C.E. Info Systems Limited — Investor Meet, 13-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

1. **Financial Performance:** In Q2 FY2025, C.E. Info Systems, also known as MapmyIndia, generated revenue from operations of ₹104 crore, reflecting a 14% year-on-year growth, while the first half of FY2025 reported revenue of ₹205 crore, up from ₹181 crore in H1 FY2024. EBITDA for Q2 FY2025 stood at ₹37.5 crore, yielding a margin of 36.1%, down from 44.5% in Q2 FY2024, attributed mainly to ongoing investments in the consumer segment. Profit after tax increased to ₹66 crore compared to ₹65 crore for H1 FY2024. The company's IoT business displayed improved EBITDA margins, rising from 7% to 14%.

2. **Future Outlook and Growth Drivers:** Management emphasized its commitment to long-term goals, with expectations of achieving its FY2027-28 revenue target of ₹1,000 crore. Noteworthy developments include launching a joint venture with Hyundai Autoever in Indonesia, expected to generate significant revenue from map solutions for automotive OEMs by FY2026. The consumer app, Mappls, continues gaining traction, with downloads soaring from 10 million to 25 million in just six months.

3. **Order Book and Operational Updates:** The company reported a healthy order book, with significant wins in the Automotive & Mobility Tech sector, including contracts with major vehicle manufacturers. New contracts commenced, enhancing revenue predictability moving forward.

4. **Analyst Q&A Insights (Detailed):**

- **Revenue and Profitability:** Analysts sought clarity on revenue projections. Management assured that while Q2 reflects variability, the longer-term view remains positive, supported by the robust order book.

- **Market Position and Competitive Landscape:** Management addressed competitive pressures, confirming no direct impact from players like Google on their C&E business.

- **Operational Challenges or Risks:** Analysts inquired about cost pressures. Management acknowledged the impact of investment in growth plans but remains confident in long-term profitability.

- **Capex and Capital Allocation:** Management highlighted ongoing investments in consumer segments, IoT, and drone services, framing these as essential for future growth despite short-term EBITDA pressures.

- **Strategic Priorities and Long-Term Vision:** The company’s vision is focused on technological advancement and market expansion, particularly through international joint ventures.

5. **Market or Regulatory Updates:** Significant emphasis was placed on the joint venture with Hyundai, anticipated to catalyze revenue growth and improve operational synergies in new markets.

6. **Strategic Focus Areas:** The conference highlighted the company's aggressive growth strategy, underpinned by investment in innovative technologies and expanding the consumer base through the Mappls App.

7. **Investor Insight:** With solid financial metrics and a strong growth trajectory, MapmyIndia appears well-positioned for sustained expansion. While short-term volatility is expected, particularly in segment-specific revenues, the long-term outlook suggests potential for considerable appreciation, warranting attention for a ‘buy’ position among retail investors.