference call on August 07, 2023. In the conference call the company was represented by Mr RakeshVerma-Chairman and Managing Director, Mr Rohan Verma-CEO, Mr Anuj Jain –CFO and Mr Sourabh Somany-Company Secretary.

Key Takeaways of the call

The company had a strong performance in Q1FY2024 with all-time highs in Revenue, EBITDA, and PAT.

Revenue grew 37.5% in Q1FY24 to Rs 89.4 Cr. Revenue growth was broad based across with A&M (Automotive & Mobility Tech) up 24% and C&E (Consumer Tech & Enterprise Digital Transformation) up 51% on the market side.

A&M volumes for the company grew faster than the industry volumes.

On the products side, Map & Data was up 41% and Platform &IoT was up 35%.

The company is happy with the large number of customer golives that occurred during Q1FY24 including many consumer technology companies and start-ups, corporates across industry sectors, automotive OEMs including Electric Vehicles and 2- Wheelers, and government and logistics/mobility fleets.

The company is happy with the surge in interest and usage of its consumer-facing MapplsMapmyIndia app amongst users, which resulted in Mappls app becoming the top app in the app store. This bodes well for the B2C future of the company, in addition to the B2B and B2B2C where the company has a strong presence.

EBITDA margin grew by 25.2% YoY to Rs 37.4 cr with overall EBITDA margin of 41.9%.  Map-led business EBITDA margin was strong at 54.1%. IoT-led business EBITDA margin continued to expand quarterly and was at 6.3% in Q1FY24 versus 4.0% of Q4FY23, as SaaS income from IoT grew.

Geographical diversification:The company has expanded to more than 200 countries geographically, however, the company does not expect any revenues from outside India in FY2024.

The company is actively building maps in international geographies.

The company does not have any government protection in India.

B2C segment: The company is not generating any revenues in B2C segment. However is witnessing good traction in the same. The company is witnessing lot of people downloading mappls app. The company has not set any timeline  to monetize the same.

IoT Business: The company sold 1.9 lakh IoT devices in FY2023 and is on track in FY2024 and is moving well. 

EBITDA margin of IoT business increased from 4% in Q4FY2023 to 6.3% in Q1FY2024.

Operating leverage is kicking in as SAAS (Software as a service) revenue has started flowing.

Hardware cost is not a pass through in IoT led business.

Government and mobility: The revenue contribution from Government and Mobility to total revenues is very low. Government revenue is less than 10%.

The company has gained one business from defence sector and is in the middle of execution. The company plans to expand the business. It is important area for doing strategic things.

C&E:In the C&E vertical, the company has blue-chip clients in BFSI and fintech space and is adding more and more customers. The company is adding more use cases in this space and has a road map for growth.

A&M: in A&M, the company’s clients are OEM(Original Equipment Manufacturers). The company earns revenues when the vehicle is sold and some additional year every year.

Drones business:

The company has diversified into drones business.

The company does not manufacture drones on its own and has made inorganic investments in Joint Ventures and partnerships to provide reliable capabilities and sources for the requirement.

The customers need map or data of land records or demography and mapping solutions. The company as part of the same will fly the drones if required to provide solutions for the clients.

Outlook:

The growth for the company is broad based and coming from across market segments and products.

The company had strong order book of Rs 918 cr at the beginning of the year and plans to execute the same well. The company has added more than 250 + clients, growth will be good once the ramp up of the clients happens.

The company targets to cross revenues of Rs 1000 cr in next 4-5 years and expects revenue growth of 40% YoY in FY2024.

Management Commentary:

Commenting on the Q1 FY24 results, RakeshVerma, Chairman & Managing Director, MapmyIndia, said “We are delighted with our Q1FY24 results wherein MapmyIndia achieved all-time highs in Revenue, EBITDA, and PAT. Revenue grew 37.5% in Q1FY24 to Rs 89.4 Cr. EBITDA grew 25.2% to Rs 37.4 Cr, with an overall EBITDA margin of 41.9%. Map-led business EBITDA margin was strong at 54.1%. IoT-led business EBITDA margin continued to expand quarterly and was at 6.3% in Q1FY24 versus 4.0% of Q4FY23, as SaaS income from IoT grew. Q1FY24 PAT also reached an all-time high of Rs 31.8 Cr, growing 31.4% YoY. During Q1FY24, we outlined a 5-year vision of a growth roadmap for the company, and are putting in place the requisite foundations that will drive long-term success of the company. We are also delighted with the surge in interest and usage of our consumer-facing MapplsMapmyIndia app amongst users, which resulted in Mappls app becoming the top app in the app store recently. This bodes well for the B2C future of the company, in addition to the B2B and B2B2C where we have been traditionally strong.”

RohanVerma, CEO & Executive Director, MapmyIndia, said “Our strong Q1 YoY revenue growth was broad-based with A&M (Automotive & Mobility Tech) up 24% and C&E (Consumer Tech & Enterprise Digital Transformation) up 51% on the market side. On the products side, Map & Data was up 41% and Platform &IoT was up 35%. We’re happy with the large number of customer go-lives that occurred during Q1FY24 including many consumer technology companies and startups, corporates across industry sectors, automotive OEMs including EVs and 2-Wheelers, and government and logistics/mobilityfleets. This bodes well for our future growth. Our B2B and B2B2C product offerings across maps, APIs, IoT, drones, N-CASE automotive suite, enterprise digital transformation and geospatial platforms continue to expand in capabilities and extend their market leadership. Our consumer-facing Mappls App, with unique features such as 3D Junction Views, end-toend trip costs including toll and fuel, and useful safety alerts such as speed limits, speed breakers, sharp curves etc – are getting rave reviews. Similarly, our B2C focused Mappls Gadgets which enable safety, convenience and entertainment on-the-go for vehicle owners, drivers and passengers are gaining traction too. These are initial steps in our efforts to expand our B2C business going forward”.