Affle 3i Limited — Investor Meet, 18-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Affle (India) Limited reported a consolidated revenue of Rs. 5,429 million for Q2 FY2025, reflecting a robust year-on-year growth of 25.9% and a quarter-on-quarter increase of 4.5%. EBITDA rose to Rs. 1,133 million, marking a growth of 29.9% y-o-y, with a margin improvement to 20.9%. PAT for the quarter was Rs. 920 million, up 37.7% y-o-y. CPCU revenue, which grew by 35.2% y-o-y to Rs. 5,416 million, helped consolidate the financial strength, supported by an increase in CPCU conversions to 95 million at a CPCU rate of Rs. 57.1.

**Future Outlook and Growth Drivers:** Management targets over 20% revenue growth for FY2025, with a focus on margin expansion and profitability. They expect strong performances in H2 driven by festive demand and ongoing technological advancements, particularly in GenAI capabilities which enhance product offerings.

**Order Book and Operational Updates:** Affle continues to expand its digital offerings, capitalizing on increased global digital ad spending. The company plans to persist with its investments in its ConvergeAI Supply Cloud to maintain a competitive edge.

**Analyst Q&A Insights (Detailed):** Analysts asked for clarity on revenue generation across various markets. Management emphasized sustained growth in India and emerging markets, with expectations for ongoing strong performance in Q3 and Q4. They noted challenges faced by competitors in regulatory environments, indicating potential advantages for non-walled garden platforms like Affle.

**Market or Regulatory Updates:** Regulatory shifts favoring non-walled garden platforms are seen as beneficial for Affle. The company remains optimistic about global market opportunities, including increased focus on developed markets.

**Strategic Focus Areas:** The discussion highlighted a commitment to enhancing product innovation and maintaining cost efficiency while mitigating risks associated with supply chain issues. The management's tone was confident about achieving long-term goals.

**Investor Insight:** Affle's strong financial performance and strategic direction suggest a favorable outlook, aligning with a ‘buy’ viewpoint given the growth prospects and ongoing investment in technology. However, one should monitor external regulatory impacts and competition dynamics in emerging markets.