Route Mobile rallies 25% in three days on robust September quarter results

The stock bounced back 12 per cent today from its early morning low on the BSE after the company's consolidated net profit more-than-doubled to Rs 32.7 crore in Q2

Shares of recently listed Route Mobile surged 8 per cent to Rs 990, bouncing back 12 per cent from its early morning low of 884.5 per share, on the BSE on Thursday after the company's consolidated net profit more-than-doubled to Rs 32.7 crore in September quarter (Q2FY21) on the back of healthy income. The company had posted profit of Rs 13 crore in Q2FY20.

Stock of the internet software and services firm has rallied 25 per cent in the past three trading days and has surpassed its previous high of Rs 987.90, touched on September 25, 2020. The company had raised Rs 600 crore through initial public offering (IPO) by issuing shares at Rs 350 per share, and had made a stellar debut at the bourses last month.

Route Mobile's revenue from operations rose 77 per cent year-on-year (YoY) at Rs 349 crore as against Rs 197 crore in the-year ago quarter. Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin expanded 230 basis points to 13.3 per cent in Q2FY21 from 11.0 per cent in Q2FY20.

According to the management, Q2FY21 was another quarter of strong performance, backed by better operating leverage, despite the trying circumstances. The pandemic has accelerated CPaaS adoption amongst enterprises, and Route Mobile continues to enable its customers in their digital communication journey, it said.

As per Gartner estimates, by 2023, 90 per cent of global enterprises will leverage AP/ enabled CPaaS offerings to enhance their digital competitiveness, up from 20 per cent in 2020. The management said the company is optimally positioned to be at the forefront and drive this transformation.

At 09:50 am, the stock was trading 7 per cent higher at Rs 973 on the BSE, as against 0.40 per cent decline in the S&P BSE Sensex. The counter saw huge trading volumes with a combined 760,000 equity shares changing hands on the NSE and BSE till the time of writing of this report.