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Route Mobile freezes at 10% upper circuit; zooms 38% in 1 week post Q2 nos

With the past week's rally, the stock is currently trading 213 per cent higher as against its issue price of Rs 350 per share

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Route Mobile Limited | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

markets, stock market, sensex, nifty, shares, growth, profit, economy, gain
The company is a leading cloud communication platform service provider to enterprises, over-the-top players and mobile network operators

Shares of Route Mobile were locked in the 10 per cent upper circuit band at Rs 1,095.85 on the BSE on Monday, surging 38 per cent in the past one week, after the company reported a strong set of July-September quarter (Q2FY21) numbers.

Till 02:58 pm, a combined 2.2 million equity shares had changed hands and there were pending buy orders for around 160,000 shares on the NSE and BSE, exchange data show. In comparison, the S&P BSE Sensex was up 0.69 per cent at 39,887 points.

The company is a leading cloud communication platform service provider to enterprises, over-the-top players and mobile network operators. The stock was trading at its highest level since it got listed on September 21, 2020. With the past week's rally, the stock is currently trading 213 per cent higher as against its issue price of Rs 350 per share. Since listing, it has outperformed the market, by gaining 68 per cent compared to 5 per cent rise in the S&P BSE Sensex.

Route Mobile's consolidated net profit more-than-doubled to Rs 32.7 crore in Q2FY21 on the back of healthy income. The company had posted profit of Rs 13 crore in Q2FY20. Its revenue from operations rose 77 per cent year-on-year (YoY) at Rs 349 crore as against Rs 197 crore in the-year ago quarter. Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin expanded 230 basis points to 13.3 per cent in Q2FY21 from 11.0 per cent in Q2FY20.

According to the management, Q2FY21 was another quarter of strong performance, backed by better operating leverage, despite the trying circumstances. The pandemic has accelerated CPaaS adoption amongst enterprises, and Route Mobile continues to enable its customers in their digital communication journey, it said.

As per Gartner estimates, by 2023, 90 per cent of global enterprises will leverage AP/ enabled CPaaS offerings to enhance their digital competitiveness, up from 20 per cent in 2020. The management said the company is optimally positioned to be at the forefront and drive this transformation.

Meanwhile, foreign portfolio investors (FPIs) such as Goldman Sachs and Kuwait Investment Authority acquired shares worth of Rs 210 crore of Route Mobile post listings on September 22.

According September 2020, shareholding pattern filed by Route Mobile, total FPIs holding in the company increased to 10.34 per cent from 4.32 per cent at the time of listing. Individual shareholders had booked the profit post listing, as their stake in the company declined to 6.46 per cent from 14.31 per cent, data shows.

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First Published: Mon, November 02 2020. 15:04 IST
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