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Homegrown navigation firm CE Info Systems Ltd, the owner of MapmyIndia, on Friday (November 8) reported an 8.2% year-on-year (YoY) dip in net profit at ₹30.3 crore for the second quarter that ended September 30, 2024.
In the corresponding quarter of the previous fiscal, CE Info Systems posted a net profit of ₹33 crore, the company said in a regulatory filing. The company's revenue from operations increased 14% to ₹103.7 crore as against ₹91 crore in the corresponding period of the preceding fiscal.
At the operating level, EBITDA fell 7.8% to ₹37.6 crore in the second quarter of this fiscal over ₹40.8 crore in the corresponding period in the previous fiscal.
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EBITDA margin stood at 36.3% in the reporting quarter as compared to 44.8% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.
Further, CE Info Systems announced the approval for establishing a joint venture (JV) company, PT Terra Link Technologies, in Indonesia in partnership with Hyundai AutoEver, a wholly-owned subsidiary of Hyundai Motor Company.
The JV will be launched with an initial capital investment of $10 million, with CE Info Systems contributing $4 million for a 40% stake, while Hyundai AutoEver will hold the remaining 60% by investing $6 million.
This JV aims to support business expansion in the Southeast Asia region, with expected multimillion-dollar revenue potential over the next five years, anticipated to commence from FY26. Under the agreement, C.E. Info Systems will acquire 65,708 common shares in the JV, while Hyundai AutoEver will subscribe to 98,562 common shares.
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The board composition will include five directors, with CE Info Systems entitled to appoint two directors and Hyundai AutoEver three. CE Info Systems has nominated its CEO, Rohan Verma, and Jin Ho Kim, President of the Asia Pacific division, as its representatives on the JV board.
Additionally, a Board of Commissioners will oversee governance, with each party appointing one commissioner; Anuj Kumar Jain, CFO of CE Info Systems, will represent the company in this capacity. To maintain ownership control, the agreement includes provisions that restrict either party from transferring its equity without prior written consent from the other.
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The JV is expected to generate revenue both from services provided to its customers in Southeast Asia and from the JV’s profit, benefitting CE Info Systems’ existing clientele as well. Additionally, CE Info Systems has approved a further investment of $0.5 million in its wholly-owned US subsidiary, CE Inc., to be disbursed in one or more tranches.
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The results came after the close of the market hours. Shares of CE Info Systems Ltd ended at ₹2,065.00, down by ₹5.80, or 0.28% on the BSE.
