MapMyIndia - The Map Company

vikas_singh · April 24, 2023, 11:57am

Dear community members,

I’ve not been able to find the concall link for Q4’23 would be great if anyone can share it with me.

Now coming to what I’ve understood from the management interview and the investor presentation:
Value of Business w/o IoT

FY2022	FY’23	Growth
175.4	223	27%


85	117	37%
48.46%	52.40%

Assumption: Since the share of services in the IoT was higher in last FY, I’ve assumed the EBITDA number to be same as this year.

Takeaway: Company has always maintained that its core business has very high contribution margins. This is reflected in the EBITDA expansion. Operating leverage is evident in these numbers.

Value of IoT Business:

	FY2022	FY’23
Hardware	16.5	42.2
Service	8.1	16.8

EBITDA	1	1
EBITDA %	4.07%	1.69%

Takeaways:
Hardware business has grown on the low base. Still growth has been good.
Services have doubled, as per the management guidance/commentary the services growth will follow hardware sales with a lag.

On the business vertical side:

With revenue of 152crs vs 113crs A&M Business saw a growth of 34%. (this is higher than the industry growth). This was also impacted due to shortage of semiconductors.

C&E Business witnessed a growth of 48% with revenue going up from 87.4crs to 130crs in FY’23

A&M	C&E	A&M	C&E	A&M	C&E	A&M	C&E
Q1’2023	Q1’2023	Q2’2023	Q2’2023	Q3’2023	Q3’2023	Q4’2023	Q4’2023
33.2	31.9	38.9	37.3	40.1	27.5	39.5	32.9
65%	37%	47%	24%	45%	76%	2%	80%
Q1’2022	Q1’2022	Q2’2022	Q2’2022	Q3’2022	Q3’2022	Q4’2022	Q4’2022
20.1	23.3	26.4	30.2	27.7	15.6	38.7	18.3

If we look at the sales product wise then we can see that the platform business posted a growth of 45% and the maps business posted a growth of 34.5%

Map & Data	Platform & IoT	Map & Data	Platform & IoT	Map & Data	Platform & IoT	Map & Data	Platform & IoT
Q1’2023	Q1’2023	Q2’2023	Q2’2023	Q3’2023	Q3’2023	Q4’2023	Q4’2023
27.2	37.8	32.2	44.1	13.4	54.3	39	33.5
54%	47%	18%	50%	79%	51%	27%	28%
Q1’2022	Q1’2022	Q2’2022	Q2’2022	Q3’2022	Q3’2022	Q4’2022	Q4’2022
17.7	25.7	27.2	29.4	7.5	35.9	30.7	26.2

for the next year company is guiding for the following:

Growth will be higher than current year.
Services revenue from GTropy business will start contributing.
Look at inorganic route (Rolta)
Higher adoption of ADAS will aid the growth in A&E segment.
Company is focusing on Drones as the future of growth
Will look to acquire more customers for its Mappls app.
Looking to expand company’s hardware offerings. (Navigation assistant etc)
EBITDA Margin will remain in the 35-45% band.

My take here:

All the segments that the company is focusing are growing at a very healthy rate and will continue to do so in the coming future.
As the company adds more services revenue the profit growth will accelerate at rate > revenue growth.
Company is enhancing its offering by bolt on acquisitions
Drones can be a big play in the future

Lajja_Shah · April 26, 2023, 10:28am

MAPMYINDIA Q4 FY23 Result Update:

Open Order Book grew from 699 cr at the end of FY22 to 918 cr at the end of FY23. Out of which 700 cr is of Map led business. This has been possible due to increased use cases and cross-selling and up selling. Added 250+ customers (B2B & B2B2C). Customers who are subscription based or transaction based where contractual value is not available are not included in the open order book.
Planning to focus on the B2C Mappls maps and Mappls Gadgets and develop a full stack drone capabilities in organic and inorganic way. Drone solutions market is growing.
Open Order book to Revenue Conversion Ratio has been 3-5 years usually.
Expects to maintain 40% margins in the next year.

