CE Info Systems Ltd Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Shobit Singhal - Anand Rathi Shares And Stock Brokers Ltd. - Analyst : Yeah, thank you, sir. I have two questions from my side. So in Q2 earnings call, so we have given our revenue growth guidance of around 40% for FY24, right now If I see nine months, we have done around 31% kind of year-on-year growth. So are we still maintaining this revenue growth guidance?

Question: Shobit Singhal - Anand Rathi Shares And Stock Brokers Ltd. - Analyst : Okay. And also you had spoken about the consumer advertisement income. So how do you see the revenue contribution from it going forward, though right now it's on initial stage?

Question: Shobit Singhal - Anand Rathi Shares And Stock Brokers Ltd. - Analyst : Thank you sir, so that's all from my side.

Question: Vimal Gohil - Alchemy Capital Management Pvt. Ltd. - Analyst : Yeah, thank you for the opportunity. Sir, my first question is on your marketing and business promotion expenses. You've typically done about INR20 crores to INR25 crores every quarter since we started reporting numbers this quarter, it was about INR50 crores. So just wanted to get a sense on what should what should be the outlook there, given that you are going aggressive for advertising Mappls. The second question is you spoke about the monetization of the same. So if you could just is there a possibility that you could quantify what was the REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 16, 2024 / 12:30PM, CEIF.NS - Q3 2024 CE Info Systems Ltd Earnings Call revenue from sales of gadgets and ad sales from Mappls, because of Mappls maybe for nine months or quarter or whatever the whatever detail you would like to share on that front? Thank you so much.

Question: Vimal Gohil - Alchemy Capital Management Pvt. Ltd. - Analyst : Yeah, I'm sorry INR5.3 crores, not INR50 crores, my bad.

Question: Vimal Gohil - Alchemy Capital Management Pvt. Ltd. - Analyst : So just to clarify on the other a follow-up on the one hand, when you say it's been very cost effective, what were the benchmark that you're using when you say cost-effective, the revenue that you are getting or what exactly are you looking for?

Question: Vimal Gohil - Alchemy Capital Management Pvt. Ltd. - Analyst : All right. Thank you so much on going back to the queue.

Question: Anmol Garg - DAM Capital Advisors Limited - Analyst : Yeah hi, thanks for the opportunity, I had three questions. Firstly, if you can highlight the reason for increasing the cloud hosting charges. So now that R&D has come to 4 odd crores and how should we look at it going forward?

Question: Anmol Garg - DAM Capital Advisors Limited - Analyst : Yeah, that's right.

Question: Anmol Garg - DAM Capital Advisors Limited - Analyst : Sure, I'm sure, also one on the, if you can indicate how much of our AUTO revenue is coming now from the EV segment? Because we talked about a couple of wins in this quarter and last quarter as well. And if you can also highlight if there is any price difference between EVs and passenger vehicles for our maps?

Question: Anmol Garg - DAM Capital Advisors Limited - Analyst : Sure and also, previously you highlighted some parts on the international expansion. And so are you planning to build more comprehensive maps for our neighboring countries, which might require more on-ground people to collect, addresses and data or are we planning to take our solutions based on the current data that we already have? So just wanted to get a view on how we are trying to expand internationally/ REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 16, 2024 / 12:30PM, CEIF.NS - Q3 2024 CE Info Systems Ltd Earnings Call

Question: Anmol Garg - DAM Capital Advisors Limited - Analyst : Sure, and I see if you can indicate that, or should we assume that advertisement cost would be in the INR5 crore sort of quarterly range, or I think that it would be it can again come down in the next few quarters.

Question: Anmol Garg - DAM Capital Advisors Limited - Analyst : Sure, thanks Rohan, I'll jump back in the queue.

Question: Nitin Sharma - MCPro Research - Analyst : Yeah, hi, congrats on good set of numbers. Two questions. First of all, I would want to understand with the increase in the engagement with the government, how should we see the revenue contribution from the government to be overall top line for, say next one to two years?

Question: Nitin Sharma - MCPro Research - Analyst : So is it fair to assume that we will continue to remain 5% to 10% kind of range or it has increased the sales rate?

