C.E. Info Systems Ltd Management Discussions

(MD&A)

Economic Overview

Global Economy

The global economic landscape in 2023 was shaped by a series of significant events, including the ongoing recovery from the pandemic, geopolitical tensions, and shifts in monetary policies across major economies. As we move into 2024, the outlook appears cautiously optimistic, with the International Monetary Fund (IMF) forecasting a "soft landing" for the global economy, supported by moderating inflation and steady growth.

Trends

• Geopolitical Events: Geopolitical events, such as the conflict in Ukraine, tensions in the Middle East, and trade disputes, have had a significant impact on the global economy, leading to fluctuations in commodity prices, particularly oil and gas. All of this has disrupted global supply chains, affecting trade and investment flows.

• Growth Resilience: The global economy has shown buoyancy with an estimated growth rate of 3.1% in 2023, despite challenges such as tight monetary conditions and high debt levels. This can be attributed to stronger private and public spending, increased labour force participation, and the resolution of supply chain disruptions that plagued the economy during the pandemic.

• Inflation Dynamics: Inflation has been a major concern for economies worldwide, but there has been a faster-than-expected decline in inflation rates across most regions, thanks to favourable supply-side developments and restrictive monetary policies. Global headline inflation is estimated to have fallen to 6.8% in 2023 from its peak in 2022.

• Monetary Policy Shifts: Major central banks have raised policy interest rates to combat inflation, leading to high borrowing costs and tighter credit conditions. However, with inflation easing, there is an expectation of a gradual decline in interest rates, contributing to a more favourable economic environment in 2024.

Outlook

• Steady Growth : The IMF forecasts global growth to remain steady at 3.1% in 2024, with a slight increase to 3.2% in 2025. This outlook is supported by the expectation of continued disinflation and a soft landing for the global economy.

• Trade Dynamics: Global trade growth is projected at 3.3% in 2024 and 3.6% in 2025, below the historical average, due to rising trade restrictions and geopolitical tensions.

• Risks and Uncertainties: The global economic outlook is subject to risks, including potential commodity price spikes from geopolitical shocks, persistent underlying inflation, and uncertainties in the property sector of major economies.

Sources: International Monetary Fund, World Economic Forum, JP Morgan Economic Outlook Report

Indian Economy

In the face of global uncertainties and domestic challenges, the Indian economy has displayed impressive strength and sustained growth. With an estimated growth rate of 7.6% for FY24, significantly higher than global forecasts, India continues to be the fastest-growing major economy. The economy has managed to attract multinational corporations seeking quality services at reduced costs by leveraging its young talent pool for cost-effective outsourcing and off shoring services. Despite the challenges, proactive monetary policies by the Reserve Bank of India have played a crucial role in gradually easing inflation, setting the stage for continued economic growth in the coming years.

Trends

• Robust Growth: Indias economy has continued its strong performance with an estimated growth rate of 8.2% in FY24, driven by robust domestic demand, supported by a rebound in consumer spending and a recovery in the services sector.

• Inflation Management: While inflation has been a challenge for the Indian economy, timely policy interventions and supply-side measures have helped in managing inflationary pressures.

• Policy Reforms: The Indian governments focus on economic reforms, including initiatives to improve ease of doing business, attract foreign investment, and promote digitalisation, has contributed to the positive growth outlook.

Outlook

• Sustained Growth: The IMF forecasts Indias growth to remain strong at 6.8% in 2024 and 6.5% in 2025, supported by resilience in domestic demand and ongoing structural reforms.

• Investment Climate: The investment climate in India is expected to remain favourable, with continued focus on infrastructure development and initiatives to boost manufacturing and exports.

• Challenges: The Indian economy faces challenges such as rising oil prices, supply chain disruptions, and global economic uncertainties, which require careful policy management.

As we navigate through 2024, the global economic landscape presents both opportunities and challenges. The geospatial industry, in particular, is well-positioned to leverage the trends of digitalisation and infrastructure development. In the Indian context, sustained economic growth and policy initiatives are expected to drive the industrys expansion further. MapmyIndia remains committed to leveraging these opportunities while remaining vigilant to the evolving economic environment and working towards transforming the future through innovation.

Sources: S&P Global Ratings India Outlook, EY India Economic Pulse

Industry Overview

The geospatial industry is experiencing a transformative era, marked by rapid technological advancements and increasing adoption across diverse sectors. With a projected CAGR of 13.8% from 2023 to 2028, the industry is set to expand significantly, driven by the growing demand for geospatial analytics in applications ranging from urban planning and disaster management to agriculture and transportation. The integration of artificial intelligence, machine learning, and cloud computing is further enhancing the capabilities of geospatial solutions, making them more accurate, efficient, and accessible. As a result, the industry is poised to play a pivotal role in shaping the future of data-driven decision-making and spatial analysis.

Digital Maps and Location Intelligence Technology & Services

As businesses grow, so does the need to increasingly make smarter decisions. More and more organisations, as part of their broader digital transformation initiatives, are taking a geographic approach, analysing geospatial data to aid problem-solving.

