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.
Q2 FY23 Updates
Financial Results & Highlights
Detailed Results:
- Consolidated Total Revenue & PAT for H1 grew by 41% & 8% respectively..
- EBITDA Margins stood at 40.1% in Q2FY23. Ebitda margins for H1 were 42.8%.
- Cash and Cash Equivalents stand at Rs. 430.6 cr.
- Product Line growth – Map and Data grew 32% | Platform & IoT grew 49%
- Product Line Revenue Breakup – Map and Data: 59.4 Cr | Platform & IoT: 81.9 Cr
- A&M Market grew 55% YoY and C&E Market segment grew 29% YoY
- Business Update – New additions
- • New large 4-wheeler EV OEM signed up
- • Market-leading vehicles from leading brands continue to go live embedded with our solutions
- Multiple large cement and dairy companies signed up for using IoT & Logistics SaaS solutions
- • Multiple BFSI/fin-tech companies for Workforce management & automation
- • E-commerce, FMCG and fin-tech companies for Geospatial Analytics
- • Health-tech, fin-tech, retail/FMCG & voice-assistant app developers for APIs
Investor Conference Call Highlights
- The company acquired a 76% stake in Gtropy, An IOT-based company which will help the company to tap a vast market of 20 Crs plus vehicles in an accelerated manner.
- EBIDTA of core biz remained at 50%, but the acquisition led to EBIDTA declining to 42.8% on a consolidated basis.
- Other reasons for margin declines include higher marketing expenses & investments in product developments like Realview 360-degree and Metaverse 3D maps.
- The company also invested INR 10 crores for a 26% stake in a company Kogo, a gamified social travel commerce platform, which will open up new markets and new use cases.
- PAT margins were negatively affected due to lower other income & higher effective tax rates.
- The company in coming years targets EBIDTA margins of not less than 40%.
- The company A&M revenues excluding Gtropy grew by around 40% which is in line with the PV industry’s growth.
- API’s contribution to C&E stood at around 50%.
- The 3 components of Gtropy biz are pure device, pure Saas & device-led SAAS.
- The management is targeting a strategy of providing devices to its B2B customers like cement & dairy cos at lower margins & then generating recurring high-margin revenues through Saas offering.
- The management explains that Gtropy gets the benefit of the muscle power of Mapmyindia to extend its offering widely & the company gets the benefit of Gtropy by neutralizing the shortfall in its IoT revenues.
- The company’s end objective of working with Govt. is to be part of population-scale platforms since, the government has big plans for digital transformation, Geospatial and IoT, and maps, the areas where the company can play a critical role.
- The company’s tie-ups with Govt. include the ULIP project, which is the Unified Logistics Interface Platform government announced with National Logistics Policy & partnership with U.P. police.
- The company is not seeing any slowdown in E-commerce & Fintech space in the C&E segment.
- The management states that the majority of EV two-wheelers are looking at its NCASE product.
- The management explains that the auto OEM business is mostly a volume-based business while the fixed price normally comes in the C&E side and is use case driven.
- The Gtropy’s revenues doubled QoQ to Rs.24 Crs out of which Rs.8 Crs was attributable to a Saas offering made to Mapmyindia.
- The management believes that the company is unique Vs its global peers due to its highly technology-oriented and cost-efficient strategy.
- The company’s framework while evaluating an acquisition is whether it will get us more customers they will enhance the product portfolio or that it can upsell to its existing customers.
- The company plans to monetize its KOGO acquisition by continuing to sell to its OEM customers as add-on solutions & direct-to-consumers monetization opportunities.
- The management on being asked about a potential advertising-led business model commented “t I don’t want to preclude anything for the long-term future. What we are strong procurement of, is user privacy. We don’t believe in this ad user targeting and mining, that’s the Google route, which we are not a fan of.”
Analyst’s View
MapMyIndia has been executing well and has a long growth runway ahead of it in geospatial and digital maps market. With more and more IoT devices coming into play coupled with its pay-per-use model means that a large part of its growth is yet to come. Gtropy acquisition is likely to provide it a good headstart in the owned and logistic fleet device market. Even on the Government side, while the revenue share last year was 5%, management expects growth in this segment as well. Compared to other players its one-stop-shop platform also attracts enterprises because in this case they only have to deal with one instead of several. A cash balance of nearly Rs. 400cr provides it with enough M&A dry powder to scout and grab any suitable opportunity.Given its strong growth prospects, it remains an interesting stock to keep track of.
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.
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