C.E. Info Systems Limited — Q4 FY25 earnings call

Call held 12 May 2025

Management summary

C.E. Info Systems reported strong Q4 and full-year FY25 results, driven by robust revenue and EBITDA growth. The company achieved an order book of INR 1,500 crores, reinforcing its confidence in reaching INR 1,000 crores revenue by FY28. While IoT device installations saw a decline due to a strategic shift to SaaS, IoT-led SaaS revenue significantly increased. The company declared a final dividend of INR 3.5 per share and is actively deploying cash reserves for strategic growth, including its international JV which is currently incurring initial losses.

Highlights

  • Q4 FY25 revenue grew 34% YoY to INR 143.5 crores.

  • Q4 FY25 EBITDA rose 47% YoY to INR 58 crores, with EBITDA margins at 40%.

  • Full-year FY25 revenue grew 22% to INR 463 crores, and EBITDA grew 15% to INR 179 crores.

  • Order book grew to INR 1,500 crores at the end of FY25, supporting the INR 1,000 crores revenue target by FY28.

  • Map-led business maintained a healthy EBITDA margin of 47%, and IoT-led business EBITDA margins expanded from 12% to 14% in FY25 due to improved product mix and increased SaaS income.

  • New licenses in automotive increased to 3+ million vehicles in FY25, up from 2.5 million in FY24.

Concerns

  • New IoT devices installed, rented, and sold decreased to 2.1 lakhs in FY25, down from 2.9 lakhs in FY24, attributed to a strategic shift towards SaaS revenue over hardware sales.

  • The Indonesia JV (TerraLink Technologies) resulted in an INR 2.8 crores impact on PAT in Q4 FY25 due to initial losses.

  • Government business, while growing, has increased receivable days to 94 days, though management noted no bad debt and sufficient cash reserves.

Key financials

2 periods

Q4 FY25

  • Revenue
    ₹143.5 Cr
    YoY +34%
  • EBITDA
    ₹58 Cr
    YoY +47%
  • PAT
    ₹49 Cr
    YoY +28%
  • EBITDA Margin
    40%

FY25

  • Revenue
    ₹463 Cr
    YoY +22%
  • EBITDA
    ₹179 Cr
    YoY +15%
  • PAT
    ₹148 Cr
    YoY +10%
  • EBITDA Margin
    39%

What they filed

Q1 FY27: revenue up 20.4%, net profit up 10.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue84 96 118 103 85 +1%85 −11%128 +8%124 +20%
EBITDA34 39 52 56 20 −41%23 −41%53 +2%60 +7%
Net profit31 33 49 50 18 −42%22 −33%47 −4%55 +10%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of FY25 Revenue
₹988 Cr Total
  • Map-led Revenue ₹345 Cr 34.9%
  • Consumer Tech & Enterprise Digital Transformation (C&E) ₹252 Cr 25.5%
  • Automotive & Mobility Tech ₹210 Cr 21.3%
  • IoT-led Revenue ₹117 Cr 11.8%
  • IoT-led SaaS Revenue ₹64 Cr 6.5%

Order book

high confidence

Total value

₹1,500 Cr

as of 2025-03-31 quantified

Execution

3 to 4 years to convert INR 1,500 crores into revenue

Composition

  • Government (client type) 20%
The company's order book grew to INR 1,500 crores by the end of FY25, with government orders constituting approximately 20%. Management expects this order book to convert into revenue over 3-4 years, providing confidence for future growth targets.

Source: Prepared remarks

Capital allocation

high confidence
  • Dividend ₹3.5/share (final)
    The Board was pleased to express our gratitude to all shareholders by declaring a final dividend of INR3.5 per equity share of INR2 each at the rate of 175% for the FY '25.
  • M&A TerraLink Technologies (Indonesia JV) Joint venture · Integrated · Consideration ₹[object Object] (cash)

    Expand into Southeast Asian market, leveraging Hyundai AutoEver approach, seeing it as an incredible opportunity mirroring India's market potential.

    INR 2.8 crores impact on PAT in Q4 FY25 due to initial losses; expected to start going down by end of FY26.

    The JV has been formed, certain revenues have started coming. And I think it's a matter of 1-2 years where you will see a good automotive revenue from the international market also. ... we've taken this JV with Hyundai AutoEver approach. ... we could immediately deploy $4 million or whatever, INR35 crores, into that joint venture.
  • Liquidity Cash ₹660 Cr Cash reserve of INR 660 crores, with INR 80 crores planned for deployment in government and IoT businesses, and remaining kept for future strategic opportunities like JVs.
    I did mention and I also said it in the Zee business interview in the morning. We do have clarity that around INR80 crores we'll be deploying to grow our government business and IoT business. So that's the first thing. Beyond that, as we have been saying always in the past that we want to keep the cash so that as and when any opportunity comes, like the joint venture with Hyundai AutoEver came. ... And we could immediately deploy $4 million or whatever, INR35 crores, into that joint venture. So we are deploying. If you just add up these 3 itself, it will show you that we have deployed and we are planning to deploy in the near future. And all are related to growing the business. And in terms of technology growth, new technologies and even the working capital itself.