Question: Nitin Sharma - MCPro Research - Analyst : Understood, secondly, the drone 3D mapping and risk monitoring visits that you won with a large logistics company. Can you please help us understand how is it, is it a one-time or the [same]

Question: Nitin Sharma - MCPro Research - Analyst : Understood. Thank you.

Question: Moez Chandani - AMBIT Capital Private Limited - Analyst : Hello.

Question: Moez Chandani - AMBIT Capital Private Limited - Analyst : Sure, a good evening and thank you for taking my questions. So my first question was on the Kogo in growth. Can you just give a sense of, how you looking to monetize these products and also what a profitability would be profits or how soon you expect them to become profitable?

Question: Moez Chandani - AMBIT Capital Private Limited - Analyst : Sure. Okay. Thank you for that. And also on your consumer mapping business, you mentioned that downloads have been particularly strong, but is there any data point in terms of MAUs and DAUs that you can share with us for the Mappls app?

Question: Moez Chandani - AMBIT Capital Private Limited - Analyst : All right. Thank you.

Question: Majid Ahamed - Smart Sync Services - Analyst : I'm Ahamed. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 16, 2024 / 12:30PM, CEIF.NS - Q3 2024 CE Info Systems Ltd Earnings Call

Question: Majid Ahamed - Smart Sync Services - Analyst : Am I audible now?

Question: Majid Ahamed - Smart Sync Services - Analyst : Yeah, thanks for the opportunity and very good numbers. So my first question is, how far is the client retention in their automotive business. And I want to need a breakup of client retention as well as new customers. A new clientele is coming in automotive business?

Question: Majid Ahamed - Smart Sync Services - Analyst : And secondly, the question that I have is certainly the way you experience the Mapple, I think going forward, when I saw your some of your review, some of the locations and everything I saw, I think how far you're going to improve the experience when there's so many of the locations simultaneously, if you just want feedback, how often you improve platforms going forward, so that becomes more robust and it increases the network effects for the customers?

Question: Majid Ahamed - Smart Sync Services - Analyst : The last and final question, I just wanted to get more information about the use cases on NBFCs and the food delivery business. And hopefully, I wanted to me just want even more detail on that.

Question: Majid Ahamed - Smart Sync Services - Analyst : Thank you. All the very best.

Question: Ridhima Goyal - Acquaint Bee Ventures - Analyst : Hi. Thank you so much for giving me the opportunity. I have two questions. One is I just wanted to know of what is the repeat business from the automotive and mobility segment. The customers like, for example, like MapmyIndia, as you are, you know, map services, then how frequent they come to you when you get the map on the vehicle?

Question: Ridhima Goyal - Acquaint Bee Ventures - Analyst : So we do contract with them for particular model and for every new model you have to do a new contract is it right?

Question: Ridhima Goyal - Acquaint Bee Ventures - Analyst : Understood. I just wanted to know like what is our mix between fixed and variable income in terms of both the segments, automotive and C&E part, like how much is coming from the fixed part of revenue and how much is coming from the variable like for the vehicle, for app or for delivery kind of thing?

Question: Ridhima Goyal - Acquaint Bee Ventures - Analyst : Is it like at the end of five year period and the customers will give you [annuity] for one particular vehicle only.

Question: Ridhima Goyal - Acquaint Bee Ventures - Analyst : Okay, understood. And my second question is related to your drone business. Actually I'm not getting at like how are we monetizing our drone business revenue? Is it like we are selling drones to the customer, or we have our own drone, and the others are doing or, you know, maybe or any kind of analytics that we are selling, how does it working? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 16, 2024 / 12:30PM, CEIF.NS - Q3 2024 CE Info Systems Ltd Earnings Call

Question: Ridhima Goyal - Acquaint Bee Ventures - Analyst : And how much is the--

Question: Sanjay Satpathy - Anpathek - Analyst : Thanks a lot for the opportunity. Can you hear me?

Question: Sanjay Satpathy - Anpathek - Analyst : So my question is that the company balance sheet has so much cash and still the company looking at almost INR500 crores of equity capital fundraising time is to hear your thoughts on that in terms of what are the kind of deployment that you are looking at it on the CapEx or anything else?