Global overview

The global digital maps and location intelligence market was valued at USD 272.9 billion (INR 22 trillion) in 2023 and is estimated to be around USD 596 billion (INR 49.5 trillion) market by 2030 growing at a CAGR (2023-2030) of close to 11.8%, encompassing a wide range of solutions, supplemented with location-based data services, and navigation tools.

Indian Overview

Indias position in the global digital maps and location intelligence market is strategically superior owing to its prowess to mitigate data security risks by fostering localized data storage and management practices, at the same time, offering businesses a richer and more accurate map experience. The Indian market for digital maps and location intelligence is anticipated to reach close to USD 8.9 billion by 2030, from USD 3.0 billion in 2023, reflecting a robust CAGR of 16.9%, primarily fuelled by the increasing adoption of map and geospatial solutions by businesses. Growth in sectors like mobility, logistics, and e-commerce directly is translating into a rising demand for robust geo-spatial solutions for efficient operations and enhanced customer experiences. With growing smartphone penetration, technological advancements in 5G technology and Artificial Intelligence, map functionalities and features are expected to witness a revolution, offering a seamless and intelligent user experience. Artificial intelligence and machine learning play a pivotal role in spatial analysis and map creation by streamline tasks like identifying road layout changes, updating speed limits, and forecasting traffic patterns, thus enhancing map accuracy and efficiency. With the in corporation of real-time data feeds from various sources, such as traffic updates, weather information, and event listings, to provide a more dynamic and comprehensive picture of the environment. Digital maps are actively enhancing accessibility features to cater to a wider audience, including screen readers, voice control options, and haptic feedback functionalities. Gradually, geo-spatial analytics solutions are expected to experience the fastest growth within the entire market, including Digital Maps which form the core map data utilised in various applications, and Map Development and Integration Services which encompasses a mix of digital map providers and third-party service providers who specialize in integrating map functionalities within existing systems. Government bodies are also recognizing the value of digital maps for public services, with applications in healthcare, land surveys, agriculture, and defence. This trend is expected to accelerate further.

Automotive & Mobility Industry

The Indian automotive industry is undergoing transformation driven by a confluence of factors. Evolving industry standards, changing consumer preferences, and a growing emphasis on sustainability are all pushing advancements in various areas, including the rise of Mobility-as-a-Service (MaaS), connected cars, shared mobility, and the adoption of smart factories.

In FY2024, India presented strong domestic sales figures with 23.85 million units out which 17.5 million units were 2-wheeler sales, and 4.1 million units were passenger vehicle sales (including sedans, hatchbacks, and SUVs). Similarly, commercial vehicle sales reached 0.9 million units in the same year. Electric vehicles, although still at a nascent stage, witnessed a surge in registrations, from 1 million in 2022 to over 1.4 million in 2023. The Indian EV market is estimated to reach a value of USD 120.3 billion by 2030, highlighting its immense potential.

With a growing number of vehicles to cater to, along with a USD 50 billion share in the global engineering and R&D market in 2023, the Indian automotive sector contributes an estimated 8-10% of this expenditure, aimed at digital transformation initiatives. These extent to several hardware and software-based offerings, including navigation engines, connected vehicle services, autonomous vehicle safety platforms, shared mobility platforms, EV mobility platforms, fleet monitoring solutions, field workforce management solutions, route optimization solutions, emergency response solutions, intelligent traffic management solutions, and smart street lighting solutions.

The application of maps within the automotive industry extends far beyond navigation. It encompasses traffic management, IoT and software applications, geospatial technology, telematics, and more. Modern vehicles are increasingly equipped with these functionalities, creating a diverse and lucrative market for navigation service providers. Over the next decade, embedded and connected location services will remain a core component of in-vehicle infotainment systems for carmakers, coupled with features like real-time traffic updates, live hazard warnings, and near real-time parking availability information. The Indian automotive industrys digital transformation presents exciting opportunities in the mobility and navigation space. As shared mobility and autonomous vehicles gain traction, the demand for location-based services is set to surge. By capitalizing on Indias strong R&D capabilities and embracing innovation, map and navigation companies can play a vital role in shaping the future of mobility in the country.

Consumer Tech and Enterprise Industry

Digital transformation is a defining theme of modern economic growth, impacting all industries and fuelling the expansion of the digital maps and location-based services market. Indias digital services market is poised for significant growth, with a projected CAGR of 12.1% to reach USD 92.3 billion (INR 7.6 trillion) by 2030. In contrast, legacy services are anticipated to experience a CAGR of less than 5% during the same period. This surge surpasses the growth of legacy services, highlighting the allure of digital solutions. Businesses are recognizing the cost-efficiency and competitive edge that digital transformation offers. This trend is particularly evident within the IT sector, where organizations have readily embraced digital tools to boost productivity and cost-effectiveness.

