{"id":160846,"date":"2024-05-06T11:39:13","date_gmt":"2024-05-06T15:39:13","guid":{"rendered":"https:\/\/44.250.171.167\/?p=160846"},"modified":"2024-05-06T11:39:14","modified_gmt":"2024-05-06T15:39:14","slug":"route-mobile-ltd-q4-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/route-mobile-ltd-q4-fy24-earnings-conference-call-insights\/","title":{"rendered":"Route Mobile Ltd Q4 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Route Mobile Ltd (ROUTE) Q4 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Revenue Growth and Industry Challenges<\/strong>\n<ul>\n<li>Highest quarterly revenue in Q2 and Q3 FY24.<\/li>\n<li>Good growth in H1 FY24.<\/li>\n<li>Headwinds in CPaaS industry since November 2023.<\/li>\n<li>Enterprise cost optimization initiatives.<\/li>\n<li>Shift in communication channels from global OTT players.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Acquisition Impact<\/strong>\n<ul>\n<li>Imminent Proximus deal closure.<\/li>\n<li>Bolsters product portfolio.<\/li>\n<li>Extends global footprint.<\/li>\n<li>Ignites innovation pipeline.<\/li>\n<li>Synergies to complement product, geographic, and customer base.<\/li>\n<li>Benefits from certain deals already visible like Vodafone deal.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>Fell short of revised guidance.<\/li>\n<li>Q4 FY24 revenue grew 0.8% YoY, declined 0.7% QoQ.<\/li>\n<li>FY24 revenue grew 12.7% YoY.<\/li>\n<li>Gross profit margin contracted in FY24.<\/li>\n<li>EBITDA grew 8.4% YoY in FY24, margin at 12.3%.<\/li>\n<li>PAT grew 11.7% YoY in FY24.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Outlook<\/strong>\n<ul>\n<li>Expecting significant growth in revenue and profitability in FY25, driven by synergies from Proximus acquisition.<\/li>\n<li>Working towards successful FY25.<\/li>\n<\/ul>\n<\/li>\n<li><strong>ILD Revenue Challenges<\/strong>\n<ul>\n<li>ILD revenue continues to decline.<\/li>\n<li>Growth witnessed in Indian ILD segment.<\/li>\n<li>Decline largely from rest of the world and Masivian.<\/li>\n<li>Vodafone Idea deal went live on April 1<sup>st<\/sup>.<\/li>\n<li>Growth in traffic observed.<\/li>\n<li>Expects further growth from larger players as leakages are blocked.<\/li>\n<li>Litigations identified, Vodafone team taking action.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Credit Facility Purpose<\/strong>\n<ul>\n<li>GBP10 million credit facility for Route UK.<\/li>\n<li>To provide bank guarantee as part of contractual arrangement, backed by fixed deposits in India.<\/li>\n<li>Approval required as deposits held in India.<\/li>\n<li>Not impacting cash flow improvement assumption.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Communication Channel Shift<\/strong>\n<ul>\n<li>Route Mobile in talks with OTT players to facilitate channel shift if needed.<\/li>\n<li>Offering APIs for multiple channels, including WhatsApp.<\/li>\n<li>WhatsApp price hike makes SMS more cost-effective for OTP authentication.<\/li>\n<\/ul>\n<\/li>\n<li><strong>EBITDA Margin Outlook<\/strong>\n<ul>\n<li>60 bps one-off impact on EBITDA margin in FY24.<\/li>\n<li>Impact unlikely to recur in FY25.<\/li>\n<li>Margin expected to improve by 60 bps in FY25.<\/li>\n<li>Dependent on related party transactions and approvals.<\/li>\n<\/ul>\n<\/li>\n<li><strong>New Product Performance<\/strong>\n<ul>\n<li>New product revenue down quarter-on-quarter, attributed to seasonality impact on Masivian.<\/li>\n<li>Overall, strong pipeline and growth potential for new products.<\/li>\n<li>Bullish on scaling new product business in coming months.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Messaging Business Challenges<\/strong>\n<ul>\n<li>Messaging impacted due to geopolitical issues in Russia and Ukraine.<\/li>\n<li>Lost customers in those regions.<\/li>\n<li>Working closely with Mr. Messaging to support new contract wins.<\/li>\n<li>Masivian performed well, only faced seasonality impact in Q4.<\/li>\n<li>Masivian revenue \u20b9514 million in Q4 FY24, down 17% QoQ.<\/li>\n<li>Messaging revenue \u20b91,795 million in Q4 FY24, down 7% QoQ.<\/li>\n<\/ul>\n<\/li>\n<li><strong>US and Europe Revenues<\/strong>\n<ul>\n<li>Major OTT clients in US and Europe were cautious on spending.<\/li>\n<li>Impacted overall ILD traffic growth.<\/li>\n<li>Expects recovery with WhatsApp pricing nearing ILD pricing parity.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Domestic Volumes Growth<\/strong>\n<ul>\n<li>Domestic volumes in India grew in double digits, despite 20% hike in NLD pricing.<\/li>\n<li>Able to close some large accounts last quarter.<\/li>\n<li>Have a strong pipeline for the current quarter as well.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Receivables Jump<\/strong>\n<ul>\n<li>Receivables increased by around \u20b9390 crores.<\/li>\n<li>Impacted cash flow conversion.<\/li>\n<li>Large payments received from OTT clients in first week of April 2024.<\/li>\n<li>Caused a temporary spike in receivables.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Volume vs. Revenue Growth<\/strong>\n<ul>\n<li>Transactions volume grew 17.5% in FY24 vs 12.7% revenue growth, attributed to significant increase in lower-realizing domestic volumes.