CE Info Systems Ltd Q4 FY2024 Concall Summary

Key Takeaways

• 35% revenue growth, IoT margins inflecting: Consolidated revenue grew 35% YoY, while IoT-led EBITDA margins expanded from 1.7% to 11.6% as the installed device base began throwing off high-margin SaaS revenue.
• INR400 crore Hyundai/Kia contract secured: A 5-year Map-led deal with Hyundai and Kia was signed mid-quarter, will begin converting in Q2, and is already inside the INR1,372 crore open order book.
• The SaaS flywheel is now visible in the numbers: Past device sales are generating recurring SaaS income with negligible incremental employee cost, a mechanism management expects will keep lifting IoT margins from here.
• Receivables stretched to fund growth: Receivable days moved to ~100 from 70-75, described as an organic working-capital investment to accommodate good customers and a March-heavy billing skew.
• What to watch next quarter: The Q2 ramp of the Hyundai/Kia contract, any further IoT margin expansion as the SaaS base compounds, and whether international or B2C initiatives produce the deals management hinted at for FY25.

Revenue Growth & Composition

• Broad-based 35% top-line expansion: Consumer tech and enterprise digital transformation revenue rose 49% YoY to INR194 crores, while automotive and mobility tech grew 23% to INR186 crores.
• Auto OEM penetration deepening: Over 0.25 crore new vehicles were built in with MapmyIndia solutions during FY24, up from 0.19 crore in FY23, driven by faster-than-industry uptake of the NCASE suite among OEMs including new-age EV companies.
• IoT device base grew 52%: Installed IoT devices reached over 2.9 lakh units, feeding the future SaaS pipeline.
• Order book composition is customer-driven, not company-driven: The fixed-pricing order book grew only 7% YoY because contract type follows what the customer wants; management expressed no preference between fixed-price and volume-based structures.
• Open order book conversion: Per an analyst's math, roughly INR100-plus crores of FY24 revenue came from orders booked during the year, with the balance drawn from the prior open order book. Management noted the analysis was approximate.

Rohan Verma: "The thing about MapmyIndia is we play in so many parts of the value chain. Our offering is wide, all the way from map data to APIs to software to IoT. If you look at any other players, if they are a competitor, they are only competition in one particular part of our portfolio."

IoT-Led Business: The Margin Inflection Story

• EBITDA margin swung from 1.7% to 11.6%: IoT-led revenue grew 91% YoY to INR112 crores, while EBITDA expanded 13x from INR1 crore to INR13 crores as scale, product mix and SaaS income all improved.
• The SaaS flywheel mechanism: Devices sold in prior periods now generate recurring SaaS revenue, and the fixed employee cost base does not rise in proportion, so incremental revenue drops through at high margin.
• Rental model adds a margin tailwind: Rental contracts, such as the 10,000-plus GPS device deployment with TSRTC, improve margins versus pure hardware sales because the 36-month (or longer) rental stream bundles depreciated hardware, SIM rental and software.
• No ceiling declared: Management declined to say margins will stabilize at current levels, arguing that as more hardware enters the market, the SaaS layer compounds and operating leverage continues.
• Map-led and IoT-led are both high-margin: The company describes itself as an IP company; the IoT device initially dilutes margin but creates the higher SaaS revenue stream that follows.

Rakesh Verma: "It's happening in a natural way also because the devices that we have sold in the past have started generating the SaaS part of it. And SaaS part, the beauty is, your fixed costs of the employees don't increase, and hence, you get the margin."

Deal Wins & Order Book

• INR400 crore Hyundai/Kia contract: A 5-year Map-led engagement signed mid-quarter, covering connected embedded navigation, connected cloud services, real-time traffic and call center. Existing platforms with Hyundai and Kia were ramping down; the new contract ramps up in Q2 in a bigger way because each OEM platform generation buys more products across more use cases.
• boAt smartwatch partnership: Navigation implemented via MapmyIndia SDK and API on the boAt Storm Call 3, with a per-device licensing revenue model, classified under consumer tech and enterprise digital transformation.
• Order book stands at INR1,372 crores: The Hyundai/Kia contract is included; management declined to disclose whether the boAt contract is also inside the book.

Costs, Cash & Capital Allocation

• Receivable days moved to ~100: The increase from 70-75 days was attributed to a March-heavy billing skew and a deliberate choice to extend payment terms to good customers as an organic working-capital investment to grow revenue.
• Technical services outsourced costs are project-linked: The cost line is tied to feet-on-the-street data collection for specific projects like property tax and is always reflected as an expense incurred for revenue generation.
• Intangible asset build is organic IP creation: The increase in intangible assets reflects capitalised internal product and technology development, amortised over time, keeping IP in-house rather than acquiring third-party technology.
• INR557 crore cash balance: When asked about returning cash to shareholders or deploying it inorganically, management deflected, saying "Why don't you allow us to grow the business?"
• QIP is an enabling resolution only: Shareholders approved a 1-year window for a potential QIP, primarily for inorganic opportunities but conceivably for organic if something special arises. Management stated there are no plans for it at this point; either it happens or it lapses.

Strategic Initiatives & New Verticals

• International push focused on FY25: Current international business is more Map-led and automotive-led; management said "we'll see something happen in this year" and that FY25 is the focus for getting international to a certain size and shape.
• Mappls App crossed 2 crore downloads: Monetisation of the consumer app base is part of the FY25 effort, with multiple revenue models under exploration.
• B2C contracts expected to grow: When asked whether more contracts like the Cadbury engagement are coming, management said "Yes, there will be. I mean nothing that we have to talk about right now."
• Government geospatial opportunity: Management cited the Indian government's target of a INR1 lakh crore geospatial economy by 2030, noting significant opportunities across all aspects of government.
• Board expanded to 10: Co-Founder and CTO Rashmi Verma rejoined the board, and Sundar Rajagopalan (formerly of Magicbricks) was inducted, adding consumer, tech and marketing expertise.

Rakesh Verma: "Probably, we are a unique company in this whole world, which has taken on both map and IoT as a business together. And that's the uniqueness that's going to place us much better than any other map company only or IoT company only."

Guidance & Commitments

Key Metrics