MapMyIndia – The Map Company

Mapmyindia (MMI)
Results:

Source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/81eca280-8fc4-410e-a913-bbb05e738048.pdf
Concall Highlights:

1. First time Ad revenue monetisation of mappls through in-app advertising (client seems to be Cadbury) revenues is not trivial but remains small. Good potential if consumer usage of its mappls app increases.
2. Auto revenue from EV segment – in line with industry ICE and EV mix. Every EV is going with MMI solution. Client retention in auto is 100%.
3. Pricing difference – ICE vs. EV – EVs need more features from MMI so higher pricing in EVs.
4. 9MYTD – 31% YoY rev growth. Gunning for 35-40% revenue growth in FY24.
5. IOT led business grew over 100% to 27 crores. While map and data business grew 19% to 65 crores. IOT business margins 10% continue to improve (from 6% in Q124) due to SaaS revenues from the hardware sale.
6. Higher advertising cost of ~5 crore vs. 2 to 3 crores in previous quarters. Spends were successful based on increased rand awareness, consumer reach, downloads. Advertising shall be calibrated in future quarter by quarter.
7. In India more services like – Software, hardware, drone, map etc. Outside India – mostly Software only as it is world class so customers are asking, global map enhancement requirement based on customer discussions. So not everything offered outside India.
8. Drone:
   a. 3D mapping & risk monitoring for large logistics company warehouse/yard – it can be recurring revenue business.
   b. Drone is important pillar. MMI aims to become a serious leader in Drone.
   c. Monetising drone revenues – mix of selling drones, providing analytics, drone as part of overall deal (mapping).
9. Cash of 516 crores, why QIP: Plan is 10-year basis – international market expansion, drone business acceleration, activity in mappls consumer business. Over next 2-3 years to invest organically or inorganically.
10. Why excited for Q4FY24 – H2 is always better than H1 and Q4 is better than Q3.
11. Mobility opportunity 6000 crores – devices for devices for logistics and personal mobility.

Disclosure: invested and no transaction in last 30 days.