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Route Mobile shares rise after six sessions, here's why

Route Mobile shares rise after six sessions, here's why

Stock of Route Mobile touched an intraday high of Rs 1246.7, rising 4.98% against the previous close of Rs 1187.55 on BSE. Market cap of the firm rose to Rs 7,642 crore on BSE.

Route Mobile shares have lost 35.12% in one year and gained 0.2% since the beginning of this year. Route Mobile shares have lost 35.12% in one year and gained 0.2% since the beginning of this year.

Shares of Route Mobile rose 5% today after company said it has won a two-year contract from a leading mobile network operator for international A2P messaging in Sri Lanka. Stock of Route Mobile touched an intraday high of Rs 1246.7, rising 4.98% against the previous close of Rs 1187.55 on BSE. Route Mobile stock has gained after 6 days of consecutive fall. Earlier, the stock opened higher at Rs 1,205.80.  Route Mobile shares are trading higher than the 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.

The shares have lost 35.12% in one year and gained 0.2% since the beginning of this year. Total 4827 shares of the firm changed hands amounting to a turnover of Rs 59.45 lakh on BSE.

Market cap of the firm rose to Rs 7,642 crore on BSE.

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The firm, which is a communications platform has signed an exclusive SMS firewall solution and connectivity service agreement with a leading Mobile Network Operator ("MNO") in Sri Lanka to provide an end-to-end A2P monetisation suite for all international A2P SMS' terminating on its network.

Under the terms of the agreement, Route Mobile will serve as the exclusive partner of the MNO for a duration of two years, as the company looks to strengthen its market position and increase its presence in Sri Lanka.

"We are honored to be selected as an exclusive partner by the premier MNO in Sri Lanka and we anticipate great success as we collaborate to strengthen our market presence. Our Artificial Intelligence ("AI") /Machine Learning ("ML") based A2P SMS firewall solutions are leveraged by leading MNOs across the globe, to detect and block leakages due to grey route traffic terminating on their networks. Further, our CPaaS platform drives significant international A2P SMS volumes from leading global enterprises onto the networks of our MNO clients. This exclusive partnership with the leading Sri Lankan MNO has yet again validated our robust firewall solution coupled with our reach with large global enterprises. We are confident that our solutions will minimize revenue leakages for our newly on-boarded partner MNO." said Rajdipkumar Gupta, Managing Director and Group CEO, Route Mobile.

ALSO READ: Route Mobile shares down 29% from 52-week high; recovery on cards?

Net profit in Q2 rose 74.53% to Rs 73.60 crore against profit after tax of Rs 42.17 crore in the corresponding period of previous fiscal.

Sales climbed 94.15% to Rs 845.84 crore in Q2 against Rs 436.57 crore in the corresponding quarter of the previous fiscal. Operating profit excluding other income zoomed 83.82% to Rs 102.94 crore in the September quarter against Rs 56 crore in the corresponding quarter of the previous fiscal.

A cloud communications platform service provider, Route Mobile's clientele includes enterprises, over-the-top (OTT) players, and mobile network operators. Its portfolio includes solutions in messaging, voice, email, SMS filtering, analytics, and monetisation, with client base across segments such as social media companies, banks, and financial institutions, e-commerce entities, and travel aggregators.

Published on: Jan 12, 2023, 12:06 PM IST
Posted by: Aseem Thapliyal, Jan 12, 2023, 11:57 AM IST