Lajja_Shah · June 23, 2023, 8:18am

MAPMYINDIA Management Interview:

Targeting 1000 crores revenue by FY27-28 which will completely be organic growth. Automotive segment expected to contribute the most.
IOT Business planning to grow by 10x. SAAS income plays an important role.
Plan to continue to be B2B. IOT devices need to be used for any case wherein there is some kind of movement of from the logistics point of view, tracking of the same needs to be done. Safety is also a use case for our tracking solutions.
Mappls App is gaining traction in the B2C segment.
EV Business: They require more technology and monitoring. Provide battery efficient navigation as they need to find navigations. Efficient route mobilization for battery saving. Find battery charging stations on route. Working with EV fleet owners.
Defense & Drone Space is something they are working on along with the government. Business mix is very huge.
Profitability: High Margins with EBITDA margins around 40%.

abhas_singh · July 1, 2023, 11:42am

Hi All, please help me understand why all this analytics can’t be bundled by google too? Obviously tech is not the problem. We reach our home pretty accurately even with google maps, Why can’t all this IOT thing be leveraged by them too considering its a pretty bug opportunity?

Mayank_Bajpai · July 29, 2023, 1:58pm

Can someone help me to understand what caused the working capital days to increase for C.E. Info Systems Ltd (MapmyIndia) in 2023?

vikas_singh · August 7, 2023, 12:57pm

My Take on the quarterly results:

	Q1’2024	Q1’2024 IoT	Q1’2024 Core Revenue	Q4’2023	Q4’2023 IoT	Q4’2023 Core Revenue
Total	89.40	22.80	66.60	72.50	14.80	57.70
Sale of Hardware	-	15.10	-	-	10.40	-
Sale of Map & Data Services	-	7.70	-	-	4.40	-
EBITDA	37.40	1.43	35.97	29.00	0.59	28.41
EBITDA Margin	41.83%	6.27%	54.05%	40.00%	3.99%	49.24%

I’m trying to slice and dice the numbers so that we can get a clear picture on IoT and Non-IoT (core business). Basically, beyond what is given in the presentation.

Core Business:

The Total Revenue has gone up 15% q-o-q in the core business from 57.7crs to 66.6crs.
EBITDA has gone up from 28.4crs to 35.97crs, EBITDA Margin has gone up from 49.24% to 54.01%.

IoT Business: This has to be broken in two parts Hardware & Services.

Hardware Business has grown from 10.4crs to 15.1crs growth of 45%
Service Business has grown from 4.4crs to 7.7crs growth of 75%.
Overall EBITDA Margins have grown from 3.99% to 6.27%

Notes:

C&E business has shown an impressive growth of 51%. C&E business now is bigger than the A&M business. This is a very good sign for the company as this ecosystem is likely to be much bigger than the A&M and is also expected to grow faster.
A&M business is also witnessing strong traction due to premiumisation push from the OEMs. This trend is likely to continue.
Looking at the EBITDA Margin expansion in the core business its evident that operating leverage is kicking in. Not sure how much headroom still exists on this front as the contribution margin is already very high.

BejgamNishanth · August 8, 2023, 8:58am

Pro article about co.

brahmadevan · August 13, 2023, 7:34am

It is due to regulation, foreign companies don’t have accurate and high resolution geospatial data. Only Indian companies are allowed to create/own such data. Foreign companies have to license these data from Indian entities. Refer below blog for more details.
Seeking wisdom in the Indian Stock Markets | SOIC

Lajja_Shah · August 29, 2023, 9:16am

-	Map-led business EBITDA margin was strong at 54.1%. IoT-led business EBITDA margin continued to expand quarterly and was at 6.3% in Q1FY24 versus 4.0% of Q4FY23, as SaaS income from IoT grew.
-	During Q1FY24, we outlined a 5-year vision of a growth roadmap for the company, and are putting in place the requisite foundations that will drive long-term success of the company. We are also delighted with the surge in interest and usage of our consumer-facing Mappls MapmyIndia app amongst users, which resulted in Mappls app becoming the top app in the app store recently. This bodes well for the B2C future of the company, in addition to the B2B and B2B2C where we have been traditionally strong.
-	Our strong Q1 YoY revenue growth was broad based with A&M (Automotive & Mobility Tech) up 24% and C&E (Consumer Tech & Enterprise Digital Transformation) up 51% on the market side. On the products side, Map & Data was up 41% and Platform & IoT was up 35%. We’re happy with the large number of customer go lives that occurred during Q1FY24 including many consumer technology companies and startups, corporates across industry sectors, automotive OEMs including EVs and 2- Wheelers, and government and logistics/mobility fleets. This bodes well for our future growth.
-	Cash continued to increase in this quarter as well.
-	IoT-led business is growing steadily, with expectations of expanding margin with the growth of SaaS income.
-	Automotive business is growing faster than industry volume growth, with increasing adoption of MapmyIndia solutions in EVs and ADAS vehicles.
-	International business is a focus area for future growth, with efforts to build international maps and expand presence in international markets.
-	Revenue growth projection of 40%+ for the year is on track.
-	Working with defense industry clients and seeing opportu

