MapmyIndia’s Q2 Profit Drops Marginally To INR 25.37 Cr Owing To Investments

Digital mapping startup MapmyIndia’s parent entity C.E. Info Systems on Thursday (October 27) reported a marginal decline in consolidated profit after tax (PAT) to INR 25.37 Cr in the September quarter of the financial year 2022-23 (FY23), compared to a profit of INR 25.39 Cr in the year-ago period. 

The startup’s profit momentum slowed down despite a 34.6% year-on-year (YoY) increase in its operating revenue to INR 76.31 Cr in Q2 FY23 from INR 56.68 Cr reported in the September quarter of FY22.

However, if compared sequentially, MapmyIndia’s PAT has increased by 4.8% from INR 24.2 Cr reported in Q1 FY23.

MapmyIndia Widens Investment Portfolio 

While MapmyIndia hasn’t specifically touched upon the reasons so far that led to the profit decline in the quarter, its increased expenses due to new investments are likely a significant factor. 

Last month, it invested INR 10 Cr to acquire a 26.37% stake in gamified social travel commerce platform KOGO. Besides, in February (Q4FY22), MapmyIndia’s board also approved acquisition of 75.98% shares in Gtropy. 

In fact, MapmyIndia’s profit before tax (PBT) stood at INR 35.5 Cr in Q2, registering a 4.3% decline from the PBT of INR 37.11 Cr reported in the same quarter last year.

The startup, which competes with Google Maps in India, witnessed an over 46% surge in its total expenses to INR 48.35 Cr in the reported quarter as against INR 33.04 Cr in Q2 FY22.

MapmyIndia launched a panoramic, three-dimensional experience like Google Street View in collaboration with Mappls in July this year. 

As per a statement by Rakesh Verma, chairman and managing director of MapmyIndia, the acquisition of Gtropy commenced in Q2.

“We commenced 3 sets of investments in Q2 FY23 that will help accelerate the company’s growth in revenues and earnings in the future,” said Verma. “We make these investments responsibly, with an eye towards the future, balancing both short- and long-term goals for growth and earnings.”

As per reports, MapmyIndia also recently invested an undisclosed amount in fuel aggregator startup Nawgati.

MapmyIndia’s expenses in marketing and business promotion, communication, including cloud hosting, its project and field survey expenses and other remaining expenses more than doubled YoY to INR 16.1 Cr in Q2 FY23 from INR 7.95 Cr in the same quarter last year.

Meanwhile, its employee benefit expenses saw a slight decline YoY to INR 16.86 Cr in the quarter versus INR 17.57 reported in Q2 FY22.

In Q2, the company spent INR 5.33 Cr as a cost of materials consumed, which stood at INR 4.55 Cr in the same quarter last year.

“Q2 FY23 was an exciting quarter for us, with lots of action on all fronts,” said Rohan Verma, CEO and executive director at Mapmylndia adding that H1 FY23 ended strong.

In fact, the startup’s H1 PAT was up 5% at INR 50 Cr from INR 46 Cr reported in H1 FY22 with operating revenue up 41% at INR 141.32 Cr.

“We continue to invest in building out our recently released RealView 360-degree and Metaverse 3D maps products, as well as our range of developer APIs, N-CASE suite, Digital Transformation Platform, and our consumer-facing Mappls app,” he added.

MapmyIndia shares closed 0.4% higher at INR 1,355.6 on the BSE on Thursday.