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.”
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