Guidance & targets

Revenue

  • Total Revenue Revenue · FY28 · High confidence INR 1,000 crores
    Our order book achievements give us further confidence that we are on track to our stated milestone of crossing INR1,000 crores revenues by FY '28.

    — Rakesh Verma

  • International Automotive Business Revenue Revenue · 1-2 years · Medium confidence Good automotive revenue
    The second is the automotive business from the international operations is going to kick off. The JV has been formed, certain revenues have started coming. And I think it's a matter of 1-2 years where you will see a good automotive revenue from the international market also.

    — Rakesh Verma

  • Government Business Revenue Revenue · Future · Medium confidence Significant growth
    So I mean, we are going after that in a prudent way. So we do expect significant growth from government side as well, but we have to balance it out with impact on financials potentially.

    — Rohan Verma

Margin

  • EBITDA Margin Margin · Long term · High confidence 35-40%
    See, we have been always keeping in mind that we would like to get an EBITDA margin of 35% to 40% range. And we are seeing that, that's what we are delivering also. So there is no change in that strategy, okay?

    — Rakesh Verma

Advertising Spend

  • Advertising Spend as % of Revenue Advertising Spend · Next year · High confidence Around 3%
    Currently, it's only around 3% of revenues, I think. So do we plan to increase it to 5% to 6% levels? And would this have any impact on the overall margins per se? And also jointly, if you can indicate that should we assume margins for next year in a similar trajectory as this year?

    — Rakesh Verma

What to watch in Q1 FY26

Indonesia JV profitability

End of FY26
Current INR 2.8 crores PAT impact (loss) in Q4 FY25
Target Reduced losses, moving towards breakeven

Why it matters

The JV is a key part of international expansion, and its profitability will indicate the success of this strategy.

We think that towards the end of FY '26, this share of loss should start going down. That's what our assessment is. Right now, we saw INR2.8 crores impact on our PAT due to the share of loss. But as their revenues start coming in on their somewhat fixed cost base by FY '26, and we think that they should start being a turnaround.

Risks & concerns

  • Decline in new IoT device installations

    medium

    New IoT devices installed, rented, and sold decreased to 2.1 lakhs in FY25 from 2.9 lakhs in FY24, attributed to a strategic shift towards SaaS revenue over hardware sales.

    Management acknowledged

  • Increased receivable days from government business

    medium

    Government business has led to an increase in receivable days to 94 days, but management stated there is no bad debt and the company has sufficient cash.

    Analyst acknowledged

  • Competition and potential price wars in B2B automotive sector

    medium

    Analysts raised concerns about new competitors like Ola Maps and Genesys, and potential price wars in the B2B automotive sector, but management expressed confidence in their comprehensive solutions beyond just HD maps.

    Analyst downplayed

  • Initial losses from Indonesia JV

    low

    The international JV with Hyundai AutoEver (TerraLink Technologies) resulted in an INR 2.8 crores impact on PAT in Q4 FY25, though profitability is expected by end of FY26.

    Management acknowledged

Q&A highlights

6 direct
Confidence in FY28 revenue target given A&M slowdown Direct
Well, when you're talking about 30% growth average CAGR, what confidence we have, this is not just for automotive, it is all inclusive. So that's point number one. The second is the automotive business from the international operations is going to kick off. The JV has been formed, certain revenues have started coming. And I think it's a matter of 1-2 years where you will see a good automotive revenue from the international market also.

Analyst questioned the feasibility of the FY28 revenue target given a slowdown in the Automotive & Mobility Tech segment, and management clarified it's an overall target supported by international expansion.

Asked by Shobit Singhal

Growth mix (Map-led vs IoT-led) and margin impact Direct
The good thing is the SaaS revenue keeps going up. So that's the culmination of both work done before and also in year by all the teams to kind of keep growing the SaaS revenue. At the same time, to get growth, you have to do both new hardware sales, which will result in future SaaS revenue, but also SaaS revenue because that's where the margin is.

Analyst sought clarity on the primary growth driver and its impact on margins, as Map-led grew more than expected while IoT growth was impacted. Management explained the strategic shift to SaaS for IoT and its positive margin implications.

