MAPMYINDIA — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

Moderator · Conference Operator

Good evening, ladies and gentlemen.

I'm Vidya, moderator for the conference call.

Welcome to

Thank you, Sir.

The next question comes from Darshan Engineer from Alchemy Capital.

Please go ahead.

Mr. Darshan, please go ahead.

There is no response.

I will move on to the next question.

The next question comes from Shobit Singal from Anand Rathi.

Please go ahead.

Shobit Singal Hello, Sir, congrats for the good set of numbers.

So, my first question is on order book year-to- date, if you can share, and how many clients we have added in both our segments till now?

Rakesh Verma On the order books, we have always maintained that it's on a yearly basis, that beginning of the year we will disclose what is the order book during the year and what is the open order situation.

That's the way I think our business will be understood better.

Otherwise, there'll be a lot of confusion also, for anybody's understanding.

Rohan Verma We have tried to give every quarter an update on the new set of customer wins by sector, by use case, to give you a kind of a continuing update on what type of customer wins and what type of new order book is being printed, but as a metric and a number will be reported at the end of the year.

So, you can refer to A&M business update and C&E business update to see what types of customers you know, we are getting into our kitty.

Shobit Singal Okay.

And second question is with respect to recent ruling on Google, and after the ruling, so they have started making some changes.

So, what does it looks like for our company?

And are we doing some discussion with smartphone OEMs as well now?

Thank you, Sir.

The next question comes from Moez Chandani from Centrum Broking.

Please go ahead.

Moez Chandani

Thank you, Sir.

The next question comes from Harsh Mulchandani from Kriis Portfolio.

Please go ahead.

Harsh Mulchandani Good evening, Sir.

I have just one question on understanding the measurement of investments.

So, these are all the investments which we have made across portfolio companies.

And even in future we will see these re-adjustments happening through P&L because of an accounting entry.

Is that understanding, correct?

Rohan Verma Yeah, that's right.

I mean, the revaluation is happening based on recent rounds that they have raised and the valuation reports that we have received, the lower of whichever it is, is the fair market value.

Harsh Mulchandani Sorry, sorry.

So just to confirm it's lower of cost or fair market value, correct right?

So, you have readjusted, because your market value has increased, but still it is below cost.

Rakesh Verma No. Look, if a new, let me put it this way.

If a new investment happens in that company, then the valuation at which that company has investment happened, that's one.

The fair market valuation report that we get, the lower of those two.

Harsh Mulchandani

The next question comes from Pugazh, an individual investor, please go ahead.

Pugazh Sir, thanks for the opportunity.

I've been reading lot of things about the Google thing versus our MapmyIndia thing, Sir.

So as a retail investor, do we have anything we need to worry about like on the competition because I'm hearing as they are very big players in the market and we are still we are not convinced with the way that Google is moving on.

Any comments, Sir?

Anything that you can add?

Thank you, Sir.

The next question comes from Pawan Kumar, an individual investor.

Please go ahead, Sir.

Pawan Kumar I want to know your dividend policy, Sir.

Last year you paid Rs.2.

So, I want to know like what's your dividend policy, Sir?

Rakesh Verma See our, we have a dividend policy as part of the corporate governance where the board looks at the end of the year, what dividend we should be paying and there are a few factors that the board would like to look at.

One is, what is the requirement of the cash that we need for our portfolio investors.

Like, to be very specific, we have had three very strategic investments, Gtropy, KOGO, and what we did today, Indrones.

So, they are directly going to impact or help in MapmyIndia’s business.

We have to look at what may be the requirements for that.

The second is, for our further growth of the company, we may look at some more additional investment opportunities in the area which are related to our business.

That's the second bucket.

And the third bucket is also what is the normal requirement and safe requirements for the business of our company.

So, considering these three factors, the board will look at how much dividend to pay.

Definitely we will be paying dividend.

How much to pay is something that the board will take a call in the next board meeting which should happen in May when we declare the earnings, it will happen in that earnings call.

Pawan Kumar

Thank you, Sir.

The next question comes from Bhavya Doshi from KRIIS PMS.

Please go ahead.

Bhavya Doshi Thank you for the opportunity, Sir.

Sorry for asking that question again.

But I wanted to understand, Bhavish Aggarwal tweeted, because they have acquired one company GeoSpoc.

Ola has acquired one company which is into this mapping.

So just trying to understand like you alluded, like it is not easy to build maps.

But has there been, like indication probably them wanting to switch, or will we still be part of their ecosystem or something around that?

Any thoughts regarding that, Sir.

Rakesh Verma As of now, neither Bhavish nor Ola have communicated anything to us.

And we have a contract with them where we are working with them.

So, they have acquired a mapping company.

Let's see, let's watch out what happens as Rohan said, it's not that simple to make maps.

