ROUTE MOBILE LIMITED — Investor Meet, 04-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Route Mobile reported a remarkable performance with revenue reaching ₹34,006 Cr for the nine months ending December 31, 2024, reflecting a 13.1% year-over-year increase. The company sustained a gross profit margin of 21.1% and achieved an EBITDA growth of over 15%, resulting in an adjusted EBITDA margin of 12.33% for the nine months. Despite a decrease in other income due to foreign exchange losses, the company generated a robust CFO to EBITDA conversion rate of 102%, underscoring strong cash flow generation.

**Future Outlook and Growth Drivers:** Management is optimistic about leveraging synergies from the newly formed Proximus Global, which includes Route Mobile, BICS, and Telesign, to capitalize on broader market opportunities. They anticipate growth from diversified service offerings and international market expansion. The management aims for a compound annual growth rate (CAGR) of 15% over the next three years, despite current industry headwinds.

**Order Book and Operational Updates:** The company reported processing 116.6 billion billable transactions, with strong contributions from new products, which saw revenue growth of 150%. Route Mobile is actively working on unique use cases and deployment of solutions like metro ticketing in Indonesia, enhancing its client portfolio.

**Analyst Q&A Insights:** Analysts raised concerns over revenue growth trends and competitive pricing pressures. Management clarified that while domestic volumes faced challenges, international growth remained robust. They expressed confidence in maintaining these dynamics despite market fluctuations. Questions about capital allocation and pricing strategies highlighted the company’s focus on managing costs and improving margins, with expectations of positively impacting future profitability.

**Market or Regulatory Updates:** The ongoing shift in the CPaaS industry towards more secure and efficient communication channels, including a focus on RCS and WhatsApp services, positions Route Mobile favorably for market growth.

**Strategic Focus Areas:** Key strategic themes include expanding the product portfolio through innovative solutions and enhancing customer engagement capabilities while improving operational efficiencies across the board.

**Investor Insight:** With strong financial health, a growing product suite, and a robust growth strategy driven by synergies within Proximus Global, Route Mobile appears well-positioned for future growth, leaning towards a favorable investment position. Keep an eye on the evolving market dynamics and the company’s adaptability in facing industry challenges.