Asked by Chandramouli Muthiah

Indonesia JV losses and timeline to profitability Direct
So I think the international JV is actually going quite well. It's actually a business development phase right now. We think that towards the end of FY '26, this share of loss should start going down. That's what our assessment is. Right now, we saw INR2.8 crores impact on our PAT due to the share of loss. But as their revenues start coming in on their somewhat fixed cost base by FY '26, and we think that they should start being a turnaround.

Analyst inquired about the INR 2.8 crores loss from the Indonesia JV and its path to profitability, which management expects by end of FY26.

Asked by Chandramouli Muthiah

Government business impact on receivable days Direct
Pursuant to our letter dated May 07, 2025, please find enclosed herewith communication relating to Q4 FY2025 Earning Call. The said conference call with Institutional Investor / Analyst was held on May 12, 2025 to discuss the financial results of the Company for the quarter ended March 31, 2025. The aforesaid information is also disclosed on the website of the Company i.e. www.mapmyindia.com

Analyst raised concern about increasing receivable days (94 days) due to government business, which management acknowledged as a characteristic of the business but noted no bad debt and sufficient liquidity.

Asked by Anmol Garg

Deployment of INR 660 crores cash reserve Direct
I think I did mention and I also said it in the Zee business interview in the morning. We do have clarity that around INR80 crores we'll be deploying to grow our government business and IoT business. So that's the first thing. Beyond that, as we have been saying always in the past that we want to keep the cash so that as and when any opportunity comes, like the joint venture with Hyundai AutoEver came.

Analyst asked about the company's plans for its significant cash reserve, to which management detailed specific allocations for growth initiatives and strategic opportunities.

Asked by Amit Agicha

Competition in Automotive & Mobility Tech Direct
I think what you are saying you might be listening to those noises. Entry into the automotive sector is not that simple, number one. Number two, the entry what we are also hearing the noise is HD map, SD map. And as I said clearly, just an HD map is not an answer for any automotive company needs. So the noise will be there. We are watching that, and we are pretty comfortable that it's not going to impact us.

Analyst questioned the company's confidence amidst new competition (Ola Maps, Genesys) in the automotive sector, and management expressed comfort, highlighting the complexity beyond just HD maps.

Asked by Aman

2 min read 5 chapters

Detailed narrative

Strong Q4 and Full-Year FY25 Performance

C.E. Info Systems delivered robust financial results for Q4 FY25, with revenue growing 34% YoY to INR 143.5 crores, EBITDA increasing 47% YoY to INR 58 crores, and PAT rising 28% YoY to INR 49 crores. For the full fiscal year 2025, revenue reached INR 463 crores, a 22% YoY increase, while EBITDA grew 15% to INR 179 crores and PAT increased 10% to INR 148 crores. The company maintained a healthy EBITDA margin of 39% for the full year.

Order Book and FY28 Revenue Target Confidence

The company's open order book expanded to INR 1,500 crores by the end of FY25, providing strong visibility for future revenue. Management expressed confidence in achieving its stated milestone of crossing INR 1,000 crores in annual revenue by FY28, with the current order book expected to convert into revenue over the next 3-4 years. Government orders currently constitute approximately 20% of the overall business and new orders.

Strategic Shift in IoT Business Towards SaaS

While the IoT-led business revenue grew 5% to INR 117 crores in FY25, the number of new IoT devices installed, rented, and sold decreased to 2.1 lakhs from 2.9 lakhs in FY24. This decline is attributed to a strategic shift in focus towards higher-margin SaaS revenue over hardware sales. Consequently, IoT-led SaaS revenue increased to INR 64 crores in FY25 (from INR 45 crores in FY24), now representing over 50% of total IoT-led revenue, and IoT-led EBITDA margins expanded from 12% to 14%.

International Expansion and JV Performance

The joint venture in Indonesia, TerraLink Technologies, formed with Hyundai AutoEver, is progressing through its business development phase. While it incurred an initial loss of INR 2.8 crores impacting Q4 FY25 PAT, management anticipates that the share of loss will begin to decrease by the end of FY26, with significant automotive revenue from international operations expected within 1-2 years. The company views Southeast Asia as an incredible long-term opportunity mirroring India's market potential.

Capital Allocation and Shareholder Returns

The company maintains a strong liquidity position with INR 660 crores in cash reserves. Approximately INR 80 crores of this cash is planned for deployment to grow the government and IoT businesses. The remaining cash is being preserved for strategic opportunities, such as the investment of $4 million (INR 35 crores) into the Hyundai AutoEver JV. The Board declared a final dividend of INR 3.5 per equity share (175%) for FY25.

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