Affle (India) Ltd Company Details
Affle (India) Ltd is a global technology company with a proprietary consumer intelligence platform that delivers consumer engagement, acquisitions and transactions through relevant mobile advertising. The platform aims to enhance returns on marketing investment through contextual mobile ads and also by reducing digital ad fraud. Affle powers unique and integrated consumer journeys for marketers to drive high ROI, measurable outcome-led advertising across global connected devices.The company has been a long-trusted partner for many of the worldโs biggest B2C brands across the industry verticals. Affle is enabling innovative, on-the-go and digitally empowered ways for the advertisers to deeply engage with consumers. The company primarily operates in emerging markets like India, South East Asia, Middle East & Africa and LATAM. The company has two business segments : โข Consumer platform โ The platform provides services such as new consumer conversions (acquisitions, engagements and transactions) through relevant mobile advertising, retargeting existing consumers to complete transactions for e-commerce companies through relevant mobile advertising and an online to offline (โO2Oโ) platform that converts online consumer engagement into in-store walk-ins. The consumer platform is used by business to consumer (โB2Cโ) companies across industries, including e-commerce, fin-tech, telecom, media, retail and FMCG companies, both directly and indirectly through their advertising agencies. Some of the customers includes Apollo 24|7, Motilal Oswal, Swiggy, Zepto, Angel One, etc. The company primarily earns revenues from its consumer platform on a Cost Per Converted User (CPCU) basis (contributes ~93% of consumer platform revenue), which comprises user conversions based on consumer acquisition and transaction models. It also earns revenue through awareness and engagement type advertising (Non-CPCU), which comprises cost per thousand impressions (CPM), cost per view (CPV) and cost per click (CPC) models.
Enterprise platform โ This platform offers an integrated approach to building audience centric mobile assets and comprise app development for third parties, enabling offline to online commerce for offline businesses with e-commerce aspirations, enterprise grade data analytics for online & offline companies and cloud services . While most of the industry is largely dominated by companies operating on clicks, views and impressions, Affle, with its differentiated business model drives CPCU based conversions for advertisers primarily focused on emerging markets and across the industry verticals. Most of these conversions are deeply linked to the deep funnel matrix which are always post click and post app install CASE STUDY events done by the consumers on their smart devices.
Affle (India) Ltd is a global technology company with a proprietary consumer intelligence platform that delivers consumer engagement, acquisitions and transactions through relevant mobile advertising. The platform aims to enhance returns on marketing investment through contextual mobile ads and also by reducing digital ad fraud. Affle powers unique and integrated consumer journeys for marketers to drive high ROI, measurable outcome-led advertising across global connected devices.The company has been a long-trusted partner for many of the worldโs biggest B2C brands across the industry verticals. Affle is enabling innovative, on-the-go and digitally empowered ways for the advertisers to deeply engage with consumers. The company primarily operates in emerging markets like India, South East Asia, Middle East & Africa and LATAM. The company has two business segments : โข Consumer platform โ The platform provides services such as new consumer conversions (acquisitions, engagements and transactions) through relevant mobile advertising, retargeting existing consumers to complete transactions for e-commerce companies through relevant mobile advertising and an online to offline (โO2Oโ) platform that converts online consumer engagement into in-store walk-ins. The consumer platform is used by business to consumer (โB2Cโ) companies across industries, including e-commerce, fin-tech, telecom, media, retail and FMCG companies, both directly and indirectly through their advertising agencies. Some of the customers includes Apollo 24|7, Motilal Oswal, Swiggy, Zepto, Angel One, etc. The company primarily earns revenues from its consumer platform on a Cost Per Converted User (CPCU) basis (contributes ~93% of consumer platform revenue), which comprises user conversions based on consumer acquisition and transaction models. It also earns revenue through awareness and engagement type advertising (Non-CPCU), which comprises cost per thousand impressions (CPM), cost per view (CPV) and cost per click (CPC) models.
Enterprise platform โ This platform offers an integrated approach to building audience centric mobile assets and comprise app development for third parties, enabling offline to online commerce for offline businesses with e-commerce aspirations, enterprise grade data analytics for online & offline companies and cloud services . While most of the industry is largely dominated by companies operating on clicks, views and impressions, Affle, with its differentiated business model drives CPCU based conversions for advertisers primarily focused on emerging markets and across the industry verticals. Most of these conversions are deeply linked to the deep funnel matrix which are always post click and post app install CASE STUDY events done by the consumers on their smart devices.
