Route Mobile hits new high as FPIs increase stake; zooms 100% since listing

Shares of Route Mobile hit a new high of Rs 1,304 apiece, up 5 per cent, on the BSE on Wednessay supported by heavy volume. The stock was quoting at its highest level since its listing at the bourses and has doubled from level of Rs 651 hit on September 21, 2020.

In the past six trading days, Route Mobile has outperformed the market by surging 16 per cent after the shareholding pattern revealed that foreign portfolio investors (FPIs) have increased their stake in the company by 540 basis points (bps) during October-December quarter (Q3FY1). FPIs held 15.74 per cent stake in Route Mobile as on December 31, 2020, as against 10.34 per cent at the end of September 2020 quarter, according to the data filed by the company. They held 4.32 per cent stake in Route Mobile on listing date.

Mutual funds, however, reduced their stake in Route Mobile to 4.48 per cent from 8.44 per cent in the previous quarter.

Route Mobile had made a stellar debut at the bourses with a gain of 86 per cent against its issue price of Rs 350 per share. With today’s gain, the stock has zoomed 272 per cent as against its issue price on the BSE.

The company is a cloud communications platform service provider, catering to enterprises, over-the-top (OTT) players, and mobile network operators (MNO). Route Mobile’s portfolio comprises solutions in messaging, voice, email, SMS filtering, analytics, and monetization.

Meanwhile, the board of directors of Route Mobile is scheduled to meet on Thursday, January 28, to consider and approve unaudited financial results for the quarter ended December 31, 2020.

For July-September quarter (Q2FY21), the company’s consolidated net profit more-than-doubled to Rs 32.7 crore on the back of healthy income. The company had posted profit of Rs 13 crore in Q2FY20. It’s 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.

At 01:29 pm, Route Mobile was trading 5 per cent higher at Rs 1,299 on the BSE, as compared to a 1.3 per cent decline in the S&P BSE Sensex. Trading volumes on the counter more-than-doubled with a combined 840,000 equity shares having changed hands on the NSE and BSE till the time of writing of this report.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link