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.