Question: Sanjay Satpathy - Anpathek - Analyst : Understood. Sir, my second question is that in your opening remarks as well as press release, you had mentioned that you are very excited about Q4 and in fact, you had mentioned that at the end of previous quarter as well. Is there anything more to it in terms of specifics that you can share with us, or it is just that and it is just a subjective thing documents?

Question: Sanjay Satpathy - Anpathek - Analyst : But sir, nothing extraordinary or different from that the historical trends.

Question: Sanjay Satpathy - Anpathek - Analyst : Understood. Thanks a lot sir.

Question: Amit Thawani - Clear Blue Capital Advisors LLP - Analyst : Hi, thank you for taking my question. I was just reading the road map to INR2000 crores, and I was looking at the biggest contributors. I believe you know is the mobility segment. Can you just you know, quantified the opportunity at INR6,000 crores, so I also quantify the addressable market at [34 crore devices] with the industry adoption of three crore devices. Can you tell me what kind of devices are we talking about?

Question: Amit Thawani - Clear Blue Capital Advisors LLP - Analyst : So is it fair to say that logistics will be the primary customer for your logistics companies kind--

Question: Amit Thawani - Clear Blue Capital Advisors LLP - Analyst : And is this more so is this mostly data generation based business or is this--

Question: Amit Thawani - Clear Blue Capital Advisors LLP - Analyst : Okay. SaaS subscriptions, got it, thank you sir.

Question: Divyesh Mehta - 3P Investment Managers - Analyst : Hello sir, am I audible?

Question: Divyesh Mehta - 3P Investment Managers - Analyst : So my question is largely on IoT-led. If we look at the sale of hardware revenue for the last three quarters, it has been somewhat flattish. Is there any change in this? Is there any change in the sales strategy because while we've improved our EBITDA margins, though the hardware revenue should also scale up. So that's incremental, obviously new flows. And that's the first question. Second question, have you looked at areas AIS 140 devices, which are there incremental opportunity for us to be already covered, is there are regulations regarding that?

Question: Divyesh Mehta - 3P Investment Managers - Analyst : Any commercial vehicle?

Question: Divyesh Mehta - 3P Investment Managers - Analyst : But sir like this sale of hardware revenue should also gradually increase, right? Because it has been at the same run rate that also if you can share like AIS 140, what would be the mix of the devices you have sold? How much? Is it a meaningful share or not? What is the opportunity here?

Question: Sarang Sanil - RW Investment Advisors LLP - Analyst : Hello, good evening. First of all, Happy New Year to the entire team, so my first question is the additional marketing expense that we incurred this quarter was this up absorbed in Map-led segment alone and nothing on the IoT side.

Question: Sarang Sanil - RW Investment Advisors LLP - Analyst : Because you report EBITDA margin separately.

Question: Sarang Sanil - RW Investment Advisors LLP - Analyst : Second question is, could you please elaborate on the revenue model, and Mappls, Kobo assistant that we are now involved with the Auto OEMs?

Question: Sarang Sanil - RW Investment Advisors LLP - Analyst : So the Mappls, Kobo assistance integration you have done to the existing OEMs NCASE suite?

Question: Sarang Sanil - RW Investment Advisors LLP - Analyst : I'm not sure if you're allowed, but we would love to know the status of the planning QIP?

Question: Sarang Sanil - RW Investment Advisors LLP - Analyst : The plan QIP.

Question: Sarang Sanil - RW Investment Advisors LLP - Analyst : Sure sir. Thank you so much and all the best.

Question: Kshitij Saraf - Tusk Investments - Analyst : Hi, good evening and congratulations on the continued good performance. But my question is slightly related to the use of QIP. and how you're thinking about investing in that business going forward? So we had a good addition to the business by [GTOP] on the IoT side, and you mentioned the plans on the drone side of the business as well. Just a bit more color on how you plan to invest going forward would be helpful, but would it be safe to assume that majority of the cash would be used in organic activities in the past, we've relied mostly on?

Question: Kshitij Saraf - Tusk Investments - Analyst : Okay, got it. That's helpful. Thanks a lot. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 16, 2024 / 12:30PM, CEIF.NS - Q3 2024 CE Info Systems Ltd Earnings Call