C.E.Info Systems hosted
a conference call on January 16, 2024. 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 MrSourabhSomany-Company Secretary.
Key Takeaways of the call
Q3FY2024
In Q3FY2024, the company achieved all-time
high in revenue. Revenue stood at Rs 92.0cr in Q3FY2024 up 36.0% YoY.
A&M (Automotive & Mobility Tech) growth
was healthy at 19.5% YoY. Auto OEM volumes grew faster than industry growth.
The company had multiple wins and go lives.
C&E(ConsumerTech&EnterpriseDigitalTransformation)
business saw a sharp increase of 70.9% in Q3FY24 vs Q3FY23, based on nature of
certain contracts.
The company has commenced add revenue monetization
in Q3.
Revenue growth will sometimes be
contributed from CME segment and some times from A&M segment.
EBITDA stood at Rs38.6 cr in Q3FY2024 as
against Rs27.8cr up 38.0%. EBITDA margin increased to 42.0% in Q3FY2024 as
against 41.0% in Q2FY2023. However as reported EBITDA margin is 39% in
Q3FY2024. This is because the company had written of a provision to the tune of
Rs 2.5 crore however, the company has sold the IOT product and the same is
reported in other income. Otherwise the other income would have been Rs 8.22
crore instead of Rs 11.54 cr.
Map-led business EBITDA margin was strong
at 54.6%. IoT-led business EBITDA margin continued to expand quarterly to 10%
in Q3 FY2024, from 8.2% in Q2FY2024 versus 6.3% of Q1FY24, due to improved
product mix and operational efficiency.
PBT increased from Rs35.7cr in Q3FY2023 to
Rs 42.1crore in Q3FY2024 (Up 18.0%YoY) and PAT increased from Rs 29.7cr in Q3FY2023
to Rs 33.1 cr in Q3FY2024.
Cash balance stood at Rs 516cr as on December
31,2023in spite of dividend being paid.
9MFY2024
In 9MFY2024 revenues stood at Rs 272.5 cr
up 30.0% YoY. Both Map-led &IoT-led recorded strong growth YTD YoY (9MFY24
vs 9MFY23) to Rs 201 cr vs 164.9 cr &Rs 71.5 cr vs Rs 44.1 cr respectively.
Overall IoT-led revenue has grown 62% YTD
YoY, driven by healthy growth in devices.Share of subscription revenue to total
revenue increased from 28% in 9MFY23 to 38% in 9MFY24.
EBITDA stood at Rs116.6cr as against Rs88.4cr
in 9MFY2023. EBITDA margins improved to 43% in 9MFY2024 as against 42% in
9MFY2023.
Map-led EBITDA margins have expanded by 170
bps to 55.1% in 9MFY24 from 53.4% in 9MFY23 and EBITDA Margin of IOT business
has grown to 8.2% from 0.9% in 9MFY23, due to higher gross margin subscription
revenue growing 117% YoY.
PBT increased to Rs128.2 cr as against Rs104.9cr
and PAT increased to Rs96.2 cr as against Rs79.2cr in 9MFY2023.
Revenue growth is happening and margin is
expanding. The company’s strategy with IoT business along with map led business
is yielding results.
Advertisement
cost: The company incurred advertisement cost of Rs
5.4 cr in Q3FY2024. The same is incurred towards building brand awareness of Map
my India, increase consumer usage and consumer awareness of Mapple app.
The company will spend on advertisement
based on what is required in that particular quarter and is not pre-decided. It
will also depend on the macro conditions.
QIP: The shareholders have approved to raise Rs 500 crore through QIP on
Dec 29,2023. The company has one year time and the company will go ahead with
the QIP when the time is appropriate.
The company will use the money raised through QIP and
the available cash to grow business both organically and inorganically - through international diversification, growing
consumer business and growing drone business.
Investments will be made to grow the
business beyond 5 years.
Automotive: Electrical Vehicles require more features as such realizations are
higher in EV segment. Every EV being launched is going with the company’s
solution.
The company’s client retention is 100% in automotive
segment.
International
business: The company will follow the general
approach of product first and consumer led business. It will sell what customer’s
needs.
The company will add software solutions.
With respect to enhancing global maps it will do if required.
Acquisition: The business of acquired companies Kogo and Indrones are small. It
will take some time for them to grow and the company will leverage the
solutions of the acquired companies once they grow.
Drone: The company expects to keep getting customers for the Drone
business.
In the drone business, the company expects
revenue from selling drones, providing
drone based services and analytics and
also providing overall drone solutions.
B2C:
Mappls Brand and App saw traction in Q3
with a strong ATL & BTL 360-degree marketing push, while remaining
cost-efficient leading to much larger brand recall & app growth. The
consumer business also started a monetization push through in-app advertising
for a marquee brand. Mappls Gadgets traction and revenue
continue to grow.
Outlook: The company is exited of the opportunities in 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 (4-5 years) growing at a CAGR of 35-40%.
(This remains intact)
Mobility business revenue YTD is around Rs
70 cr which si around 25%. The company targets Rs 1000 cr overall revenue in
next 4-5years as such mobility business will in similar in percentage terms.
Management
commentary:
Commenting on the Q3FY24 and 9MFY24
results, RakeshVerma, Chairman & Managing Director, MapmyIndia, said “We’re
happy that MapmyIndia crossed for the first time a milestone of Rs 100 Cr+ quarterly Total Income, and again
achieved all-time high in Revenue in Q3FY24, growing 36% YoY to Rs 92 Cr, while
YTD Revenue has touched Rs 272.5 Cr. EBITDA in Q3FY24 grew 38% to Rs 38.6 Cr
and YTD grew 32% to Rs 116.6 Cr, with overall YTD EBITDA margin at 43%. YTD
Map-led EBITDA margin remains strong at 55.1%. IoT-led EBITDA margin has
expanded to 10% in Q3FY24 versus 8.2% in Q2FY24, and in YTD stands at 8.2%
expanding 730 bps YoY. YTD PAT is robust at Rs 96.2 Cr growing 21% YoY, with
PAT margin at 32%. Q4FY24 will be exciting. Not just are we happy with the
growth of our core B2B and B2B2C business, we are also pleased to see our
consumer business take shape with increased brand awareness & product
uptake.”
RohanVerma, CEO & Executive Director,
MapmyIndia, said “We are excited about Q4FY24, with a strong order book build
up based on very large new wins and look forward to sharing developments
shortly. YTD (9MFY24) Revenue growth was broad-based, with A&M up 19.5%and
C&E up 43.1% on the market side, while Map & Data was up 37.6% and
Platform &IoT was up 26.5% on the product side. We had multiple wins and
go-lives across our Auto OEM NCASE suite with an exciting funnel ahead. We also
had multiple wins and go-lives across consumer tech companies & enterprises
and in the government based on Map-led & IoT-led digital transformation. We
started a strong 360-degree marketing push for our consumer business, which was
highly effective, yet cost-efficient in increasing MapplsMapmyIndia brand
awareness and product traction. We’re happy to see the start of ad-revenue
monetization of our App & sales growth of our Gadgets.
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