Q1 2025 Route Mobile Ltd Earnings Call Transcript
Key Points
- Route Mobile Ltd (BOM:543228) demonstrated an industry-leading revenue growth of 14% year-on-year and 8.5% sequentially.
- The acquisition by Proximus Opal of an 83.1% stake in Route Mobile is expected to help the company enter mature markets like the USA and Europe, expand its product portfolio, and unlock synergies with TeleSign.
- Route Mobile's largest firewall deal with Vodafone Idea went live in April 2024, resolving initial issues and contributing to revenue.
- New product revenue showed strong momentum, registering 94% year-on-year growth and 16% sequential growth.
- The company expects revenue growth in the 18% to 22% range for FY25, with an EBITDA margin of approximately 13%.
- Employee benefit expenses increased by around 27% sequentially due to annual increments and one-off incentives, impacting operating overheads.
- There was a non-operating non-cash ForEx translation loss of INR119 million and a one-time cost of INR8.6 million for expert opinions on transfer pricing and mandatory tender offer.
- Average realization per billable transaction declined to INR0.30 from INR0.33 in Q1 FY24 due to increased domestic volumes in India.
- Profit after tax improved by only 1.5% year-on-year, with PAT margin declining from 9.5% in Q1 FY24 to 8.4% in Q1 FY25 due to an increased effective tax rate.
- The company faces challenges in ramping up related-party transactions and synergies, which may take time to materialize fully.
Good evening, ladies and gentlemen. I'm Sagar, moderator for this conference. Welcome to the conference call of Route Mobile Limited, arranged by Concept Investor Relations, to discuss its Q1 and FY25 results. We have with us today, Mr. Rajdip Kumar Gupta, Managing Director and Group CEO; Mr. Gautam Badalia, Group Chief Strategy Officer and Chief Investor Relations Officer; and Mr. Suresh Jankar, Chief Financial Officer. (Operator Instructions)
Before we begin, I would like to remind you that some of the statements made in today's earnings call may be forward-looking in nature and may involve risks and certain uncertainties. Kindly refer to the slide number 2 of the presentation of the detailed disclaimer. Please note that this conference is being recorded.
I now hand the conference over to Mr. Rajdip Kumar Gupta. Thank you, and over to you, sir.
Thanks, Sagar. Good evening, everyone. Wishing all of you good health and
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