Our Firewall Platform will assist BSNL in identifying & protecting revenue leakage via grey routes: Rajdipkumar Gupta, Route Mobile

Rajdipkumar Gupta, Managing Director and Group Chief Executive Officer, Route Mobile Limited, talks about the performance of September quarter and future outlook, firewall contract with BSNL, acquisition of TeleDNA and client additions among others, during a candid chat with Swati Khandelwal, Zee Business. Edited Excerpts:

Q: Back-to-back brilliant performance, may it be about the listing or the quarter performance. What would you suggest people who missed your shares in IPO and do you think investors should look forward to your shares?

A: First of all, I would like to say that the guidance that we provided during the launch of our IPO, we are going to stick with that. The company’s growth will continue to grow on a year-on-year basis because the digital acceleration and digital penetration will increase in the coming days. I will not provide any guidance, but people are following and seeing it in the market, the way the digital platform is being adopted. So, I think, the future of our Route Mobile is bright.

Q: Let’s talk about the results, the revenue is almost 80% up, EBITDA has grown by 113%, the margin is up to 13.5% from 11.1% and PAT is 152% up. What led to this growth and what were the key reasons for the quarter in terms of topline and bottom line?

A: For the last one-and-a-half to two years, our entire focus was on enterprise customers. And, enterprise customer is a sticky business and their contribution as a platform usage is quite large. For the last one-and-a-half year, we were focusing on large enterprise customers as we thought the larger the customer is, the larger will be the usage of the platform. And in the same way, the hard work that we did in the last 2-3 years is visible and in the coming days, this will continue.

Q: How many new clients have you added and in which bracket in Q2FY21? Going forward, what is your outlook on client additions?

A: Recently, we have signed a few contracts, like we have won the firewall contract with BSNL. And, I think, because of this the revenue leakage option in BSNL will be controlled completely and it will have multiple options from which BSNL can generate revenue. Along with that, we have onboard some such customers, whose potential is very huge, which may turn into a 5-10 million dollars year-on-year. So, I think, 3-4 new customer additions are very bright and I feel that in the next few quarters their contribution to our revenue will be very high.

Q: Can you provide the numbers for example the incremental revenue that is expected from the BSNL deal? And recently in July, you also acquired TeleDNA, telecom operator related business. What's the synergy value here and how many more acquisitions are in pipeline for the rest of FY21?

A: When it comes to numbers, we will be able to provide monetization guidance when the first month of monetization is known after the implementation of our firewall. But it seems that the potential is quite high because several grey routes were being used on the BSNL network, which was leading to high revenue leakages. I feel, their revenue will go up after the implementation of the firewall but I can’t provide any guidance, now, but post-implementation, I will be able to speak about it. As far as TeleDNA acquisition is concerned, the company has acquired TeleDNA to provide more products offering to the operator, like the complete firewall contract of BSNL will be implemented by TeleDNA and they have a complete firewall solution. So, indirectly, a synergy sits completely in which as of today if the entire product portfolio of 365 and TeleDNA is combined then Route Mobile can now offer an end-to-end solution to the operator.

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At the same time, I would also like to share with you that 15% of the total revenue of Route Mobile comes from the operators and we provide our solutions to 10-12 global operators. SO, we expect that in the coming days, our solutions will be used by the operators of the emerging countries and the combination of TeleDNA and 365 will play an important role for us.