Digital transformation across industries is incorporating a geospatial dimension, driving demand for location-enabled products and services. Businesses are recognizing the strategic value of location intelligence – the ability to leverage geospatial data to gain insights, improve decision-making, and enhance customer experiences. Indias consumer digital transformation is experiencing strong growth, powered by a massive user base and rapid technology adoption. The market is expected to reach a staggering $1 trillion by 2025, propelled by sectors like e-commerce and mobile wallets witnessing a cashless transaction boom (projected to reach $1 trillion by 2023). In-app advertising in India is on the rise (over $6 billion expected in 2024). Immersive technologies like AR and VR experiences are shaping in-app advertising. Advertisers are also prioritizing user privacy with transparent data practices and location-based targeting for more relevant ads. Vernacular content platforms are bridging the digital divide, with regional language internet users expected to reach 536 million by 2027. This transformation extends beyond commerce, with online education, healthcare, and entertainment sectors seeing significant digital adoption. Government initiatives like Digital India further accelerate this growth, solidifying Indias position as a global leader in consumer digital transformation. Greater smartphone proliferation, improved internet connectivity, rising discretionary spending, along with the increasing use of mobile apps for various activities is driving this transformation.

Geospatial Regulations since FY22 – An Update

The National Geospatial Policy 2022 was a significant step towards establishing India as a frontrunner in geospatial technology. This citizen-centric policy outlined a comprehensive strategy to cultivate a robust geospatial ecosystem, enhance geospatial information management, and to make geospatial data readily available for commercial use by 2025, unlocking its vast potential for economic growth. The New Geospatial Guideline envisages the Indian geospatial market to reach Rs 1 Lakh Crore by 2030.

The policy has already yielded notable achievements:

• High-precision positioning: A network of continuously operating reference stations has been established across India, providing centimetre-level accuracy for location-based services like navigation and pinpointing optimal retail locations.

• Open geospatial data: The development of geospatial data-sharing portals empowers entrepreneurs to leverage open data and satellite imagery to create innovative applications that benefit both citizens and governance.

• Capacity building: Academic institutions and government programs are spearheading initiatives to equip the workforce with the necessary geospatial skills.

• Collaborative leadership: The Department of Science and Technology has formed an expert committee to guide the National Geospatial Programme, fostering a collaborative approach to propel the geospatial ecosystem forward.

While the National Geospatial Policy is making headway, its worth noting the significant progress achieved under Indias Space Policy. ISROs ability to provide high-resolution satellite imagery (up to 5m resolution) proves invaluable for the research community and startups that previously relied on foreign sources for remote sensing applications. Aligning efforts between the National Geospatial Policy and Space Policy, with a focus on data sharing and collaboration, can further accelerate Indias advancements in geospatial technology.

Regulatory Developments in Geospatial, Automotive, and Electric Vehicle Industries

• Geospatial: The Geospatial Information Deregulation Bill of 2022 removes restrictions on acquiring and using geospatial data in India. This aligns with the National Geospatial Policys focus on a citizen-centric approach and promotes innovation in the sector. The policy is expected to benefit businesses and research institutions by facilitating easier access to geospatial data.

• Automotive: The Indian government is prioritizing car safety by considering mandatory implementation of Advanced Driver Assistance Systems (ADAS) features in all new cars. This initiative builds on existing regulations requiring airbags and other safety features. The phased rollout of ADAS features like lane departure warning and automatic emergency braking aims to significantly reduce road accidents by 2030.

• Electric Vehicles: India has ambitious targets for electric vehicle adoption by 2030, 70% for commercial cars, 30% for privately owned cars, 40% for buses, and 80% for 2 wheelers and 3 wheelers. The government is actively promoting EV usage through various initiatives, including the National Electric Mobility Mission Plan and FAME India scheme. Regulations are being streamlined to make EVs more affordable and accessible. These include simplifying charging station operations and eliminating permit requirements for certain electric vehicles.

About MapmyIndia

We are a data and technology products and platforms company, offering proprietary digital Maps as a Service ("MaaS"), Software as a Service ("SaaS") and Platform as a Service ("PaaS"). As per Frost & Sullivan, we are Indias leading provider of advanced digital maps, geospatial software and location-based IoT technologies. We provide products, platforms, application programming interfaces ("APIs") and solutions across a range of digital map data, software, and IoT for the Indian market under the MapmyIndia brand, and for the global market under the Mappls brand. We have serviced over 2300 enterprise customers since our inception. During FY24, we had over 880 customers on our SaaS, PaaS and MaaS platforms. Having pioneered digital mapping in India in 1995, we have earned our market leadership position in this industry and built a strong moat by capitalizing on our early mover advantage, developing proprietary and integrated technologies, full stack product offerings, continuous innovation, and robust sustainable business model. Having worked with over 2300+ customers since inception including automotive OEMs, new-age enterprises, businesses across industry verticals & government organizations, we have ensured that we continue to service our customers to the highest capacity, and can be witnessed by our customer growth, diversification and de-concentration, as well as healthy retention. We worked with 880+ customers during FY24 out of which there were 130 meaningful corporate customers and 50 meaningful government customers.

As a products and platforms company, Your Companys operations are powered by multiple engines that work together to ensure the optimal business mix and serve as growth drivers. In line with the various lenses we use to look at the business at a more granular level, our operating segments can be considered from a product-type view and also from an end-customer market view.

