Route Mobile's Q4 net profit slips by 8.5%

Route Mobile's Q4: Route Mobile, a prominent player in enterprise communication, reported a decrease of 8.5 per cent in consolidated net profit for the fourth quarter ending March 31, 2024. According to BSE filings, the company's net profit dipped to Rs 95.16 crore compared to Rs 104.05 crore in the corresponding period last year. Despite this, revenue from operations remained relatively stable at Rs 1,017.03 crore, nearly on par with the Rs 1,008.66 crore recorded a year ago.

However, Route Mobile's financial year 2023–24 showcased positive growth trends. The company witnessed a notable uptick of about 17 per cent in annual net profit, reaching Rs 388.84 crore compared to Rs 333.11 crore in the previous fiscal year. Similarly, annual revenue experienced a significant surge, climbing to Rs 4,023.29 crore from Rs 3,569.23 crore.

In a move to bolster its financial capabilities, Route Mobile's board approved seeking financial assistance of up to Rs 100 crore through the SBLC (Standby Letter of Credit) from ICICI Bank. This assistance, secured against a fixed deposit of up to Rs 105 crore, aims to enable ICICI Bank IBU Gift City to extend bank guarantee facilities to Route Mobile (UK) Ltd.

Despite facing a dip in quarterly net profit, the company has shown resilience, maintaining steady revenue streams. Moreover, its proactive approach to securing financial assistance underscores a commitment to fortifying operations and fostering growth opportunities.

(with PTI inputs)