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#SALES #GROWTH 5 Year CAGR 49.2%
In FY24, the net sales witnessed a growth of 28.5% YoY and stood at โน1,843 cr. This was on account of growth in India & Emerging Market and on account of acquisition of YouAppi. Excluding the impact of acquisition, the revenue grew by 15%. The CPCU business witnessed strong momentum resulting in a significant increase in converted users by 22% YoY to 31.3 cr with CPCU rate increased by 10% to โน56.2. The growth in the CPCU rates was on account of companyโs focus towards premium consumers. During Q1 FY25, the net sales witnessed a growth of 27.8% YoY and stood at โน520 cr. This was on account of growth across all the geographies. Excluding the impact of acquisition, the revenue grew by 20%. The CPCU business witnessed strong momentum resulting in a significant increase in converted users by 32% YoY to 9.1 cr with CPCU rate increased by 4% to โน57.
In FY24, the net sales witnessed a growth of 28.5% YoY and stood at โน1,843 cr. This was on account of growth in India & Emerging Market and on account of acquisition of YouAppi. Excluding the impact of acquisition, the revenue grew by 15%. The CPCU business witnessed strong momentum resulting in a significant increase in converted users by 22% YoY to 31.3 cr with CPCU rate increased by 10% to โน56.2. The growth in the CPCU rates was on account of companyโs focus towards premium consumers. During Q1 FY25, the net sales witnessed a growth of 27.8% YoY and stood at โน520 cr. This was on account of growth across all the geographies. Excluding the impact of acquisition, the revenue grew by 20%. The CPCU business witnessed strong momentum resulting in a significant increase in converted users by 32% YoY to 9.1 cr with CPCU rate increased by 4% to โน57.
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#EBITDA #GROWTH 5 Year CAGR 38.6%
In FY24, the EBITDA stood at โน360 cr, recording a growth of 24.7% YoY. The data & inventory cost (~61% of revenue) and employee costs (~13% of revenue) increased significantly on a YoY basis in line with the revenue growth. They continued to strategically invest in the inventory and data costs as they are calibrating their platform to premium inventory touchpoints. In H2 FY24, the management increased their spending on marketing cost and trade events in the international markets. They would continue to spend in FY25 as well. During Q1 FY25, the EBITDA stood at โน104.5 cr, recording a growth of 33.8% YoY on account of improved operational efficiencies.
In FY24, the EBITDA stood at โน360 cr, recording a growth of 24.7% YoY. The data & inventory cost (~61% of revenue) and employee costs (~13% of revenue) increased significantly on a YoY basis in line with the revenue growth. They continued to strategically invest in the inventory and data costs as they are calibrating their platform to premium inventory touchpoints. In H2 FY24, the management increased their spending on marketing cost and trade events in the international markets. They would continue to spend in FY25 as well. During Q1 FY25, the EBITDA stood at โน104.5 cr, recording a growth of 33.8% YoY on account of improved operational efficiencies.
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#Management #Comments
The management has a vision to develop the market share and build a robust portfolio of services that will help them to get long term sustainable growth. With the Affle 2.0 strategy, the management is focusing on being a leader in the Indian market, verticalization of AI innovations, penetrate vernacular section of India and create an omni-channel connected ecosystem. The recent fund-raising activity will help to build a robust business structure in the future either through organic or inorganic routes. During the quarter, the management appointed four new board of directors to provide accountability and enhance the depth of expertise.
The management has a vision to develop the market share and build a robust portfolio of services that will help them to get long term sustainable growth. With the Affle 2.0 strategy, the management is focusing on being a leader in the Indian market, verticalization of AI innovations, penetrate vernacular section of India and create an omni-channel connected ecosystem. The recent fund-raising activity will help to build a robust business structure in the future either through organic or inorganic routes. During the quarter, the management appointed four new board of directors to provide accountability and enhance the depth of expertise.
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#Company #Potential
The total global digital ad spend is expected to increase at a CAGR of 16% from $381 bn in 2020 to $785 bn by 2025. โข The global average digital ad spend as a percentage of total advertising market is ~63%. โข The total advertisement industry in India is expected to grow at a CAGR of 15% from โน85,769 cr in 2022 to โน1,13,575 cr by 2025. โข The digital ad spends in India as a percentage of total advertising market is ~35% in 2022 which is expected to increase to 42%45% by 2024. This growth is attributed to the consistent improvement in digital infrastructure, governmentโs push to boost the digital economy, growing internet penetration, rise in smartphone adoption, innovation in mobile technologies and increased adoption of digital payments. โข The total digital ad spend in India is expected to grow at a CAGR of 30% from โน29,784 cr in 2022 to โน51,110 cr by 2025. โข E-Commerce & FMCG makes the biggest contribution to the digital media industry. โข Among the digital media advertising format, social media & online video format has been the largest. Online video has seen a strong growth owing to the low-cost smartphones and a high-speed connectivity in India. โข Connected TV (CTV) devices represent a growing advertising opportunity thanks to the expansion of free ad-supported streaming TV (FAST) services and the continued growth of premium online video. However, CTV ownership in India is far behind other markets with only 10% of homes owning a CTV set, due to the growth of adoption and usage of smartphones, which had a 60% penetration of population in 2022 that could increase up to 80% in 2026.
