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.
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