Telecom - Services
Route Mobile Limited provides cloud-communication platform services to enterprises, over-the-top players, and mobile network operators worldwide. The company offers omni-channel digital communication solutions in messaging, voice, e-mail, SMS filtering, analytics, and monetization. It also provides A2P messaging that includes SMS, 2-way messaging, and Acculync; enterprise email; RCS messaging; OTT messaging solution; voice application services; voice services comprising interactive voice response, Click2Call, missed call facility, outbound dialer; and software and service solutions, such as A2P SMS filtering, analytics, monetisation, hubbing solutions, AI/ML based A2P SMS firewall and filtering solutions, SMSC, and MMSC solutions to mobile network operators. In addition, the company offers TruSense, a digital identity and security suite that secures digital transactions; business process outsourcing (BPO) voice services, such as client support, technical support, and booking and collection services; and BPO non-voice services, which include client support through email and chat, IT support, and billing and data processing. Further, it provides its cloud-communication services to clients in the banking and financial, aviation, retail, e-commerce, logistics, healthcare, hospitality, media and entertainment, pharmaceuticals, and telecom sectors. Route Mobile Limited was incorporated in 2004 and is headquartered in Mumbai, India. Route Mobile Limited operates as a subsidiary of Proximus Opal Sa.
Growth: Good revenue growth. With 156.1% growth over past three years, the company is going strong.
Technicals: Bullish SharesGuru indicator.
Balance Sheet: Strong Balance Sheet.
Size: Market Cap wise it is among the top 20% companies of india.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Profitability: Recent profitability of 8% is a good sign.
Insider Trading: Significant insider selling noticed recently.
Comprehensive comparison against sector averages
ROUTE metrics compared to Telecom
Category | ROUTE | Telecom |
---|---|---|
PE | 16.61 | -740.91 |
PS | 1.37 | 4.80 |
Growth | 10.2 % | 6.7 % |
ROUTE vs Telecom (2021 - 2025)
Summary of Route Mobile's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
The management's outlook emphasizes leveraging synergies within the newly formed Proximus Global (integrating BICS, Telesign, and Route Mobile) to drive growth. Key points include:
Challenges include domestic volume volatility and pricing adjustments in new channels. Management remains confident in outperforming peers amid industry headwinds.
Last updated: Feb 25
Major Questions and Answers:
1. Question: Sir, if you can guide us on the guidance trend going forward?
Answer: Route Mobile aims to maintain a 15% CAGR growth over three years, with adjusted EBITDA margins near current levels. Growth outperforms industry trends despite macro headwinds, with efforts to improve Q4 performance.
2. Question: Sir, is there another question on the shifting on the messaging side? So like earlier, we were getting through message and now we are getting only WhatsApp message. So, obviously, it is impacting the margin. So if you can guide us, what kind of opportunity we are seeing going forward?
Answer: While SMS remains a cash cow, conversational use cases (e.g., WhatsApp) and RCS adoption (e.g., metro ticketing in India/Indonesia) offer growth. Route Mobile supports channel shifts and leverages Proximus Global's reach for cross-platform solutions.
3. Question: Between your commentary in H2 and what growth has been come in Q3, can you tell where are those misses if any?
Answer: Domestic SMS volumes dipped due to a bank redistributing traffic to a competitor. ILD and global volumes grew mid-teen. New products faced WhatsApp pricing adjustments, but overall performance remained strong.
4. Question: And is there any other, say on a nine months basis, where you can tell us how much is the Telesign's revenue?
Answer: Telesign contributed ~Rs.298 crore in nine months. Related-party transactions (e.g., Telesign) occur at EBIT-level margins, diluting reported EBITDA.
5. Question: Employee cost has increased while net additions are minimal. Could you explain?
Answer: A one-time long-term incentive plan (Rs.57.1 million for July"“Dec 2024) impacted Q3. Future quarterly LTIP costs will normalize to ~Rs.30 million until CY25.
6. Question: What is artificially inflated traffic, and how does it affect business?
Answer: Fraudulent bot traffic (e.g., highlighted by Elon Musk's Twitter audit) led enterprises to scrutinize CPaaS providers. Route Mobile's firewall/anti-spam solutions position it as a trusted partner to curb such traffic.
7. Question: Why are related-party volumes lower-margin? Will Telesign growth dilute margins?
Answer: Transactions with Telesign/BICS follow cost-plus EBIT margins (vs. higher operating margins). Synergies may offset dilution over time, but current pricing is validated by auditors.
8. Question: Can you comment on contingent liability for a Southeast Asian firewall contract?
Answer: A contract is under renegotiation due to geopolitical bans on social media apps. Auditors flagged it as a material uncertainty, but discussions aim for resolution.
9. Question: How does shifting to WhatsApp/OTT impact pricing and competitive edge?
Answer: WhatsApp commands higher per-transaction revenue than SMS. Route Mobile's telco partnerships and Proximus Global's omni-channel solutions (connect, engage, protect) retain its edge.