The total global digital ad spend is expected to increase at a CAGR of 16% from $381 bn in 2020 to $785 bn by 2025. โข The global average digital ad spend as a percentage of total advertising market is ~63%. โข The total advertisement industry in India is expected to grow at a CAGR of 15% from โน85,769 cr in 2022 to โน1,13,575 cr by 2025. โข The digital ad spends in India as a percentage of total advertising market is ~35% in 2022 which is expected to increase to 42%45% by 2024. This growth is attributed to the consistent improvement in digital infrastructure, governmentโs push to boost the digital economy, growing internet penetration, rise in smartphone adoption, innovation in mobile technologies and increased adoption of digital payments. โข The total digital ad spend in India is expected to grow at a CAGR of 30% from โน29,784 cr in 2022 to โน51,110 cr by 2025. โข E-Commerce & FMCG makes the biggest contribution to the digital media industry. โข Among the digital media advertising format, social media & online video format has been the largest. Online video has seen a strong growth owing to the low-cost smartphones and a high-speed connectivity in India. โข Connected TV (CTV) devices represent a growing advertising opportunity thanks to the expansion of free ad-supported streaming TV (FAST) services and the continued growth of premium online video. However, CTV ownership in India is far behind other markets with only 10% of homes owning a CTV set, due to the growth of adoption and usage of smartphones, which had a 60% penetration of population in 2022 that could increase up to 80% in 2026.
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#Company #Outlook
Affle 2.0 strategy aims to reach 1,000 crore+ (v/s current 250 crore) connected devices including mobile smart phones, connected TV, smart wearables etc. to enable integrated omni channel online and offline consumer journeys. This strategy would be anchored on: 1) OEM (original equipment manufacturers) partnership โ Affle has integrations with most of the 20 OEMs and operators across ecosystem players like Bobble AI keyboard app, 2) Vernacular โ target users in their preferred language with ability to detect mixed vernacular language affinity (e.g.: Hindi + English) and 3) Verticalization โ deeper integration within consumer internet focused verticals. โข Focus on improving scale: The company has a dominant position in India (the largest market) and is consistently working to grow in scale significantly enhancing the strategic moats by focusing on three key aspects: 1) expanding the scope of the products from just mobile to connected devices, going well beyond mobile and looking at connected devices as a strategic focus, 2) looking at the consumerโs journey as an omni channel platform, integrating it across both online journeys as well as offline journeys and therefore creating new possibilities for the customers, and 3) continue to invest in the 2V strategy of Vernacular and Verticalization to reach the next billion shoppers on connected devices. They also have a selective approach while scaling up the consumer platform. โข The management guided that they would be focusing on broad segment growth and reduce their overdependence on a particular vertical. โข They have realigned their strategy in the developed markets like reorganization of team, focus on lock in's on product & platform for multi year growth, connected TV product with household sync capabilities. These changes is expected to result in some turnaround Q2 FY24 onwards.
Affle 2.0 strategy aims to reach 1,000 crore+ (v/s current 250 crore) connected devices including mobile smart phones, connected TV, smart wearables etc. to enable integrated omni channel online and offline consumer journeys. This strategy would be anchored on: 1) OEM (original equipment manufacturers) partnership โ Affle has integrations with most of the 20 OEMs and operators across ecosystem players like Bobble AI keyboard app, 2) Vernacular โ target users in their preferred language with ability to detect mixed vernacular language affinity (e.g.: Hindi + English) and 3) Verticalization โ deeper integration within consumer internet focused verticals. โข Focus on improving scale: The company has a dominant position in India (the largest market) and is consistently working to grow in scale significantly enhancing the strategic moats by focusing on three key aspects: 1) expanding the scope of the products from just mobile to connected devices, going well beyond mobile and looking at connected devices as a strategic focus, 2) looking at the consumerโs journey as an omni channel platform, integrating it across both online journeys as well as offline journeys and therefore creating new possibilities for the customers, and 3) continue to invest in the 2V strategy of Vernacular and Verticalization to reach the next billion shoppers on connected devices. They also have a selective approach while scaling up the consumer platform. โข The management guided that they would be focusing on broad segment growth and reduce their overdependence on a particular vertical. โข They have realigned their strategy in the developed markets like reorganization of team, focus on lock in's on product & platform for multi year growth, connected TV product with household sync capabilities. These changes is expected to result in some turnaround Q2 FY24 onwards.
