Route Mobile Q3 results review, Centrum Broking

Route Mobile Ltd. continued to deliver strong revenue growth with revenues of Rs 9,857 million (up 16.5% QoQ, up 75.2% YoY), significantly higher than our/consensus estimates. Revenue per transaction increased to Rs 0.365/transaction in Q3 FY23 (Q2 FY23: 0.313).

Adjusted Ebitda margins were 13.0% which were slightly better than estimated. However, Route Mobile’s management warned of lower-than-expected operating cash flow generation in Q3 and Q4 – and is unlikely to reach the 50-75% Ebitda-to-operating cash flow generation range for FY23 guided previously.

We largely maintain our revenue/profitability estimates for FY24E/25E. Bloomberg