C.E.Info Systems hosted a conference call on November 01, 2023. In the conference call the company was represented by Mr Rakesh Verma-Chairman and Managing Director, Mr Rohan Verma-CEO, Mr Anuj Jain –CFO and Mr Sourabh Somany-Company Secretary.

Key Takeaways of the call

Q2FY2024

In Q2FY2024, the company achieved all-time highs in revenue, EBITDA and PAT. Revenue stood at Rs 91.1 cr in Q2FY2024 up 19.4% YoY.

A&M (Automotive & Mobility Tech) growth was healthy at 22.9% YoY. Auto OEM volumes grew faster than industry growth.

C&E(Consumer Tech & Enterprise Digital Transformation)Q2 growth was steady at 15.7% YoY.

EBITDA stood at Rs 40.5 cr in Q2FY2024 as against Rs 30.6 cr up 32.5%. EBITDA margin increased to 44.5% in Q2FY2024 as against 40.1% in Q2FY2023. Map-led business EBITDA margin was strong at 56.4%. IoT-led business EBITDA margin continued to expand quarterly to 8.2% in Q2FY2024 versus 6.3% of Q1FY24, due to improved product mix and operational efficiency.

PBT increased from Rs 35.5 cr in Q2FY2023 to Rs 44.2 crore in Q2FY2024 (Up24.5% YoY) and PAT increased from Rs 25.4 cr in Q2FY2023 to Rs 33.1 cr in Q2FY2024.

Cash balance increased to Rs 518 cr as on September 30,2023.

H1FYFY2024

In H1FY2024 revenues stood at Rs 180.5 cr up 27.7% YoY.

EBITDA stood at Rs 78 cr as against Rs 60.5 cr in H1FY2023. EBITDA margins improved by 40 bps YoY to 43.2% for H1FY2024,with operating leverage kicking in across business units.

PBT increased to Rs 86 cr as against Rs 69.2 cr and PAT increased to Rs 65.09 cr as against Rs 49.6 cr in H1FY2023.

Margins: The company will continue to make investments at various levels. The company will also continue to make investments to improve efficiencies.

Receivables: The company’s recivables increased to Rs 31 cr as on Sep 30,2023 as billing was quite heavy in the month of September,2023. Collections are going on well, they are not overdue and the company is not concerned. However, the company does make provisions on a conservative side.

CME segment: In CME segment revenues are lumpy. Lumpiness depends on  what kinds of contracts and type of customers. Sometimes revenues from e-commerce players and fintech customers are lumpy in nature.

OLA: Ola revenue contribution is less than 1% of the company’s revenues. They continue to be the customers and are using company’s mappls.

Drone: The company expects to keep getting customers for the Drone business. It expects business in Drone from Maps, IoT and Drone hardware. The company expects huge opportunity from Drone and Drone solutions in the areas of urban development, real-estate, mining  and defence.

Competition:  The company is the only company which provides complete service with respect to Maps and maps based solution as such it provides lot of opportunity for the company to cross sell and up sell as such provides company big moat, network effect and reliability. There are a lot of companies which provide some solutions but not holistic or complete solutions.  The competitors do lot of experiments and create lot of noise but the company is not worried but is watchful.

B2C: B2C business will take some time to build-up. The company sees N number of use cases for monetisation including upselling of Gadgets and through subscription.

The company’s B2C Mappls App has been receiving significant traction recently, and now has 11 Million + lifetime downloads, including  10 Million+ on Android and 1 Million + on iOS.

Outlook: The company is exited of the opportunities in H2FY2024 particularly Q4FY2024. The company has acquired lot of customers, funnel and order book is strong which provides confidence to the company.

The company plans to cross revenue mile stone of Rs 1000 cr by FY2027/FY2028 growing at a CAGR of 35-40%.

Management Commentary:

Commenting on the performance Rakesh Verma, Chairman & Managing Director, MapmyIndia, said “During Q2FY24 MapmyIndia again achieved all-time highs in Revenue, EBITDA, and PAT. Revenue grew 19.4% YoY to Rs 91.1 Cr and EBITDA grew 32.5% to Rs 40.5 Cr, with overall EBITDA margin was at 44.5%. Map-led business EBITDA margin was strong at 56.4%. IoT-led business EBITDA margin continued to expand quarterly to 8.2% in Q2FY24 versus 6.3% of Q1FY24, due to improved product mix and operational efficiency. Q2FY24 PAT also reached an all-time high of Rs 33.1 Cr, growing 30.3% YoY, with PAT margin at 33.4%. Besides our existing, core B2B and B2B2C business, we’re very happy that our B2C Mappls App has been receiving significant traction recently, and now has 11 Mn+ lifetime downloads, including 10 Mn+ on Android and 1 Mn+ on iOS.”

Rohan Verma, CEO & Executive Director, MapmyIndia, said, “We are quite excited about the 2nd half of the year, especially Q4, based on the funnel of opportunities ahead for us. H1 Revenue growth was broad-based, with A&M up 23.5% and C&E up 32.2% on the market side, while Map & Data was up 22.6% and Platform & IoT was up 31.5% on the product side. Attach rates and adoption across the spectrum of our Auto OEM NCASE solutions increased. We achieved business with Defence customers, an important market segment. Beyond these, we had multiple wins and go-lives across many industry verticals for our full range of Map-led and IoT products and solutions. Our B2C Mappls app has seen tremendous response in the last few months, opening up an additional growth dimension and optionality for our business in the future.”