Bhavya Doshi Got it, Sir.

That is reassuring.

Thank you so much.

That's it from myself.

Thank you, Sir.

The next question comes from Kevin Gandhi from Capgrow capital.

Please go ahead.

Kevin Gandhi Hello Sir, my question was part of the B2B platform business, like the prospects of the B2B platform business, because as per my understanding the B2B2C platform business, the Google seems to be dominant player.

So, what are the prospects that we are looking into the B2B platform business as of now, and if you can share the total addressable market and what lies ahead for the segment.

Next question comes from Manoj Shah from Lax Gov Investments, please go ahead.

Manoj Shah Hi, good afternoon.

My question is with respect to your presentation, you have mentioned that you have sold some data to a large marketing ad agency customer, can you explain basically what was the application of your data for that particular customer?

Rohan Verma Yeah, the use case is to help advertisers figure out where do they do their advertising spend or where do they do their micro market spend like location, it will help them use or understand which micro location, which colonies of which cities for example, to do what type of advertising.

So, it's a very popular use case.

A lot of customers require it and we are reaching out to more customers with that offering.

Manoj Shah Something similar to this, maybe, this can be potential used by say an FMCG company that can use this, on top of the country or the district level or a very micro level mapping kind of data so that the company can know where the customers are so they can target the particular region or district or within the other district subdivision levels kind of it.

Is that correct?

Rohan Verma Yeah, rural or urban, both at the micro level.

The next question comes from Amit Mishra, an individual investor.

Please go ahead.

Amit Mishra Hi, everyone.

Am I audible?

Hi, I missed the first part of the con call.

But can you please explain on the three acquisitions that you have done recently, how you want, what potential you see with them and how you would want to leverage your existing business through these three acquisitions.

Rohan Verma You will receive the transcript and audio in the next few days.

I think you can hear it, then.

I don't know, who is this?

Amit Mishra You have already explained it?

Thank you, Sir.

The next question comes from Ashish Chopra from Goldman Sachs.

Please go ahead.

Ashish Chopra Hi, thanks for the opportunity.

So just one question.

I think in the first half, when you had shared the Gtropy revenues, you'd mentioned that out of the Rs.

24 crores, Rs.

8 crores was built in standalone right?

Could you just share a similar number for the nine months, so in I think nine months, Gtropy that you've shared in the presentation is a total of around Rs.

44.1 crores.

How much of that could be built in standalone?

Rakesh Verma I would say the IoT business, now we are showing it clearly is Rs.

43 crores total.

Am I right?

Now out of this, see what happens is when the billing happens between Gtropy and C.E.

Info Systems to the customer, Gtropy to the customer direct, so, the entire thing in the consolidation knocks off each other.

So, that way if you try to, I can tell you that the Gtropy’s standalone also, how much is Gtropy’s standalone?

For the quarter you're asking or nine-months you are asking?

Ashish Chopra Either should be fine.

Thank you, Sir.

The next question comes from Vimal from Alchemy Capital.

Please go ahead.

Vimal Yeah, thank you very much.

Sir.

Sir, my first question was on consumer tech.

So basically, if I were to look at this business, and we've been reporting the segmental for the last seven or eight quarters, and assuming an average of Rs.

30 crores revenue per quarter, in the current quarter,

Thank you, Sir.

Rakesh Verma So, if there's no one else, let me just conclude by saying something.

If you look at our investor presentation, you'll find that we have clocked Rs.

209 crores for the nine months this financial year, in nine months.

The last year financial year we have clocked Rs.

200 crores, so, we have crossed that number already, quite well.

Similarly, the EBITDA last year, for the full year was Rs.

86 crores and we have crossed that number also to Rs.

88 crores.

So, and that percentages you have already seen.

So, we are happy that we are on the right track and our trajectory is quite good.

And we are moving in the right way towards both revenue from operations growth, and EBITDA and PAT growth.

Thank you, Sir.

There are no further questions.

Now, I hand over the floor to the management team for the closing comments.

Thank you and over to you.

Rohan Verma

Thank you, Sir.

Ladies and gentlemen, this concludes your conference for today.

Thank you for your participation and for using Door Sabha’s conference call service.

You may disconnect your lines now.

Thank you have a pleasant evening, everyone. ____________________________________________________________________________

Questions and answers

Moderator · Conference Operator

Thank you, Sir.

Ladies and gentlemen, we will now begin the question-and-answer session.

If you have a question, please press * and 1 on your telephone keypad, and wait for your turn to ask the question.

If you would like to withdraw your request, you may do so by pressing * and 1 again.

We will wait for a moment while the question queue assembles.

First question comes from Mr. Anmol Garg from Dam Capital.

Please go ahead, Sir.