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Route Mobile gains after Q2 PAT climbs 74% YoY to Rs 74 cr

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Capital Market
Last Updated : Oct 24 2022 | 7:31 PM IST

Route Mobile advanced 2.28% to Rs 1,335.15 after the company's consolidated net profit jumped 74.53% to Rs 73.60 crore on 94.15% surge in revenue from operations to Rs 845.84 crore in Q2 FY23 over Q2 FY22.

Sequentially, net profit rose 6.04% while net sales increase 16.03% in Q2 FY23 over Q1 FY23.

Consolidated profit before tax stood at Rs 82.27 crore in Q2 FY23, registering a growth of 63.17% from Rs 50.42 crore recorded in the corresponding quarter previous year.

EBITDA improved to Rs 109.4 crore in Q2 FY23, recording a growth of 77.4% year on year and 27.1% quarter on quarter. EBITDA margin stood at 12.9% in Q2 FY23 from 11.8% in Q1 FY23 and 14.2% in Q2 FY22.

Meanwhile, the company's board has declared an interim dividend of Rs 3 per equity share for the financial year 2022-23. The record date for the same is 2 November 2022 and the dividend will be paid to the members on or before 19 November 2022.

Commenting on the results, Rajdipkumar Gupta, managing director & group chief executive officer, Route Mobile, said, I'm happy to announce that we have achieved yet another best quarterly revenue and operating profit to date. With this we mark six consecutive quarters of sequential revenue and adjusted PAT growth, demonstrating the stability of our business model. This is despite the geopolitical tensions, massive volatility across various currencies, and various other uncertainties that we are all grappling with.

He further added, The underlying strength in the business continues to be robust, and we are optimistic of inching close to a 60% YoY revenue growth in FY2023. This is fueled by our resilient platform, deep domain expertise, and a highly capable Route Mobile Team spread across 20 global locations. The steady growth is a result of winning quality deals worldwide, and the revenues underline our increased value proposition and improved market competitiveness.

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On 22 October 2022, Route Mobile announced that its wholly owned subsidiaries, Masivian S.A.S. and Estratec S.A.S. have incorporated a step-down subsidiary, Route Mobile Mexico S. de R.L. de C.V.

The company said that the objects of the incorporated subsidiary is to carry on business of providing SMS services and other allied Omni channel communication services. This new entity formation would further strengthen company's organic growth strategy in the North America, it added.

Masivian S.A.S. has subscribed 99.999% and Estratec S.A.S. has subscribed 0.001% of the shares of Route Mobile Mexico S. de R.L. de C.V. The total investment is MXN $1,00,000.

Route Mobile is a cloud communications platform service provider, catering to enterprises, over-the-top (OTT) players and mobile network operators (MNO). RML's portfolio comprises solutions in messaging, voice, email, SMS filtering, analytics and monetization.

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First Published: Oct 24 2022 | 7:13 PM IST

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