### Eagle’s Eye View: Route Mobile Q1 FY25 Analysis
#### 1. About the Company
Route Mobile Limited is a leading Communication Platform as a Service (CPaaS) provider to enterprises, OTT players, and mobile network operators (MNO). The company offers a wide range of services including messaging, voice, email, and SMS firewall solutions.
#### 2. Industry Overview
The CPaaS industry is experiencing significant growth driven by the increasing demand for cloud-based communication solutions. The global CPaaS market is projected to reach $58 billion by 2028, growing from $23 billion in 2023.
#### 3. Peer Group of Companies
- **Twilio Inc.**
- **Sinch AB**
- **Vonage Holdings Corp.**
- **8x8 Inc.**
- **Bandwidth Inc.**
#### 4. Sales & Profit Growth Q1 FY25 Analysis
**Revenue Growth:**
- **YoY Growth:** From ₹967.34 crore in Q1 FY24 to ₹1,101.42 crore in Q1 FY25. This represents a growth of approximately 13.8%.
- **QoQ Growth:** From ₹1,017.03 crore in Q4 FY24 to ₹1,101.42 crore in Q1 FY25. This represents a growth of approximately 8.3%.
**Profit Growth:**
- **YoY Growth:** From ₹91.69 crore in Q1 FY24 to ₹81.16 crore in Q1 FY25. This represents a decrease of approximately 11.5%.
- **QoQ Growth:** From ₹95.16 crore in Q4 FY24 to ₹81.16 crore in Q1 FY25. This represents a decrease of approximately 14.7%.
#### 5. Profit Margins
- **Gross Profit Margin:** Approximately 21.4% in Q1 FY25, compared to 21.8% in Q1 FY24 and 22.1% in Q4 FY24.
- **EBITDA Margin:** Approximately 12.5% in Q1 FY25, compared to 12.8% in Q1 FY24 and 11.8% in Q4 FY24.
- **PAT Margin:** Approximately 7.4% in Q1 FY25, compared to 9.5% in Q1 FY24 and 9.2% in Q4 FY24.
#### 6. Segment-wise Growth and Share
**Revenue Contribution:**
- **India:** ₹237.62 crore (21.6% of total revenue), compared to ₹206.04 crore in Q4 FY24 and ₹165.87 crore in Q1 FY24.
- **Overseas:** ₹1,091.80 crore (78.4% of total revenue), compared to ₹906.43 crore in Q4 FY24 and ₹891.94 crore in Q1 FY24.
**Segment Profit:**
- **India:** ₹22.40 crore, compared to ₹19.24 crore in Q4 FY24 and ₹9.32 crore in Q1 FY24.
- **Overseas:** ₹79.04 crore, compared to ₹87.32 crore in Q4 FY24 and ₹92.68 crore in Q1 FY24.
#### 7. Region-wise Share and Growth
- **Major Contribution from Overseas:** Route Mobile's revenue predominantly comes from its overseas operations, accounting for approximately 78.4% of total revenue in Q1 FY25.
#### 8. Future Outlook
- **Revenue Growth:** Expected to grow by 18%-22% YoY.
- **EBITDA Margin:** Expected to maintain around 13%.
- **Strategic Initiatives:** Integration with Proximus Group to expand into mature markets like the USA and Europe.
- **Product Portfolio:** Focus on expanding the product portfolio with unique solutions across various industries.
#### 9. Important Highlights for Investors
- **Acquisition by Proximus Group:** Positions Route Mobile as a key player in the global CPaaS market.
- **Strong Financial Performance:** Consistent revenue growth and healthy profit margins despite global challenges.
- **Innovative Solutions:** Implementation of unique solutions like WhatsApp ticketing for metros in India, enhancing customer engagement and service delivery.
- **High Recurring Revenue:** Demonstrates the company's robust business model with high client retention rates.
### Summary Table
| Metric | Q1 FY25 | Q4 FY24 | Q1 FY24 |
|-----------------------------|-------------|-------------|-------------|
| Revenue (₹ crore) | 1,101.42 | 1,017.03 | 967.34 |
| YoY Revenue Growth | 13.8% | - | - |
| QoQ Revenue Growth | 8.3% | - | - |
| Gross Profit Margin | 21.4% | 22.1% | 21.8% |
| EBITDA Margin | 12.5% | 11.8% | 12.8% |
| PAT Margin | 7.4% | 9.2% | 8.4% |
| Segment Revenue (India) | 237.62 | 206.04 | 165.87 |
| Segment Revenue (Overseas) | 1,091.80 | 906.43 | 891.94 |
| Segment Profit (India) | 22.40 | 19.24 | 9.32 |
| Segment Profit (Overseas) | 79.04 | 87.32 | 92.68 |
| EPS (Basic) (₹) | 12.51 | 14.15 | 14.80 |
| EPS (Diluted) (₹) | 11.50 | 13.84 | 14.60 |
This detailed analysis provides a comprehensive view of Route Mobile's Q1 FY25 performance and outlook, highlighting key aspects for investors.
Disclosure:
Document was prepared for education purposes & should not be treated as a recommendation.
