MapmyIndia Q2 Profit Slips 8% YoY To INR 30.35 Cr

Geotech company MapmyIndia’s consolidated profit after tax (PAT) declined 8% to INR 30.35 Cr in the September quarter of fiscal year 2024-25 (Q2 FY25) from INR 33.09 Cr in the year-ago period. 

On a sequential basis, PAT declined 15% from INR 35.86 Cr. 

Meanwhile, revenue from operations rose 14% to INR 103.67 Cr from INR 91.08 Cr in Q2 FY24. On a quarter-on-quarter basis (QoQ), operating revenue grew 2% from INR 101.49 Cr. 

Sale of map data and services generated INR 86.11 Cr of revenue in Q2. This figure rose about 13% from INR 76.21 Cr in Q2 FY24. The company said that the margins for its map-led business were impacted by increased spending for the consumer business and technical outsourcing.

MapmyIndia’s service offerings include royalty, annuity, subscription, software and projects namely Maps as a Service (MaaS), Software as a Service (SaaS) and Platform as a Service (PaaS). It is pertinent to note that MapmyIndia’s clientele for its services include Amazon, PhonePe, MG Hector, McDonald’s, among others.

The company found itself at odds with one of its customers Ola Electric during the quarter. In August, it accused the EV maker of illicitly copying its data to build its Ola Maps interface.

During the quarter under review, the company’s revenue from sales of devices rose 18% year-on-year (YoY) to INR 17.56 Cr. 

The company’s automotive and mobility tech business grew 27% YoY during the quarter to INR 60.9 Cr. 

Including other income of INR 9.92 Cr, MapmyIndia reported a total income of INR 113.59 Cr.

The geotech company’s EBITDA for the quarter declined 7.5% to INR 37.5 Cr from INR 40.5 Cr in Q2 FY24. In line with the drop in EBITDA, its EBITDA margin also contracted to 36.1% from 44.5% in the year-ago quarter.

In a statement, MapmyIndia chairman and managing director Rakesh Verma said that the decrease in margins can be attributed to the company investing on a continuous basis  for the past four quarters in its consumer business for future growth prospects. 

He also said that the downloads of its map app Mappls at the end of H1 FY25 stood at 25 Mn as opposed to 10 Mn at the end of H1 FY24.

“The overall market we serve faced challenges in Q2 FY25, but we managed to perform reasonably well thanks to our open orders and strong teamwork,” MapmyIndia COO Sapna Ahuja said. 

Along with the announcement of results, MapmyIndia also said that it will incorporate a joint venture with Hyundai Autoever, a wholly owned subsidiary of Hyundai Kia, in Indonesia. The new entity, PT Terra Link Technologies, will see MapmyIndia invest $4 Mn for a stake acquisition of 40%. Hyundai will control the rest of the stake.

It will allow the company to expand into the Indonesian market by mapping the entire country. Verma and Hyundai’s Asia Pacific president Jin Ho Kim have been nominated as the directors of the company. 

“Estimated revenue of the JV would be to the tune of USD multimillion over the next 5 years with order booking and revenue commencing from FY26 itself. This JV will also benefit current customers of MapmyIndia,” Verma said. 

A Closer Look At MapmyIndia’s Expenses

The company’s expenses zoomed about 33% YoY and 13% QoQ to INR 72.53 Cr during the quarter under review. 

Employee Benefits: The company spent INR 20.59 Cr on employee costs during the quarter, up 7% from INR 19.21 Cr in the year-ago quarter. This continued to be its biggest expense.

Cost of Material: These expenses zoomed 21% to INR 15.95 Cr from INR 13.20 Cr in the corresponding quarter of previous year.

Tech Service Outsource: MapmyIndia outsourced tech services worth INR 9.92 Cr during the September quarter, about 3X of INR 3.34 Cr it spent last year.

Ahead of the announcement of results, shares of MapmyIndia ended today’s trading session 0.72% lower at INR 2055.80on the BSE.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.