About the Company
C E Infosystems Limited (“Map My India”) was incorporated on February 17, 1995. The company is a data and technology products and platforms company, offering proprietary digital maps as a service (“MaaS”), software as a service (“SaaS”), and platform as a service (“PaaS”). They are India’s leading provider of advanced digital maps, geospatial software, and location based IoT technologies.
Q4 FY22 Updates
Financial Results & Highlights
| Standalone Financials (in Crs) | ||||||||
| Q4FY22 | Q4FY21 | YoY % | Q3FY22 | QoQ % | FY22 | FY21 | YoY% | |
| Sales | 66.6 | 55.9 | 19.1% | 49.3 | 35.1% | 237.1 | 192.1 | 23.4% |
| PBT | 33.9 | 24.7 | 37.2% | 19 | 78.4% | 115 | 79 | 45.6% |
| PAT | 23.5 | 20.4 | 15.2% | 15.7 | 49.7% | 85.5 | 60.1 | 42.3% |
| Consolidated Financials (in Crs) | ||||||||
| Q4FY22 | Q4FY21 | YoY % | Q3FY22 | QoQ % | FY22 | FY21 | YoY% | |
| Sales | 68.6 | 56 | 22.5% | 52 | 31.9% | 242 | 192.2 | 25.9% |
| PBT | 33.5 | 24 | 39.6% | 21.7 | 54.4% | 117 | 78.8 | 48.5% |
| PAT | 22.5 | 19 | 18.4% | 18.5 | 21.6% | 87 | 59.8 | 45.5% |
Detailed Results:
- The company had a decent quarter with a 22% YoY rise in consolidated revenues and a 18% YoY rise in consolidated PAT.
- FY22 revenues were up 26% YoY and PAT was up 45.5% YoY.
- EBITDA margins for FY22 expanded to 43% from 35% the previous year. PAT margins expanded to 36% from 31% the previous year.
- The cash and cash equivalents of the company stand at 382 Cr.
- In Market Segment, A&M revenue has grown 41% YoY for FY22. C&E revenue has grown 21% YoY for FY22.
- In Product Segment, revenue from Map & Data is up 37% YoY. Platform and IoT revenue grew 28% YoY for FY22.
- The company’s Open Order Book as of April 1, 2022, stood at Rs. 699.6 Crores vs Rs 377.5 Cr as of April 1, 2021.
- The No. of Customers on MaaS, SaaS & PaaS platforms in FY22 grew by more than 100 to 600+ customers.
- New deal wins in A&M segment for Q4FY22 included :
- Indian Motorcycle OEM signed up and went live
- Indian EV 2-Wheeler OEM startup signed up
- Japanese Mobility as a Service provider signed up
- Largest 4-wheeler OEM went live with their next-gen connected vehicles integrated with the company’s maps & technologies
- Nissan partnered for Road Safety initiative by using the company’s Road Safety Platform
- New deal wins in C&E segment included :
- 2 Large FMCG majors went live with geospatial analytics and workforce automation use cases respectively
- Large E-commerce company signed up for geospatial analytics
- Large CRM SaaS company signed up for integrating map APIs for providing their customers with in-built location intelligence
- Large Global Social Media App integrated map data to provide a better location-based end consumer experience in India
- A Smart City signed up for GIS-based Property Tax Solutions
- State Urban Development Authority signed up for Drone and 3D mapping-based GIS System with multiple end use cases
- Large Safe City in South India signed up for Crime Mapping & Analytics
- Large State Road Transport Corporation signed up for Public Transport Platform
Investor Conference Call Highlights
- The company’s R&D expenses were approximately Rs.3 Cr in FY21 which increased to Rs.5 Cr in FY22.
- The management states that there are five growth engines to its automotive business – selling navigation systems, connected systems, ADAS, autonomous systems, shared mobility as well as an electric mobility system.
- The company acquired a 76% stake in Gtropy to give a specific focus on the IoT and logistic SaaS part of its business.
- 1.3 million new vehicles in FY22 were integrated with the company’s maps & technologies vs 1 million new vehicles in FY21.
- The company’s 35 customers contributed 80% of its total revenue while 92% of the large customers were retained in FY22.
- The number of employees increased in FY22 to 936 from 734 YoY.
- The attrition rate increased from 13.5% to 17.45% YoY.
- The Govt contribution in the current mix is 10% & the management has put an upper cap limit of 20% on that.
- The company launched Maapls to service the global market.
- The management expects to spend 2-3% of revenue on R&D which majorly constitutes the cost of people employed in the R&D segment.
- The management expects the EBIDTA margin to be in the range of 35-43%.
- The employee costs were lower by Rs.5 Cr in Q4 due to the reversal of a provision created for employee incentives & bonuses.
Analyst’s View
C E Infosystems (MapMyIndia) is a leading provider of advanced digital maps, geospatial maps, and location-based IoT technologies. Its business is seasonal with heavy revenue being booked in the latter half of the year due to the nature of its revenue recognition and contracts. Its customers include the government and big companies giving it recurring revenue. The management is highly positive about the company’s future. The company has done well to bag multiple orders for it’s A&M and C&E segments. It has also acquired Gtropy which should help them expand well in the industrial IoT segment. Recent changes in government policies that worked in favor of the company give a positive roadmap to the company. Huge market opportunities in digital maps and geospatial data give huge growth potential to the company. Yet, current valuations offer no margin of safety for a value investor. Nonetheless, being a one-of-its-kind company in its niche industry, C E Infosystems is a company that should be under every investor’s watchlist.