Product Segments

Map-led business

• This business is driven by the licensing of our maps and makes up majority of our revenues.

• Revenue from this segment grew from INR 222.4 Cr in FY23 to INR 267.0 Cr in FY24, contributing 70.4% to total revenues in FY24.

• Map-led business is extremely profitable since the major development costs of building the map products have been borne over the past 20+ years, with operating leverage kicking in realizing EBITDA margins higher than 50%.

• We maintained a healthy EBITDA margin in our Mapled business of 53.6% in FY24.

(Rs in crore)

Particulars	FY23	FY24	Growth
Revenue from	222.4	267.0	20.0%
Map-Led
Map-Led	116.9	143.2	22.5%
EBITDA
EBITDA margin	52.6%	53.6%	107bps

IoT-led business

• This business is driven by selling of IoT devices followed by a trail revenue model driven by our SaaS solutions.

• Since the re-launch of the Mappls devices in the year prior, we have observed continued traction towards our Mappls smart gadgets and devices that have steadily been improving both our profitability and volume growth. With the complete integration of Gtropy into this segment, we are poised to expand our suite of offerings while this business looks forward to innovation.

• Our IoT business has significant operating leverage as indicated by following financial highlights:

(Rs in crore)

Particulars	FY23	FY24	Growth
Number of IoT devices sold/ rented	1.9 lakh+	2.9 lakh+	53%
Revenue from hardware sales	42.2	67.0	59%
Revenue from SaaS subscription	16.8	45.4	170%
IoT Total Revenue	59.1	112.4	90%
IoT EBITDA	1.0	13.0	1200%
EBITDA margin	1.7%	11.6%	990bps

End Customer Segments

Automotive & Mobility Tech (A&M)

• Your company works with automotive OEMs (vehicle manufacturers) of four-wheelers, two-wheelers, commercial vehicles, electric vehicles as well as organisations involved in people mobility and logistics, and our offerings consist of our N-CASE (Navigation, Connected vehicle, Autonomous safety and advanced driver assistance systems, Shared mobility and Electric mobility) of digital maps and SaaS, PaaS, APIs, IoT and solutions in the areas of telematics, and logistics optimisation, which they can embed into their new vehicles and integrate with their existing fleets of vehicles.

• Your Company continues to outperform the automotive industry growth rate and we have maintained our dominant market position owing to our signature quality of products and platforms, optimized business model and domain expertise. We continue to remain strategic partners with leading global OEMs and our offerings help our B2B2C and B2B customers to increase the value and benefits of their vehicles to their owners, drivers, and passengers, and help them in moving people and goods in a faster, safer, and cheaper manner.

• Some of our automotive OEM customers include Hyundai and MG Motor among many other market leading manufacturers. Some of our mobility customers include BluSmart, Avis and Safexpress among many other leading goods and people transportation and logistics companies.

Revenue Highlights and Updates

• A&M Revenues grew by 22.3% in FY24 driven by continued adoption across our NCASE suite among automotive OEMs and increasing use-cases within existing customers.

• 2.5 million new vehicles (4-wheelers, 2-wheelers and CVs, across ICE and EV segments), went built-in with MapmyIndia Mappls in FY24, up 32% from 1.9 million during FY23.

• We won contracts with the following OEMs as they went live with our platforms in the NCASE suite during the year.

• Hyundai Auto OEM – Order value of Rs 400 Crs won to be realised over 5 years for licensing of Map & Connected Services Contents including Real Time & Predictive Traffic, Mobile SDK, Online Search and Call Centre Maps, for Embedded Connected Navigation & Connected Car Services of Hyundai and Kia Cars OEM Business in India.

• Market-leading 2-wheeler EVs, with key go-lives including the Hero MotoCorps new Harley Davidson X440 vehicle and the flagship Hero App companion app, as well as the premium Ultraviolette F77 EV bike.

• Won a deal with a 4-wheeler OEM customer for IoT supply.

• Won a deal with an OEM customer for Shared Mobility Software platform and CV (Bus).

• Won a deal with an OEM customer for Connected Vehicle Software platform.

• Large Indian 4W OEM signed up for multiple new vehicle models across ICE and EV, with new EV 4W go-live in Q3.

• European 2W OEM sign up for navigation along with go-lives for multiple EV 2W OEMs.

• Go-live of EV Bus management solutions for an Indian Bus OEM.

• Large 4 wheeler OEM win for ADAS maps.

• Large Indian Auto OEM win for navigation across ICE and EV vehicles.

• Won contracts for our IoT & logistic SaaS business as well.

• Go-live with multiple schools adopting IoT-led school rbus management and child safety solutions.

• Expansion of business with large State Road Transport Corporation business for public transit IoT-based monitoring and consumer-facing app solution.

• Extremely prestigious deployment for the G20 event for VIP cavalcade movement planning & monitoring.

• Won a deal for Video Telematics for Employee Transport Safety from large manufacturing company.

• Revenue from OEMs for Mappls Kogo travel assistant & commerce solution has begun flowing through.