<\/li>\n<li>ILD volumes degrew due to price increase.<\/li>\n<li>Overall transaction growth expected across channels.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Route Mobile Ltd (ROUTE) Q4 FY24 Earnings Concall Revenue Growth and Industry Challenges Highest quarterly revenue in Q2 and Q3 FY24. Good growth in H1 FY24. Headwinds in CPaaS industry since November 2023. Enterprise cost optimization initiatives. Shift in communication channels from global OTT players. Acquisition Impact Imminent Proximus deal closure. Bolsters [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,8],"tags":[8588,10169,5075],"class_list":["post-160846","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-technology-stocks","tag-consulting","tag-earnings","tag-it-services"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":160322,"url":"https:\/\/alphastreet.com\/india\/tata-consultancy-services-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":160846,"position":0},"title":"Tata Consultancy Services Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"April 12, 2024","format":false,"excerpt":"Key highlights from Tata Consultancy Services Ltd (TCS) Q4 FY24 Earnings Concall Revenue Growth Q4 revenue grew 2.2% YoY in constant currency, 3.5% in rupee terms. FY24 revenue grew 3.4% YoY in constant currency, 6.8% in rupee terms, 4.1% in dollar terms. Regional markets led growth at 26%, followed by\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":161429,"url":"https:\/\/alphastreet.com\/india\/tracxn-technologies-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":160846,"position":1},"title":"Tracxn Technologies Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"May 21, 2024","format":false,"excerpt":"Key highlights from Tracxn Technologies Ltd (TRACXN) Q4 FY24 Earnings Concall Financials Q4 FY24 revenue from operations: INR 20.3 crores. Q4 FY24 total income: INR 21.6 crores. FY24 revenue from operations: INR 82.8 crores (6% YoY growth). FY24 total income: INR 87 crores (7.2% YoY growth). Q4 FY24 EBITDA: INR\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":160516,"url":"https:\/\/alphastreet.com\/india\/cyient-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":160846,"position":2},"title":"Cyient Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"April 25, 2024","format":false,"excerpt":"Key highlights from Cyient Ltd (CYIENT) Q4 FY24 Earnings Concall Industry Trends China Plus One strategy driving new opportunities in regions like India. Significant technology changes across sectors like EV, communications, AI, Industry 4.0. Overall EMS industry is massive ($1 trillion) with 5.4% CAGR. High-mix, low-volume segment focused on mission-critical\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":160832,"url":"https:\/\/alphastreet.com\/india\/tata-technologies-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":160846,"position":3},"title":"Tata Technologies Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"May 6, 2024","format":false,"excerpt":"Key highlights from Tata Technologies Ltd (TATATECH) Q4 FY24 Earnings Concall Revenue Growth and Deal Wins Achieved 15.9% revenue growth in INR and 15% operating EBITDA growth for fiscal year '24. Revenue from operations grew at 29% CAGR and operating EBITDA grew at 35% CAGR over the last 3 years.\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":160919,"url":"https:\/\/alphastreet.com\/india\/cg-power-and-industrial-solutions-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":160846,"position":4},"title":"CG Power and Industrial Solutions Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"May 7, 2024","format":false,"excerpt":"Key highlights from CG Power and Industrial Solutions Ltd (CROMPGREAV) Q4 FY24 Earnings Concall Financial Performance Q4 FY24 sales grew 17% YoY, PBT grew 25% YoY. FY24 sales grew 16% YoY, PBT grew 24% YoY. Margins improved due to higher realizations, favorable product mix, and cost efficiencies. ROCE for FY24\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":161197,"url":"https:\/\/alphastreet.com\/india\/apar-industries-limited-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":160846,"position":5},"title":"Apar Industries Limited Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"May 15, 2024","format":false,"excerpt":"Key highlights from Apar Industries Limited (APARINDS) Q4 FY24 Earnings Concall Financial Performance Q4 FY24 consolidated revenue grew 9% YoY to INR 4,455 crores. EBITDA increased 3% YoY to INR 457 crores with 10.3% margin. PAT declined 3% YoY to INR 236 crores. FY24 consolidated revenue at all-time high of\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/160846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=160846"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/160846\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/154818"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=160846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=160846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=160846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}