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”.
|