Consumer Tech and Enterprise Digital Transformation (C&E)

Your company has been one of the pioneers of digital transformation, big data processing and analytics and IoT-based platforms. We have worked with digitally native companies, traditional companies, goods mobility companies and government entities across industry verticals by offering our suite of digital maps and SaaS, PaaS, APIs, and solutions in the areas of location intelligence, geospatial analytics, geographic information systems (GIS), digital automation and AI. Our customers then embed these into their consumer facing apps and leverage the solutions for their digital transformation initiatives. Our offerings seek to help our B2B2C customers in increasing the value and benefits of their apps to their users. Our offerings also seek to help our B2B or enterprise customers in achieving their organisation- and industry-specific, strategic, and operational objectives driving them towards higher revenue growth, cost efficiencies, faster execution capabilities, and better user service. Our new-age consumer internet technology customers include PhonePe, Flipkart and Yulu among many others across verticals such as global operating system platforms, social media apps, fin-tech companies, ride sharing and food delivery companies, IoT device manufacturers etc. Our enterprise customers include HDFC Bank, Airtel and GSTN among many other customers across verticals such as BFSI, telecom, FMCG, industrials, government etc.

• Re venue grew by 49.3% in FY24 as our use cases continued to expand leading to more up-sell and cross-sell opportunities.

• The C&E segment witnessed significant customer traction during the year, as highlighted below:

• Multiple consumer-facing tech companies such as a large ecommerce player, D2C brand, food delivery company, and travel commerce site, for APIs to improve delivery address capture for improved efficiency, leveraging MapmyIndias more detailed and accurate address data and geocoding capabilities.

• Multiple ONDC (Open Network Digital Commerce) enabled apps up for APIs, marking MapmyIndias increased presence in the growing ONDC ecosystem.

• Multiple corporates across industry sectors – BFSI, energy, consumer durables, public policy research and funding – for digital transformation platforms including workforce management, geospatial analytics etc. Government business continues to grow across maps, APIs, IoT, drones etc.

• IoT-led business continues to grow strongly with key wins including large metals company adopting Video Telematics solutions for advanced safer logistics, and also with upselling of additional IoT use cases within existing large cement company.

• Multiple go-lives and wins across variety of new-age tech & traditional corporate customers for multiplesolutions,includingexpansionofbusiness wiThexisting Payments & Fin-Tech conglomerate customer for territory/beat planning of large field force using geospatial analytics & API platform.

• Large E-commerce Company transporters and Multiple Large Cement companies signed up for IoT-led logistics optimisation, and Large Steel company signed up for Video Telematics for Mine Vehicles.

• Multiple wins & go-lives across consumer tech companies, enterprises across industry verticals, and government business based on geospatial-led digital transformation including for defence & drones.

• Multiple wins across large e-commerce & D2C sectors for map APIs for use cases covering address capture, location-based personalization & map-driven user experience improvement.

• Drone 3D mapping & risk monitoring for large logistics company warehouse/yard, and across Payments & Fintech industry for location-data based risk scoring.

• Wins for IoT-led logistics monitoring including Control Tower across cement, sugar & steel industries and also for PMGSY Road Construction & Food/Civil Supplies Distribution Monitoring.

• Large electronics company implemented our workforce automation solutions for their service teams.

• Large D2C wearables company implemented navigation on their watches.

• Large paints manufacturing companies implemented territory planning and sales analytics using our software tools.

• Large QSR company implemented our IoT with temperature monitoring for their food movement from warehouse to stores pan-India.

• FMCG major went live with our field force automation tools for their sales force and analytical tools for sales analytics.

• Large national, state & local government organisations signed up for our offerings as well.

• Achieved Defence business and revenue based on wins and execution of multiple Defence customer projects.

• Multiple government wins and go-lives including for a State Housing and Urban Development department, a State Town & Country Planning Organisation, a State Civil Supplies Corporation, a State Electronics Development Corporate etc, a Smart City and a Municipal Corporation for various use cases and covering a range of MapmyIndia products, platforms and solutions.

• Won Municipal corporation in western region – property tax assessment system along with drone-based digital twin mapping (in INR Cr)

• Won Large North Indian State Police Emergency Response System business which incorporated maps, navigation, geospatial software, IoT devices and IoT SaaS

• Map-led and IoT-led solutions and use cases for Union Governments Viksit Bharat pan India campaign in-field & online

• UP State Tourism & Ayodhya Metaverse solution business wins

Order Book

(in INR Cr)

	FY22	FY23	FY24
Open Order (Current year)	377.5	699.6	918.0
New Orders	523.6	511.8	833.9
Revenue	(200.4)	(281.5)	(379.4)
Open Order (Next year)	699.6	918.0	1372.5

• Our Open Order book saw a healthy growth of 49.5% in FY24. Historically, the Open Order Book to Revenue conversion ratio has been 3-5 years. This gives us confidence and revenue visibility for the upcoming years.

