Skip to main content

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.

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.

Comments

Post a Comment

Popular posts from this blog

US investors' rights law firm announces probe against HDFC Bank

  The investigation is reportedly resulting from allegations that HDFC Bank may have issued materially misleading business information to the investing public.   American Law firm, Rosen Law, has announced an investigation of potential securities claims on behalf of shareholders of HDFC Bank. The firm is also preparing for a class action suit on behalf of bank’s shareholders. The investigation is reportedly resulting from allegations that HDFC Bank may have issued materially misleading business information to the investing public. Rosen Law, on its website, asked investors to provide their details if they have purchased HDFC Bank Limited securities and would like to receive information about the investigation concerning the class action to recover the investor losses in HDFC Bank Limited securities. “A representative of The Rosen Law Firm will contact you at no cost to you and provide you detailed information concerning the proposed class action to rec...
Post a Comment
Read more

At 156.6 Times, Burger King IPO Receives The Second Largest Subscription In 2020

The state-owned defence company, Mazagon Dock Shipbuilders' Rs 443-crore IPO had seen the highest subscription in 2020 at 157.4 times The initial public offering of Burger King, one of the fastest growing quick service restaurant chains in India with 268 outlets, turned out to be the third issue in the calendar year 2020 to cross the subscription mark of 150 times. With a subscription of 156.6 times, it has received the second highest subscription in the current year after Mazagon Dock Shipbuilders. Burger King India targets to open 700 restaurants by December 2026. The Rs 810-crore IPO was subscribed 156.6 times overall during December 2-4 as it received bids for 1,166 crore equity shares against offer size of 7.44 crore equity shares (excluding anchor book portion). The strong interest in the issue was owing to attractive valuations, strong brand positioning, healthy financial prospects, expected robust store expansion plans of the quick service restaurant industry in I...
Post a Comment
Read more

IT stocks rally, TCS hits new high; Wipro, Infosys, HCL Tech gain 2-4% each

Wipro added over 4 percent after the IT firm said its Board will consider a buyback plan on October 13. L&T Infotech, Infosys, HCL Tech, Mphasis, Tech Mahindra and Mindtree were the other gainers. The Indian stock market is trading higher for the sixth day in a row with Sensex jumping 479.35 points or 1.2 percent at 40358.30, and the Nifty gaining 132.20 points or 1.13 percent at 11871.10. The market rally was largely aided by IT stocks with the index jumping almost 4 percent led by index heavyweight Tata Consultancy Services (TCS) which hit new high. The company reported a profit after tax of Rs 7,475 crore for the quarter ended September 2020, registering a 6.7 percent sequential growth. The board members of the company have approved a proposal to buy back up to 5,33,33,333 equity shares of company, being 1.42 percent of the total paid up equity share capital, at around Rs 3,000 per equity share for an aggregate amount up to Rs 16,000 crore. Research and broking firm ICIC...
Post a Comment
Read more