C.E.Info Systems
hosted a conference call on April 24, 2023. In the conference call the company
was represented by Mr RakeshVerma-Chairman and Managing Director,
Mr RohanVerma-CEO, MrAnuj Jain –CFO and Mr Sourabh Somany-Company Secretary.
Key Takeaways of the call
The company had a stellar year in FY2023.
Revenue grew by 41% YoY to Rs 282 cr in FY2023 and PAT grew 24% YoY to Rs 108
cr. Revenue growth was broad based.
On the markets side Consumer Tech &
Enterprise Digital Transformation revenue grew by 48% YoY to Rs 130 cr, and
Automotive & Mobility Tech revenue up 34% to Rs 152 cr. The company’s
automotive volumes have grown more than 40% while the industry has grown by
less than 20%.
1.9+ million new vehicles (4-wheelers,
2-wheelers and CVs, across ICE and EV segments), went built-in with
MapmyIndiaMappls in FY23, up 46% from 1.3 million during FY22. The company has
done lot of upselling and also gained lot of orders from automotive and
mobility business.
In Q4 FY2023 automotive and Mobility
revenue grew by 2%. This was primarily as Q4 is traditionally a seasonally weak
quarter.
EBITDA margin in FY2023 for the company as a whole
stood at 41.9% while for Map led business (core business of the company) stood
at 52.6%.
Revenue from the IoT led business grew 140%
YoY, with the EBITDA margins growing from 1% in the 9 months of the financial
year, to 4% in Q4 FY23, as SaaS income was a kicker.
IoT led business revenue in FY2023 is
around Rs 59 cr of which Rs 17 cr is from Saas and the balanceRs
42 cr is from hardware.
The company is looking at Internet of
Business ( IoT) in a very positive way. The exciting aspect of the IoT-led
business is that while the company sold 1.9 lakh IoT devices in FY23, more than
3x that in FY22, there is a potential addressable market of 20 crore vehicles
that can be tapped in future, showing the large headroom there is for
MapmyIndia''''sIoT-led hardware and SaaS business.
The company will do organic investment in
IoT led business.
Cash: The Company has historically raised only Rs 124 cr. The company
cash balance has increased from Rs 381 cr to Rs 485 cr as on mar 31,2023. The
company is highly capital efficient.
Customer
diversification: Now 54 customers form 80% of the
company’s revenues, earlier it was around 35 customers and a year before it was
25. This indicates customer diversification and also retention rate is also
high at 90%.
Employees: The employee strength stood at 1170 employees as on March 31 of
which 900+ were technical. The attrition rate stood at 16.9%.
Marketing
expenditure: The Company will calibrate marketing
expenditure and align it with the growth.
Capital
work in progress: The company sells IoT devices
either on outright sale or on rent. Renting of IoT devices has resulted in
increase in capital work in progress from
Order
Book: Open Order Book grew 31% to Rs 918 Cr by the
end of FY23 from Rs 699 Cr at the beginning of the year, based on Annual New
Order Bookings of Rs 512 Cr.
Mapled is the majority of the open order of
about Rs 700 cr out of Rs 918 cr which reflects that the map led business is
also tend to grow fast.
The company acquired 250+ new B2B and B2B2C
customers – including many businesses and enterprises across industry
verticals, new-age consumer-tech companies and key government organizations -
raising its customer base to 850+ customers for its MaaS, SaaS and PaaS
offerings, giving the company a great platform to up-sell and cross-sell its
wide variety of offerings and use-cases to existing and new customers.
However not all customer acquisitions
reflect in company’s open order-book.
The company has plans in consumer space in
times to come and CCI order against inbuilt Google maps and more brand
visibility of company’s products will add to it.
Outlook:
The company’s aim is to grow revenues,
absolute EBITDA and PAT.
The company aims to achieve at least 40%
plus revenue growth in FY2024 and EBITDA margins of 40%+. However, the company
will look at larger opportunities at the interest of the company.
The company’s auto business is quite strong
and the company is positive on automotive business. More and more two wheelers
are using company’s solutions. Internationally the attached maps is around 50-60% of the sales while in
India it is only 9-10% as such has huge opportunity to grow.
Dividend:
The
Board has approved for the declaration of final dividend of Rs 3 per equity
share bearing face value of Rs 2/-each.
Management Commentary:
Commenting
on the performance Mr Rakesh Verma, Chairman
& Managing Director, MapmyIndia, commenting on the Full Year and Fourth
Quarter of FY23 results, said "MapmyIndia continues its stellar
performance year after year, and for FY2023, recorded a revenue from operations
of Rs 282 Cr (up 41%), a PAT of Rs 108 Cr (up 24%), and an EBITDA margin of
41.9%. MapmyIndia has maintained a healthy EBITDA margin in its Map-led
business of 52.6%, while investing in the IoT-led business, which is already
demonstrating good results. Revenue from the IoT led business grew 140% YoY,
with the EBITDA margins growing from 1% in the 9 months of the financial year,
to ~4% in Q4 FY23, as SaaS income increased. The IoT-led business is exciting
because, while we sold 1.9+ lakh IoT devices in FY23, 3x what we did in in
FY22, the potentially addressable market is of 20 crore vehicles, showing the
large headroom there is potentially to be tapped for MapmyIndia''''s IoT- led
hardware and SaaS business. Finally, once again we declared a dividend this
year, to demonstrate our gratitude & commitment to shareholders for
continuing a long-term journey with MapmyIndia".
Mr Rohan Verma, CEO & Executive Director, MapmyIndia,
said, "Our overall revenue growth of 41% to Rs 282 Cr during FY2023 was
broad-based with Consumer Tech & Enterprise Digital Transformation revenue
up 48% YoY to Rs 130 Cr, and Automotive & Mobility Tech revenue up 34% to
Rs 152 Cr on the markets side. On the products side, Our Map & Data revenue
grew 34% to Rs 112 Cr and Platform & IoT revenue grew 45% to Rs 170 Cr.
1.9+ million new vehicles (4-wheelers, 2-wheelers and CVs, across ICE and EV
segments), went built-in with MapmyIndia Mappls, up from 1.3 million during
FY22, showing faster than industry growth uptake of our Auto N-CASE suite of
map and technology solutions amongst automotive OEMs, including new-age EV
companies. We acquired 250+ new B2B and B2B2C customers – including many
businesses and enterprises across industry verticals, new-age consumer-tech companies
and key government organizations - raising our base to 850+ customers for our MaaS,
SaaS and PaaS offerings, giving us a great platform to up-sell and cross-sell
our wide variety of offerings and use-cases to existing and new customers.
Last, but not the least, our Open Order Book grew 31% to Rs 918 Cr by the end
of FY23 from Rs 699 Cr at the beginning of the year, based on Annual New Order
Bookings of Rs 512 Cr, which bodes well for the future of MapmyIndia''''s B2B and
B2B2C business.
Looking into the upcoming year, we intend to incubate
potentially large, yet unlocked,
opportunities
for our company, including in the consumer app and gadgets space, based on the rave reviews
our consumer facing Mappls App and Mappls Gadgets are receiving, and in the
fast-growing drone space, where we have been preparing strong full-stack drone capabilities,
through organic and inorganic means, to address the fast-growing market for drone solutions.
We of course continue to relentlessly innovate, and will continue to invest in enhancing our
existing products and offerings, and also in expanding the visibility and reach of the Mappls
MapmyIndia brand & offerings.”
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