• However, our next leg of growth will come from annual new orders as we unlock upselling and cross selling opportunities with our existing and new customers. Revenue received in FY24 came from a customer base of 880+. The new customers are expected to start contributing to our open order book in the upcoming quarters as we sign multi-year contracts with them.

• More volume based orders were booked during the year driven primarily by Automotive orders.

Our Key Inorganic Investments in FY24

MapmyIndia has been a proponent of creating strategic partnerships and leveraging the possibility of combined efforts resulting in better output and more service offerings. Listed below are the inorganic investments done in FY24:

Indrones:

InDrones is engaged in the business of manufacturing of the drones, data analytics using high resolution data and developing end to end solution leveraged by drones, IoT and other sensors which helps digitize various sectors including but not limited to agriculture, mining, energy, telecom, infrastructure, construction, disaster management and among others. Your company bought a stake of 20% on fully diluted basis for Rs. 7 Crore. Investment Raionale: To broaden and deepen our addressable market, enabling us to offer comprehensive and differentiated endto-end offerings to users across a large variety of industry verticals by combining MapmyIndias suite of digital maps, geospatial software and location-based IoT tech, coupled with Indrones suite of drones and drone-based solutions and services. The investment will also strengthen our ability to leverage cutting-edge drone technologies.

Kogo Tech Labs:

Kogo is a cutting_edge start_up aiming to build the worlds largest travel & hyper_local discovery, recommendations, commerce, social and gamified platform. Your company increased its stake to 40.37% by investing Rs.9 crore during the year.

Investment Rationale: The increased investment is owing to strong value-add with our B2C offerings and a growing pool of opportunities to drive consumer engagement, brand loyalty and in_vehicle commerce monetisation opportunities by integrating Kogos gamified travel, outdoors and hyper_local content, community & commerce platform with the Mappls ecosystem.

Future Outlook

We at MapmyIndia believe that we are on the verge of an extremely nascent market that has just begun understanding the massive opportunity present in the near future. We had outlined that we expect to realize revenues of INR 1000 crores by FY27/28, and as such, we expect to see strong demand for our offerings powered by the following:

• Automotive – Changing industry trends with increased focus on smart vehicles, connected vehicles and electric vehicles.

• Enterprise – Increasing demand for digital transformation and analytics.

• Government – Constant infrastructure development and collaborations to develop smart programmes for various departments and divisions.

• Mobility and telematics/fleet management solutions for B2B customers.

Apart from our existing business lines, we are also bullish on several new business lines that we have been incubating and developing internally. We believe that these innovative segments will also be a strong growth driver for our business. These include:

• Drones – Favourable government policy and a very nascent opportunity.

• International – Many customers are requesting us to take our services to different geographies via partnerships with them.

• B2C – Mappls app user growth driving revenue across inapp advertising, mappls gadgets sales and AI travel experiences

Human Resources

C.E. Info Systems Ltd. continues to be a highly desirable company to attract and retain talent. Our key senior management continue to provide their valuable insights into developing the company and realizing the massive opportunity ahead of us and we are grateful for the constant support and high quality of work from our team who have stayed with us through thick and thin and make up the backbone of our Company. As a result of the job satisfaction and validation provided to quality talent, we were able to stay ahead of the industry-wide war for talent, reporting better attrition (9.8%) than the industry average (˜18%). We are proud to report that we offer Employee Stock Option Plans (ESOPs) to more than 200 senior employees of our workforce (around 30% of our permanent workforce) which is significantly higher than the industry standard. As of FY24, your companys workforce reported a strength of 1,292 employees, up 10% from 1,170 employees in FY23. Attrition was 9.8% for the year, down from 16.9% in the previous year. Further break-up of the workforce is as follows:

Financial Review

Summary of Consolidated Financial Performance for the Year ended March 31, 2024, is as below.

Consolidated Balance Sheet

(in INR Cr)

	FY24	FY23	% Change
Fixed Assets	19.6	11.9	63.6%
Investments	238.4	134.6	77.2%
Goodwill	4.3	4.3	0.0%
Intangible Assets	35.1	23.4	50.2%
Other non-current assets	60.2	54.8	9.9%
Total non-current assets	357.6	229.1	56.1%
Investments	170.7	227.9	-25.1%
Trade Receivables	104.7	58.3	79.7%
Cash & cash equivalents	73.5	76.1	-3.4%
Other current assets	85.4	79.2	7.9%
Total current assets	434.3	441.4	-1.6%
Total Assets	791.9	670.5	18.1%
Equity	659.7	542.3	21.7%
Lease Liabilities	2.2	7.4	-70.1%
Other non-current liabilities	10.7	7.5	41.9%
Total non-current liabilities	12.9	14.9	-13.4%
Lease Liabilities	5.1	4.6	11.6%
Trade Payables	25.1	13.1	91.8%
Other current liabilities	89.1	95.7	-6.9%
Total current liabilities	119.3	113.4	5.3%
Total Equity and Liabilities	791.9	670.5	18.1%

Assets

Total assets increased by 18.1% to Rs. 791.9 Cr in FY2024 from Rs. 670.5 Cr in FY2023, primarily due to increased trade receivables, intangible assets and plant and property.

