Profit before tax dropped 9.11% to Rs 109.39 crore in Q4 FY24 as compared with Rs 131.63 crore in Q4 FY23.

EBITDA was reported at Rs 120.4 crore in Q4 FY24 compared to Rs 132.9 crore in Q4 FY23 and Rs 124 crore in Q4 FY23, translating in Y-o-Y de-growth of 9.4% and sequential de-growth of 2.9%.

EBITDA margin fell to 11.8% in Q4 FY24 as compared with 12.1% in Q3 FY24 and 13.2% in Q4 FY23.

In Q4 FY23-24, provision of Rs 26.54 crore was accounted for an onerous contract. However, the terms of the contract are being re-negotiated, on grounds of geo-political concerns and changes in market dynamics therein as per the provisions of the contract.

Full year basis, the company’s consolidated net profit jumped 16.73% in FY24 as compared with Rs 333.11 crore posted in FY23. Revenue from operations increased 12.72%YoY in FY24.

Rajdip Gupta, MD & Group chief executive officer, Route Mobile, said, “FY24 has been a remarkable year for Route Mobile. We registered our highest quarterly revenues in Q2 & Q3 and registered good growth in H1. We continue to acquire some large customers and deliver unique solutions across industries. I am very proud of the team and congratulate them on a great performance. We were awarded ‘Enterprise MarTech Vendor of the year’ by e4m & ‘Best Mobile Authentication Solution’ by Juniper Research in Q4.”

He further added, “The CPaaS industry is witnessing some headwinds since November 2023 in terms of enterprise cost optimization initiatives, particularly from global OTTs and shifts in communication channels. We remain vigilant of these changes and our strategic roadmap is well aligned to leverage the emerging opportunities. We have secured strategic deals and laid the groundwork for a stronger FY25.”

Meanwhile, the company’s board has declared a dividend of Rs 2 per share for FY24.

Further, the board has approved availing financial assistance by way of SBLC Facility of Rs 100.0 crore from ICICI Bank in order to enable ICICI Bank IBU Gift City for extending Bank Guarantee facility proposed to Route Mobile (UK) (Borrower), wholly owned subsidiary of the company.

Route Mobile ("RML") is a cloud communications platform service provider, catering to enterprises, over-the-top (OTT) players and mobile network operators (MNO). RML's portfolio comprises solutions in messaging, voice, email, SMS filtering, analytics and monetization. RML has a diverse enterprise client base across a broad range of industries including social media companies, banksand financial institutions, e-commerce entities and travel aggregators. RML is headquartered in Mumbai, India with a global presence in the Asia Pacific, the Middle East, Africa, Europe and North America.