Why CE Info Systems Share Price is Falling

We rely on Google Maps for almost every journey. It helps us find the fastest routes, avoid traffic, and discover new places. From commuting to unknown destinations to planning road trips, it has become an essential tool. Most of us can't imagine traveling without it.

But did you know that India has its own company offering similar services?

CE Info Systems, popularly known as MapmyIndia, provides digital mapping and navigation solutions. It offers detailed maps, navigation software, and geospatial services tailored for India.

The company also caters to businesses with solutions for logistics, telematics, and location-based analytics. It is considered a leader in India's digital mapping sector.

Recently, the share price of CE Info Systems tumbled after it announced its quarterly results. It is down 21.9% in the last month. Let's take a closer look at the company's quarterly performance to understand why its share price has been falling over the past month.

Weak Quarterly Results

CE Info Systems, operating under the brand MapmyIndia, reported year-on-year (YoY) growth of 13.8% in its revenue from operations for Q2 FY25.

Revenue increased to Rs 1 billion (bn) compared to Rs 0.9 bn in Q2 FY24. The growth is attributed to higher demand in automotive and mobility solutions. However, competitive pressures in the mapping sector kept the growth moderate.

Total income grew by 14.4% YoY, reaching Rs 1.1 bn from Rs 1 bn in the previous year. This rise was supported by an increase in service offerings but was slightly offset by rising operating costs.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell to Rs 0.4 bn in Q2 FY25, marking a YoY decline of 7.5% from Q2 FY24. The EBITDA margin dropped to 36.1% from 44.5%. This drop is due to the company's increased investments in consumer products and expansion strategies.

Profit after tax (PAT) decreased by 8.3% YoY, dropping to Rs 304 million (m) from Rs 331 m. The PAT margin reduced to 26.7% from 33.4%, driven by higher operational expenses and increased R&D spending for future growth.

Despite positive revenue growth, the decline in profitability metrics led to a negative investor sentiment. These results have contributed to the fall in CE Info Systems share price after the quarterly earnings announcement.

Apart from declining Q2 results, the company is also under investors' spotlight as it entered into a joint venture Hyundai AutoEver.

Joint Venture with Hyundai AutoEver

On 8 November 2024, the Board of CE Info Systems has approved the creation of a joint venture (JV) in Indonesia. The JV will be established with Hyundai AutoEver, a subsidiary of Hyundai Motor Company.

It will operate under the name PT Terra Link Technologies. The total initial capital for the JV is set at US $ 10 m. CE Info Systems will invest US $4 m to acquire a 40% stake in it.

This partnership could open new opportunities for CE Info Systems.

It allows the company to expand its footprint in Southeast Asia. The JV aims to provide mapping and geospatial solutions to automotive OEMs and other businesses in the region.

By collaborating with Hyundai AutoEver, CE Info Systems gains access to advanced technologies and a wider customer base.

This partnership is also expected to enhance revenue streams in the coming years. The venture is likely to boost the company's global presence and strengthen its position in the mapping industry.

What Next?

CE Info Systems is focused on achieving its Rs 10 bn revenue target by FY28. The company plans to scale its IoT business tenfold, leveraging its leadership in vehicle digitisation across India. This involves expanding its hardware-backed SaaS model to cater to the growing demand for GPS and IoT-enabled services.

International expansion is also a priority. Through its joint venture with Hyundai AutoEver, the company aims to penetrate Southeast Asia first, with plans to expand into the Middle East and Africa. This venture is expected to generate multimillion-dollar revenues starting FY26.

CE Info Systems is also targeting 100 m downloads for its Mappls App, a major step to solidify its consumer base. This growth is expected to create new revenue opportunities, including in-app advertising and premium services, further diversifying its income streams.

The company is investing in emerging technologies, such as drones and advanced geospatial solutions, to meet future market demands. These innovations are expected to open additional business avenues, especially in corporate and government sectors.

While profitability is currently impacted by heavy investments, these strategies aim to secure long-term growth, strengthen global competitiveness, and position CE Info Systems as a leader in digital mapping and IoT solutions.

How CE Info Systems Share Price has Performed Recently

In the past five days, CE Info Systems share price has tumbled 6.3%. In the last month, it has slipped 21.9%.

The stock price has tumbled 14.7% in the 2024. Additionally, it has slipped 26.1% in the last year.

The stock touched its 52-week high of Rs 2,745.1 on 21 June 2024 and a 52-week low of Rs 1,601.6 on 14 March 2024.

About CE Info Systems

C E Info Systems was incorporated on 17 February 1995. The company is 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).

It is India's leading provider of advanced digital maps, geospatial software, and location-based IoT technologies.

To know more about the company checkout CE Info Systems factsheet and quarterly results.

For a sector overview, read our software sector report.

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