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.”