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Earnings boost: Route Mobile shares spike 25% in three days to hit record high

In the half year ended September 2020, its profit more than doubled to Rs 60 crore compared to Rs 26 crore YoY and revenue grew by 54.5 percent to Rs 658.9 crore YoY.
Oct 29, 2020 / 01:50 PM IST
 
 
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Route Mobile shares have rallied 24.5 percent in three consecutive sessions and have touched a record high of Rs 990 on October 29 boosted by robust earnings performance.

The stock has given multibagger return of 180 percent from its issue price of Rs 350 per share, to all IPO investors, if they still hold allotted shares. It listed with 105 percent premium on September 21.

The cloud communication platform provider has reported a whopping 158 percent year-on-year growth in Q2FY21 profit at Rs 32.9 crore and registered a 77.7 percent YoY rise in revenue at Rs 349.3 crore in the quarter.

"Q2FY21 has been another quarter of strong performance, backed by better operating leverage, despite the trying circumstances. The pandemic has accelerated CPaaS adoption amongst enterprises, and Route Mobile continues to enable our customers in their digital communication journey," Rajdipkumar Gupta, Managing Director & Group Chief Executive Officer said.

As per Gartner estimates, by 2023, 90 percent of Global enterprises will leverage AP/ enabled CPaaS offerings to enhance their digital competitiveness, up from 20 percent in 2020. "We are optimally positioned to be at the forefront and drive this transformation," Gupta said.

At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) in Q2 shot up 143.6 percent to Rs 41.9 crore and margin expanded 330 bps to 12 percent compared to year-ago period, driven by operating leverage.

In the half year ended September 2020, its profit more than doubled to Rs 60 crore compared to Rs 26 crore YoY and revenue grew by 54.5 percent to Rs 658.9 crore YoY.

"Route Mobile witnessed positive momentum in revenues through the past 6 months (period ended September 2020)," said the company, adding COVID-19 resulted in accelerated adoption of digitisation initiatives by enterprises across the globe, and enterprises implemented significantly larger number of digital communication case studies, leveraging various communication channels.

The company has cash on books at Rs 393.5 crore as of September 2020.

The stock was trading at Rs 954, up 4.52 percent on the BSE at 12:09 hours IST.
Moneycontrol News
first published: Oct 29, 2020 01:50 pm

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