CE Info Systems Ltd Q4 FY24 Earnings Conference Call Insights

Key highlights from CE Info Systems Ltd (MAPMYINDIA) Q4 FY24 Earnings Concall

• Financial Performance
  • Revenue from operations grew 35% to INR379.4 crores.
  • Open order book grew 49% to INR1,372 crores.
  • Annual new order bookings grew 63% to INR834 crores.
  • Revenue from operations CAGR of 38% over three years.
  • Quarterly revenue from operations crossed INR100 crores for the first time.
• Segments Performance
  • IoT-led business revenue grew 91% to cross INR112 crores.
  • IoT-led business EBITDA grew 13x to INR13 crores.
  • IoT-led business EBITDA margin expanded from 1.7% in FY23 to 11.6% in FY24.
  • Consumer tech and enterprise digital transformation revenue up 49% to INR194 crores.
  • Automotive and mobility tech revenue up 23% to INR186 crores.
  • 5 plus million new vehicles built with MapmyIndia solutions, up from 1.9 million in FY23.
  • IoT devices installed grew 52% to 2.9 plus lakh units.
• Growth Drivers
  • Increasing adoption of mapping and IoT solutions across industries.
  • Growing demand from automotive and mobility sectors, including EVs.
  • Expanding consumer user base (20 plus million app downloads).
  • Strong order book and new order bookings
• Strategic Focus
  • Continuous innovation in products and solutions (apps, IoT, drones, digital twins, software).
  • Integration of acquired companies (G2P merger completed).
  • Prudent marketing efforts to drive consumer business.
  • Target of crossing INR1,000 crore revenue by FY27/FY28.
• IoT Business
  • IoT business saw strong growth of 91% in revenue, crossing INR112 crores.
  • EBITDA for IoT business grew 13x to INR13 crores.
  • EBITDA margin for IoT business expanded from 1.7% in FY23 to 11.6% in FY24, reaching 17.5% in Q4 FY24.
  • Growth driven by increasing device sales and subsequent SaaS revenue.
  • Margins expected to further improve as more sold devices generate SaaS income.
  • Uniqueness of combining map-led and IoT-led business models seen as an advantage
• Map-led Business
  • Grew around 20% in FY24.
  • Significant boost expected from the INR400 crore 5-year contract with Yundey Kiya, starting from Q2 FY25.
  • Maintained around INR66 crores per quarter revenue in FY24.
  • INR400 crore contract included in the new order bookings of INR834 crores for FY24.
• Key Partnerships
  • Partnership with Boat for smartwatch, offering navigation experience using MapmyIndia’s SDK and APIs.
  • Revenue model based on per-device licensing.
  • Part of the consumer tech and enterprise digital transformation segment.
• Order Book Dynamics
  • Open order book grew 49% to INR1,372 crores.
  • Order timelines remain broadly similar to previous years.
  • Fixed-price order book grew by 7% YoY, while volume-based orders also contribute to revenue.
  • Company focused on maximizing revenue based on customer preferences.
• Consumer Business
  • MapmyIndia crossed 20 million user downloads for Maplets app in Q4 FY24.
  • Focus on monetizing the consumer app in FY25.
  • Secured contract from Cadbury for B2B and B2C side during Diwali period.
• International Expansion
  • Efforts on track, expecting developments in FY25.
  • Currently focused more on map-led and automotive-led expansion.
  • Mode includes leveraging maps, customer base, and technology built over 25 years.
• Government Business
  • Addressable market estimated at INR1 lakh crore by 2030 as per government.
  • MapmyIndia’s approach is through products and platforms, not pure services.
  • Focus on licensing IP rather than one-time service revenue.
• Inorganic Growth
  • No immediate plans for acquisitions in digital twin space.
  • Developing own technology organically, leveraging map data, platforms, and solutions.
  • Claim to be far more advanced than competitors in this space.
• Technical Service Outsourcing
  • Cost increased from INR3 crores to INR8.5 crores in Q4 FY24.
  • Outsourcing costs expected to increase as business grows.
  • Not related to map updation, part of delivering solutions to customers.
• Drone Business
  • Drones are part of MapmyIndia’s integrated offerings.
  • Providing drone-based services as part of overall solutions.
  • Building capabilities in hardware, software, and digital twin for drones.
  • Not yet separating drone-led business revenue, currently part of map-led segment.