10. Question: Are $1B revenue aspirations revised due to 15% CAGR guidance?
Answer: The $1B target remains aspirational, but current market conditions (industry ~10% growth) warrant a cautious 15% CAGR outlook. Structural shifts (e.g., fraud prevention, RCS) may accelerate growth later.
11. Question: What is Telesign's revenue breakdown?
Answer: Telesign's Rs.300 crore in nine months reflects termination services for enterprises. Cross-selling digital identity solutions (post-regulatory approvals) could unlock future high-margin opportunities.
12. Question: Why is EBITDA margin below 13% guidance?
Answer: One-off costs (LTIP, integration) and related-party margin dilution impacted reported EBITDA. Adjusted for these, margins align with 12.5"“13% guidance.
13. Question: Any updates on large deals?
Answer: Pipeline includes undisclosed large RFPs (long-term, high-value) with Proximus Global, focusing on omni-channel and digital identity solutions.
14. Question: Does shifting from OTP to digital identity reduce revenue?
Answer: Digital identity solutions (e.g., silent authentication) combat fraud without sacrificing revenue. Margins improve, and TAM expands as enterprises prioritize security.
15. Question: How are LLMs/AI being integrated?
Answer: AI/ML tools optimize campaign personalization and ticket resolution. Route Mobile explores cost-efficient models (e.g., DeepSeek) but avoids disclosing infrastructure specifics.
Understand Route Mobile ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
PROXIMUS GLOBAL SA/NV (PREVIOUSLY KNOWN AS PROXIMUS OPAL SA/NV) | 74.86% |
SBI TECHNOLOGY OPPORTUNITIESn FUND | 6.55% |
ICICI PRUDENTIAL SMALLCAP INDEXn FUND | 1.11% |
SANDIPKUMAR CHANDRAKANT GUPTAn (held shares as a Trustee on behalf nof CC Gupta Family Trust) | 0% |
SANDIPKUMAR CHANDRAKANT GUPTA | 0% |
RAJDIPKUMAR CHANDRAKANT GUPTA | 0% |
CHANDRAKANT J GUPTA (HUF) | 0% |
RAJDIPKUMAR C GUPTA (HUF) | 0% |
SANDIPKUMAR C GUPTA (HUF) | 0% |
CHANDRAKANT JAGANNATH GUPTA | 0% |
CHAMELIDEVI CHANDRAKANT GUPTA | 0% |
SARIKA R GUPTA | 0% |
SUNITA SANDIP GUPTA | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
Analysis of Route Mobile's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
-Overseas | 82.6% | 1.1 kCr |
-India | 17.4% | 236 Cr |
Total | 1.4 kCr |
Valuation | |
---|---|
Market Cap | 6.16 kCr |
Price/Earnings (Trailing) | 16.7 |
Price/Sales (Trailing) | 1.37 |
EV/EBITDA | 10.52 |
Price/Free Cashflow | -67.34 |
MarketCap/EBT | 13.49 |
Fundamentals | |
---|---|
Revenue (TTM) | 4.48 kCr |
Rev. Growth (Yr) | 14.24% |
Rev. Growth (Qtr) | 4.05% |
Earnings (TTM) | 368.82 Cr |
Earnings Growth (Yr) | -24.79% |
Earnings Growth (Qtr) | -20.14% |
Profitability | |
---|---|
Operating Margin | 10.01% |
EBT Margin | 10.19% |
Return on Equity | 15.58% |
Return on Assets | 9.76% |
Free Cashflow Yield | -1.49% |
Investor Care | |
---|---|
Dividend Yield | 1.13% |
Dividend/Share (TTM) | 11 |
Shares Dilution (1Y) | 0.60% |
Diluted EPS (TTM) | 55.6 |
Financial Health | |
---|---|
Current Ratio | 2.18 |
Debt/Equity | 0.22 |
Debt/Cashflow | -0.18 |
Detailed comparison of Route Mobile against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
BHARTIARTL | Bharti AirtelTelecom - Cellular & Fixed line services | 11.09 LCr | 1.64 LCr | +5.10% | +37.39% | 40.97 | 6.76 | +9.56% | +152.65% |
TECHM | Tech MahindraComputers - Software & Consulting | 1.43 LCr | 53.53 kCr | +3.05% | +14.29% | 37.89 | 2.67 | -0.30% | +32.11% |
TATACOMM | Tata CommunicationsTelecom - Cellular & Fixed line services | 45.06 kCr | 23.02 kCr | +0.18% | -9.99% | 40.31 | 1.96 | +14.32% | +14.68% |
TANLA | TANLA PLATFORMSSoftware Products | 6.32 kCr | 4.06 kCr | +3.38% | -48.32% | 12.14 | 1.55 | +7.59% | -3.38% |
ONMOBILE | OnMobile GlobalOther Telecom Services | 525.86 Cr | 546.32 Cr | +11.12% | -37.94% | -15.8 | 0.96 | +2.26% | -339.90% |