Equity

Total equity increased by 21.7% to Rs. 659.7 Cr in FY2024 from Rs. 542.3 Cr in FY2023, primarily due to inflow of surplus funds into other equities and reserves.

Liabilities

Total liabilities increased by 3% to Rs. 132.2 Cr in FY2024 from Rs. 128.3 Cr in FY2023, primarily due to decrease in non-current lease liabilities and paired with increased trade payables.

Consolidated Profit and Loss Statement

(in INR Cr)

Particulars	FY24	FY23	YoY Change
Revenue from Operations	379.4	281.5	34.7%
Other Income	38.2	34.3	11.4%
Total Income	417.6	315.8	32.2%
Expenses	240.9	176.2	36.7%
EBITDA	156.2	117.9	32.5%
EBITDA % on Operating Income (%)	41.2%	41.9%	-62bps
Profit Before Tax (PBT)	175.1	139.2	25.8%
PBT % on Total Income (%)	46.2%	49.5%	-329bps
Profit After Tax	134.4	107.5	25.0%
PAT % on Total Income (%)	35.4%	38.2%	-276bps
Contribution Margin (%)	74.9%	78.0%	-360bps

MapmyIndia continues its stellar financial growth, recording Total Income growth as 32.2% and growth of revenue from operations as 34.7% on a YoY basis. EBITDA grew by 32.5% on a YoY basis, continuing to display industry leading margins. Your company was able to maintain EBITDA margin within the guided range of 40%+. Your company registered a PAT margin of 35.4%.

Revenue from Operations

Revenue from Operations increased from Rs. 281.5 Cr in FY23 to Rs. 379.4 Cr in FY24, up 34.7% YoY primarily driven by increased volumes and scaling up of operations to meet growing demand.

Expenses

Our total expenses increased from Rs. 176.2 Cr to Rs. 240.9 Cr in FY24, up 36.7% YoY.

Particulars	FY24	FY23	% Change
Material related cost	63.5	48.2	32.0%
Employee benefit expense	74.6	66.2	12.6%
Finance cost	2.9	2.8	5.0%
Depreciation and amortization expense	14.8	9.9	49.5%
Other expenses	85.1	49.2	73.0%
Total expenses	240.9	176.2	36.7%

Material related costs

Material related costs increased from Rs. 48.2 Cr to Rs. 63.5 Cr in FY24, up 32% YoY primarily driven by larger demand for IoT-led hardware and devices necessitating large purchase of essential materials.

Employee benefit expense

Employee Benefit Expenses increased from Rs. 66.2 Cr to Rs. 74.6 Cr in FY24, up 12.6% YoY primarily driven by onboarding of talent and standard price hikes through the year.

Finance cost

Finance cost increased from Rs. 2.8 Cr to Rs. 2.9 Cr in FY24, up 5% YoY primarily driven by marginal increase in long-term borrowings.

Depreciation and amortization expense

Depreciation and amortization expense increased from Rs. 9.9 Cr to Rs. 14.8 Cr in FY24, up 49.5% YoY primarily driven by standard yearly increase and increased demand for IoT powered hardware devices.

Other expenses

Other expenses increased from Rs. 49.2 Cr in FY23 to Rs. 85.1 Cr in FY24, up 73% YoY primarily driven by higher technical and field survey expenses as well as travel and communication expenses. The increase in technical and field survey expenses is due to the strategic decision to engage third-party services instead of expanding in-house permanent staff, as well as to obtain specialised technical assistance and expertise. The increase in traveling expenses is due to expanded sphere of operations geographically, while increase in communication expenses was driven by higher cloud hosting expenses as more data and services move to the cloud.

Key Financial Ratios

Particulars	FY24	FY23	Change
Revenue growth (%)	34.7%	40.5%	(5.8%)
EBITDA margin (%)	41.2%	41.9%	(1.7%)
PAT margin (%)	32.2%	34.1%	(5.6%)
Return on Equity (%)	22.4%	21.8%	(2.8%)
Operating RoCE (excluding cash) (%)	105.2%	121.6%	(15.6%)
Current Ratio (times)	3.6x	3.9x	0.3x
Receivable days	79	66	13 days
Inventory days	56	87	(31) days
Payables days	47	39	8 days
R&D/Sales (%)	4.5%	4.1%	0.4%

• Re venue & margins: The financial metrics FY24 highlight continued growth, exceptional performance and robust financial health, even with minor reductions compared to FY23. Our EBITDA margin remains strong at 41.20%, reflecting our sustained operational efficiency. Despite a slight decline, our PAT margin stands at a commendable 32.2%, showcasing effective cost management and high profitability.

• Return ratios: Our Return on Equity increased to 22.4%, up by 2.8%, underscoring our ability to deliver substantial returns to shareholders. While the Operating RoCE (excluding cash) saw a reduction to

105.20%, it remains significantly high, emphasizing our strong operational performance.

