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Route Mobile Q3 Results Review - Strong Revenue Growth But Cashflow Is A Concern: Centrum Broking

Route Mobile continued to deliver strong revenue growth with revenues of Rs 9,857 million.

<div class="paragraphs"><p>(Photo: Luis Villasmil/ Unsplash)</p></div>
(Photo: Luis Villasmil/ Unsplash)

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Centrum Broking Report

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.

Click on the attachment to read the full report:

Centrum Route Mobile - Q3FY23 Result Update.pdf

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