asrtheexpert · October 2, 2023, 11:50am

Map my India- Seems very interesting… Good thing is growth is visible mostly due to focus of Made in India theme plus this is proxy for Auto and defence sector. But the concern is very High PE That can-not be ignored and when i downloaded and used there software it is very basic. Frankly speaking this can’t stand in competition with google. So company can offer license service to corporate at very cheap rate with back-end support but on direct to consumer basis they don’t stand a chance.
Overall one of a kind company with low float, low market cap, growth prospect present. Can concentrate for a period of a year to see how thing evolves.
Any competition with better service quality can disrupt it .

abhishekaddy · October 2, 2023, 4:18pm

From what i understand, dont think they are focusing too much on B2C. They are focused on B2B and B2G play. Nowadays, any connected car you see comes with MapMyIndia. Similar the company where I work is in the ecommerce space and we have a contract with MapmyIndia

asrtheexpert · October 2, 2023, 5:32pm

Yes, you got it right.
Basically what i feel corporates like car companies, e-commerce companies need licensed and customized product to use officially.
For that google will definately charge premium so the cheaper version is this.
But definately they need to improve.

Kapur21 · October 2, 2023, 6:20pm

My 2 cents - Suggest you use Mappls app before passing off judgements such as ‘it’s basic’ and can’t stand competition.

Also suggest reading anti-trust ruling re: Google.

abhishekaddy · October 3, 2023, 3:38am

On a lighter note, MapMyIndia shows if you need to go on the flyover or below it, unlike Google Maps

Parag_Ingle · October 22, 2023, 2:03pm

https://www.bloomberg.com/news/articles/2023-10-16/maymyindia-apple-s-india-map-provider-doubles-as-it-rivals-google-s-product

I just found a fantastic article on the company.

Thought of Sharing.

Disclosure : Invested

Parag_Ingle · October 22, 2023, 2:22pm

I was able to find the article for everyone and the same is copy pasted below:

A Mark Mobius-backed company’s stock has doubled in about six months as its mapping service grows more popular in India, pitting it against Alphabet Inc.’s Google Maps. Market watchers are split on whether the rally will continue.

Shares of MapmyIndia, formally known as [CE Info Systems Ltd], have risen about 104% from the end of March, adding around $675 million in market value on demand for its consumer-facing app [Mappls]. Some analysts and investors are betting on the company’s domestic growth opportunity, while others view its price tag as a barrier.

“The valuations look really stretched now,” said Piyush Pandey, technology analyst at Yes Securities India Ltd. “I expect the stock to go into a consolidation phase.”

MapmyIndia was founded by the husband-and-wife duo Rakesh and Rashmi Verma, who decided to create digital maps of India long before Google revolutionized web cartography. The Vermas traversed India’s mega-cities by foot, painstakingly charting streets and landmarks. Their son Rohan Verma, a graduate in electrical engineering from Stanford, is now the firm’s chief executive officer.

Read: Husband-and-Wife Team Worth $586 Million After Map Startup’s IPO

The majority of its revenue comes from providing mapping services to other businesses such as Apple Inc., BMW AG and Amazon.com Inc.

Mobius flagged the stock as one of his top picks in India in a June interview to Bloomberg, saying the company will “benefit from digitization of the country.” His firm Mobius Capital Partners LLP owns a 0.74% stake in the company, according to data compiled by Bloomberg. It initially invested in January and boosted its holding over the following four months.

