Route Mobile Q1 FY22 Conference Call Highlights

Financials: Route Mobile Stock

• Closed Q1 FY2022 with revenue from operations of Rs 3,775mn compared to Rs 3,624mn in Q4 FY2021 and Rs 3,096mn in Q1 FY2021

• Y-o-Y growth of 21.9% and sequential growth of 4.2% in revenue

• Recorded Gross Profit of Rs 769mn in Q1 FY2022 compared to Rs 796mn in Q4 FY2021 and Rs 602mn in Q1 FY2021

• Y-o-Y growth of 27.7% and sequential degrowth of 3.4% in Gross Profit

• Gross Profit margin of 20.4%, 22.0% and 19.4% in Q7 FY2022, Q4 FY2027 and Q7 FY2027 respectively

• Recorded EBITDA of Rs 491mn in Q1 FY2022 compared to Rs 515mn in Q4 FY2021 and Rs 397mn in Q1 FY2021

• Y-o-Y growth of 23.6% and sequential degrowth of 4.6% in EBITDA

• EBITDA margin of 13.0%, 14.2% and 12.8% in Q1 FY2022, Q4 FY2021 and Q1 FY2021 respectively

• Recorded Profit After Tax of Rs 343mn in Q1 FY2022 compared to Rs 355mn in Q4 FY2021 and Rs 269mn in Q1 FY2021

• Y-o-Y growth of 27.4% and sequential degrowth of 3.2% in Profit After Tax

Other Highlights: Route Mobile Fundamental Analysis

• Route Mobile stock analysis will invest 12 Million USD in the next 3 years in email communication platform

• RCS Business Messaging (RBM), is a communication protocol between telecom operators, OEMs and messaging partners for A2P rich messaging. It upgrades an SMS with rich media for enterprises to send videos, audios, images, gifs, map locations, and create engaging & rewarding campaigns. It is gaining significant ground in the enterprise segment

• RML’s acquisition of Sendclean in the previous quarter will help the company in its email business. Also, 20 to 25% of revenues will come from this segment for the company.

• Planning to launch a Rapid programme for the developer community across the globe in Q2. Due to covid it was delayed. This will give access to RML’s API’s to the developers. They can build their solutions on top of it. A hackathon type of contest will be held.

• The company has come out of its Phonon acquisition because of the client-side extending timelines.

• Company is planning to add 100 employees in FY22.

• The message volumes in the Indian side of business were affected because of an alleged data breach. After the independent enquiry, no data breach was found and the traffic has resumed back to normal in this quarter.

• Going forward the pricing from email business (indicative) will be between 12 paise to 32 paise per message and gross margins will be around 35%.

• Call centre business will see a constant revenue around 7 Cr Year on Year.

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