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Affle India Q2 Results Review - Encouraging Expansions In Margins; Outlook Remains Healthy: Axis Securities

Backed by robust RoI-driven CPCU strategy, mgmt is confident of gaining margin profile with strong volume growth moving forward.

<div class="paragraphs"><p>Geolocated Ads for Apps by Affle India's app. (Source: Company website)</p></div>
Geolocated Ads for Apps by Affle India's app. (Source: Company website)

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Axis Securities Report

Affle India Ltd. reported strong growth backed by robust device addition and healthy international business. The company's Q2 FY23 revenue stood at Rs 355 crore, up 2% QoQ and 29.1% YoY, aided by robust device addition and strong cost-per-converted user business.

Affle India’s operating margins improved by 50 bps QoQ to 20.3% (in line with the management expectations) due to lower inventory and data costs.

Backed by the company's robust return on investment-driven CPCU strategy, the management is confident of gaining the margin profile with strong volume growth moving forward.

Affle India recorded a net Income of Rs 59 crore, reporting a healthy growth of 6.2% QoQ and 39.6% YoY.

The conversion rate continued to remain robust with the converted users for Q2 FY23 at 65 million, registering a strong volume growth of 4.7% QoQ. Average CPCU also remained strong at Rs 51/user in Q2 FY23.

Click on the attachment to read the full report:

Axis Securities Affle Q2FY23 Result Update.pdf

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