After their surge, the shares trade about 65 times its estimated earnings over the next 12 months compared to around 21 times for the [S&P BSE 500 Index], according to Bloomberg-compiled data. The stock has pulled back 8.5% from an Oct. 6 record high.

Still, Shobit Singhal, lead internet stocks analyst at Anand Rathi Institutional Broking Ltd., remains optimistic. He expects the company to grow its sales by 35%-40% every year for at least the next 3-5 years.

“The business has no listed peers in such a big domestic market,” he said. “Such growth combined with a management with strong pedigree deserves a premium valuation,” he said.

The company is investing in in-house drone technologies and is also looking to acquire drone businesses, CEO Rohan Verma said in a phone interview. MapmyIndia is also expanding internationally on demand from their clients, most of which are multinationals.

“We want to be a full-stack drones provider,” he said. “We have the technological know-how of navigation, now its time to widen its use cases.”

— With assistance by Abhishek Vishnoi

soylentgreen · October 26, 2023, 2:07am

If this is the case, they ought to be good at B2C as well. Their mobile app is riddled with outdated data an unintuitive & clunky UI. I agree that it has stuff that Google Maps doesn’t. Having said that, I like their value proposition (there’s no denying their strengths in other segments and verticals) and leadership. This is an interesting play.

Mayank_Bajpai · October 31, 2023, 3:32pm

Can someone enlighten me as to why Working Capital Days are 335 and what is the impact?

cannygui · October 31, 2023, 3:56pm

ankit_george · November 1, 2023, 6:37am

Figured I would add some of my notes from the Q2FY2024 earnings call here…

Financial Snapshot
June 2023 – Held an investor meet. 150 members of the investor community attended. Highlighted the ₹1000 cr revenue vision (FY27/28).

C&CE up from ₹431 cr to ₹518 cr y-o-y.

EBITDA and PBT margin improvements are evident.

The IoT-led business has seen decent EBITDA margin growth (4.0% to 8.2% from Q4FY2023 to Q2FY2024). Both SaaS revenue, and better pricing for devices has helped here.

Map-led businesses have also seen EBITDA margins grow (50.2% to 56.4% from Q4FY2023 to Q2FY2024).

A&M Highlights
• Adoption increasing for spectrum of NCASE solutions with go-lives for multiple 2-wheeler EV/ICE OEM customer for Navigation Software and Wins including a 4-wheeler OEM customer for IoT supply, OEM customer for Shared Mobility Software platform and CV (Bus) OEM customer for Connected Vehicle Software platform

• Mobility wins include expansion of business with large State Road Transport Corporation business for public transit IoT-based monitoring and consumer-facing app solution, as well as extremely prestigious deployment for the G20 event for VIP cavalcade movement planning & monitoring.

C&E Highlights
• Multiple go-lives and wins across variety of new-age tech & traditional corporate customers for multiple solutions, including expansion of business with existing Payments & Fin-Tech conglomerate customer for territory/beat planning of large field force using geospatial analytics & API platform.

• Large E-commerce Company transporters and Multiple Large Cement companies signed up for IoT-led logistics optimisation, and Large Steel company signed up for Video Telematics for Mine Vehicles.

• Achieved Defence business and revenue based on wins and execution of multiple Defence customer projects.

Other Highlights
Besides our existing, core B2B and B2B2C business, we’re very happy that our B2C Mappls App has been receiving significant traction recently, and now has 11 Mn+ lifetime downloads, including 10 Mn+ on Android and 1 Mn+ on iOS.”

In terms of map and location data, platform, software, drone technology and the like, we are the only full-stack and integrated mapping solutions company in the country. We have a huge moat, network effects and technology reliability working in our favour, not to mention robust deep tech abilities to provide exactly what our customers need. There have been hundreds of companies who have tried to get into mapping in some way or another. But here we are.

In response to Ola’s mapping efforts, management highlighted, “Even Uber tried to have its own maps, but now is clear on its focus, and relies on external mapping partners.”

Keen to cover the entire span of drone opportunities, both organically and inorganically.

B2C apps can be a channel to sell devices and services. Kogo can be a great travel commerce play, not just a maps app. Then there’s advertising opportunities here as well.

Disclosure: Cost basis of ₹1137, entered early in CY2023. Long term hold for me.