• Working capital: Our Current Ratio, at 3.6 times, illustrates our solid liquidity and ability to meet short-term obligations wiThease. Receivables Days have shown a manageable increase from 66 in FY23 to 79 in FY24, reflecting our growing customer base and sales volume. However, that is partly neutralised by reduction in Inventory Days from 87 to 56, showcasing our improved inventory turnover and effective stock management. Additionally, Payables Days have increased slightly from 40 to 47, demonstrating our strategic approach to extending payment terms, thereby optimizing cash flow.

• R&D: Our R&D expenses predominantly encompass the development of advanced software products and platforms, including the development of new modules, features and capabilities for Mappls Consumer App, Mappls Auto NCASE, Mappls Cloud Maps APIs and SDK, and Mappls Pro. etc. In the fiscal year 2023-24, the company invested Rs 10.86 crores in these initiatives. Additionally, the company allocated Rs 6.1 crores towards the creation of a newer Map database for additional use cases.

Treasury Management

Investment Management Committee

The surplus fund of C.E. Info Systems Ltd. is professionally managed by experienced professionals who are specialized in their respective fields across fixed income, research, alternates & risk management. The Committee comprises of 6 members. Namely Mr. Rakesh Verma Co-Founder, Chairman & Managing Director, Ms. Rakhi Prasad, Non-Executive Director, Mr. Anuj Jain, CFO and members from the Investment Advisory firm, namely Nuvama Wealth Management Ltd. They meet every fortnight to discuss market conditions, events and economic forecasts and provide their inputs on optimal portfolio allocations across asset classes with various maturity buckets.

Market Update for FY 2023-24

In the financial year 2023-24, the Indian debt market saw several noteworthy trends and developments: The government continued its focus on borrowing through the issuance of G-Secs to fund its fiscal deficit. The RBI maintained its accommodative stance, which influenced yields on government bonds. The Indian 10 Year Benchmark hovered in the range of 6.96% to 7.39% with an average yield of 7.16%. The corporate bond market also witnessed steady growth, driven by both public and private sector entities raising funds for expansion and working capital requirements. The increased participation of retail investors in corporate bond investments was notable, aided by important regulatory measures to deepen the market. Few Regulatory reforms like the introduction of electronic trading platforms and simplification of issuance norms contributed to a more vibrant marketplace. FIIs continued to show interest in Indian debt instruments, attracted by relatively higher yields compared to developed markets. However, the ongoing Russia-Ukraine war as well as the war in the middle east caused significant volatility in commodity prices and global inflationary expectations thereby causing fluctuations in global risk appetite and currency movements influencing investment decisions and capital flows. Despite the global challenges, resilience of the Indian economy lent much needed stability to domestic capital markets. India managed to contain domestic inflation, increase bank credit off take, improve industrial production and increase corporate investments.

The debt market played a crucial role in financing infrastructure projects, supported by initiatives such as infrastructure investment trusts (InvITs) and the issuance of tax-free bonds. This sector remained a key focus area for government expenditure and private investment. Despite progress, challenges such as liquidity constraints in certain segments, credit risk concerns, and regulatory compliance burdens persisted. Efforts to address these challenges through reforms and market development initiatives remained ongoing.

Overall, the Indian debt market in FY 2023-24 reflected a mix of stability, growth, and ongoing reforms aimed at deepening and broadening the market to meet the financing needs of the economy.

Strategies followed by C.E. Info Systems Ltd.

In such a volatile scenario we acted proactively by adding new long-term instrument Like Invit to our fixed income portfolio. We started the year with a portfolio of Rs. 399 Crs. Initially we invested in money market instruments like liquid mutual funds, Arbitrage Fund, and short-term bonds with less than one year maturity. Later, we added duration through some new issuers with high credit quality and good spread over similar Rating like Oriental Nagpur, Pimpri Chinchwad, Cholamandalam, HDFC & its subsidiary. During the year we did Rs. 45 Cr of short-term bond investment, which matured at 8.86%. Total Investment in Invits with an average Investment horizon of 5-6 years is Rs. 22.55 Cr at YTM of 9.62%. Short Term, Medium Term and Long-term Bonds added in the portfolio are Rs. 29 Cr at 9.31%, Rs. 13 Cr at 8.62% & Rs. 65 Cr at 8.37% respectively. From the total Invested portfolio of Rs. 462.42 Cr we were able to generate an income of Rs. 36.29 Cr which comprises of the following instruments.

Instrument Type	% Allocation
Fixed Deposit	19%
Bond Portfolio	39%
SDL Index Funds	29%
Arbitrage Fund	5%
Invit	5%
VDF/AIF/ Others	3%

More than 90% of the portfolio is invested in AA and above rating.

Credit Rating	% Allocation
Sovereign	29%
AAA	36%
AA+	20%
AA	6%
A+	1%
Arbitrage	5%
Others	3%

In the last FY the strategy of investing close to 30% of the portfolio in SDL index fund had helped us generate steady income with tax advantage.

Overall, we consider our Treasury Fund to be an indispensable element of our financial strategy, and we remain steadfast in our commitment to managing it responsibly and transparently. We will continue to keep you updated on the treasurys progress in future.