Q3 FY22 Updates
Financial Results & Highlights
| Standalone Financials (In Crs) | ||||||||
| Q3FY22 | Q3FY21 | YoY % | Q2Y22 | QoQ % | 9MFY22 | 9MFY21 | YoY% | |
| Sales | 49 | 61 | -19.6% | 69 | -28.9% | 171 | 136 | 25.7% |
| PBT | 19 | 29 | -34.4% | 36 | -47.2% | 81 | 54 | 50% |
| PAT | 15 | 22 | -31.8% | 25 | -40% | 62 | 39 | 58.9% |
| Consolidated Financials (In Crs) | ||||||||
| Q3FY22 | Q3FY21 | YoY % | Q2FY22 | QoQ % | 9MFY22 | 9MFY21 | YoY% | |
| Sales | 52 | 61 | -14.7% | 70 | -25.7% | 174 | 136 | 27.9% |
| PBT | 21 | 29 | -27.5% | 37 | -43.2% | 84 | 54 | 55.5% |
| PAT | 18 | 21 | -14.2% | 25 | -28% | 65 | 40 | 62.5% |
Detailed Results:
- The company had a bad quarter with a -14.7% YoY fall in consolidated revenues and a -14.2% YoY fall in consolidated PAT.
- 9M revenues were up 27.9% YoY and PAT was up 62.5% YoY.
- Company has currently 500+ customers on SaaS, PaaS and MaaS platforms.
- The company recently listed last quarter and was subscribed 155 times, listing at a 53% premium.
- EBITDA margins on 9M basis expanded 44% from 32% the previous year. PAT margins expanded to 37% from 30% the previous year.
- The cash and cash equivalents of the company stand at 389.6 Cr.
- Sales of automotive OEMs were impacted due to semiconductor shortage which in-turn affected the company.
- In Market Segment, A&M revenue has grown 39.5% YoY for 9M. C&E revenue has grown 33.3% YoY for 9M.
- In Product Segment, revenue from Map & Data is up 25.1% YoY. Platform and IoT revenue grew 44.1% YoY for 9M.
- Ministry of Road Transport and Highways signed an MoU with MapMyIndia for integrating information of accident-prone road stretches and promoting MapMyIndia’s app, that gives real-time ADAS safety alerts to drivers during navigation, to users across India.
- QSR company’s adopted MapMyIndia for evaluating and selecting restaurant sites based on MapMyIndia’s geospatial data and analytics platform.
- The board gave approval for acquiring 9.99% stake in, Pupilmesh Pvt Ltd, a young, exciting automotive tech and augmented reality metaverse tech company, for a consideration of Rs. 49.95 lakhs.
- Government health agency selected MapMyIndia to power GIS (Geospatial Information Systems) and location based services for India’s health services.
Investor Conference Call Highlights
- The company signs long term mutually renewable contracts of three to five years with its customers to whom they provide platforms, APIs, etc. and charge fees per period.
- The management states that the addressable market for the company’s area is set to grow to $4.2 Billion for digital map services and $44 billion for navigation solutions and telematics by the year 2025.
- The management states that the company’s business model is such that it is best understood when numbers are compared YoY.
- The management expects quarterly revenues to get normalized and covered up as supply chains recover.
- Some of the B2B and B2B2C contracts that the company receives are milestone-based due to which revenues get recognized in certain timeframes resulting in lumpy revenues.
- The management is confident about the next quarter’s for the company.
- One of the leading European four-wheeler OEMs went live with MapMyIndia for in-vehicle navigation in Q3.
- Bajaj Finance super app went live with MapMyIndia to power their consumer facing mapping services and for location enabling their digital transformation across their enterprise operations.
- A publicly listed QSR company adopted MapMyIndia geospatial data analytic platform.
- The management states that 35% – 40% range for PAT margin is sustainable for coming years ahead.
- The ESOP charges for the quarter have been 92 lakhs.
- The company’s order book materializes at an average of 3.5 years.
- Geospatial guidelines released by the government give an advantage to the company by restricting foreign entities from doing a vehicle-based ground survey and terrestrial mobile mapping survey.
- The company has good direct business with the government, with the government to 20% of its business.
- The acquisition of stake in Pupilmesh Ltd was to ride the wave of Metaverse and AR.
- Pupilmesh is currently working on a helmet for two-wheeler riders to help in navigation and reduce accidents.
- The company’s addressable market for navigation solutions and telematics is $44 Billion by 2025.
- While the platforms already exist, the company will spend going forward into investments and improvements in technology.
- The management admits about the seasonality existing in the business with Q4 of the year having heavy revenues because of the terms of some contracts.
- MapMyIndia in comparison to google has better precision, accuracy and flexible pricings therefore making it more preferred to customers.
Analyst’s View
C E Infosystems (MapMyIndia) is a leading provider of advanced digital maps, geospatial maps and location-based IoT technologies. Its business is seasonal with heavy revenue being booked in the latter half of the year due to the nature of its revenue recognition and contracts. Its customers include the government and big companies giving it recurring revenue. The management is highly positive about the company’s future. Recent changes in government policies which worked in favour of the company give a positive roadmap to the company. Huge market opportunities in digital maps and geospatial data give huge growth potential to the company. Yet, current valuations offer no margin of safety for a value investor. Nonetheless, being a one-of-its-kind company in its niched industry, C E Infosystems is definitely a company that should be under every investors watchlist.
Disclaimer
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