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#Future #Plan
Focus on improving the conversions: Affle is consistently focusing on scale, growing the number of conversions, getting higher wallet share and focusing on consumer proposition which would help it to improve the CPCU rates and hence the revenue. For this, the company is investing into synergetic acquisitions as a part of Affle 2.0 strategy. โข Compliance with data-privacy regulations: The company has been abiding to the stringent data-privacy regulations set by Singapore Government and some of the European standards. It is also among the few companies that has been accredited for its entire tech stack by Infocomm Media Development Authority of Singapore (IMDA) under the SG. It also appoints external auditors impact. such as Grant Thompson, Privasec etc for data privacy audits. The company also received Data Protection Trustmark (DPTM) Certification for a period of three years by IMDA, which notably enhances the customers' trust, builds greater strategic moat and fosters growth. โข Integration with Jampp to aid the topline: Jampp has ~50% penetration in the iOS devices. Hence, post the implementation of stringent data privacy rules, it was among the early movers in adopting SKAN (SKAd Network is a privacy centric API operated by Apple which helps measure ad activity on an aggregated level). Using this technology, Jampp drove 41% more efficient conversions in SKAN campaigns v/s Android only, for its client fetch. โข The company's system are designed and geared to process only the appographic, behavioural and intent signals of customers without having any access to a user's personal and financial information. Hence, data protection bill would hopefully not have any โข They have raised funds from Gamnat Pte. Ltd, which is an entity of the Ministry of Finance, Government of Singapore to invest ~โน750 cr in the company. This will strengthen the next 4 years of strategic growth initiatives.
Focus on improving the conversions: Affle is consistently focusing on scale, growing the number of conversions, getting higher wallet share and focusing on consumer proposition which would help it to improve the CPCU rates and hence the revenue. For this, the company is investing into synergetic acquisitions as a part of Affle 2.0 strategy. โข Compliance with data-privacy regulations: The company has been abiding to the stringent data-privacy regulations set by Singapore Government and some of the European standards. It is also among the few companies that has been accredited for its entire tech stack by Infocomm Media Development Authority of Singapore (IMDA) under the SG. It also appoints external auditors impact. such as Grant Thompson, Privasec etc for data privacy audits. The company also received Data Protection Trustmark (DPTM) Certification for a period of three years by IMDA, which notably enhances the customers' trust, builds greater strategic moat and fosters growth. โข Integration with Jampp to aid the topline: Jampp has ~50% penetration in the iOS devices. Hence, post the implementation of stringent data privacy rules, it was among the early movers in adopting SKAN (SKAd Network is a privacy centric API operated by Apple which helps measure ad activity on an aggregated level). Using this technology, Jampp drove 41% more efficient conversions in SKAN campaigns v/s Android only, for its client fetch. โข The company's system are designed and geared to process only the appographic, behavioural and intent signals of customers without having any access to a user's personal and financial information. Hence, data protection bill would hopefully not have any โข They have raised funds from Gamnat Pte. Ltd, which is an entity of the Ministry of Finance, Government of Singapore to invest ~โน750 cr in the company. This will strengthen the next 4 years of strategic growth initiatives.
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Affle (India) Ltd 1350-1550
Expected level 1880
Support 1200
Expected level 1880
Support 1200
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Alpha Ideas 20 20 Meet - 2024 Edition
1. Indostar Capital - Danesh Mistry
2. Hawkins India - Prajesh Maroo
3. NSE India (Unlisted) - Pritesh Vora
4. Cantabil Retail - Anshul Saigal
5. JM Financial - Jatin khemani
6. HIL Limited - Jiten Parmar
7. Greaves Cotton - Tushar Bohra
8. Sunteck Realty - Rushmik Oza
9. KRN Heat Exchanger - Abhisar Jain
10. Shankara Building Products - Abhinav & Raghav Aggarwal
11. Sai Silks Kalamandir - Ashwini Agrawal
12. Welspun Corp - Rakesh Laroia
13. Arvind Smartspaces - Ishmohit Arora
14. India Shelter Finance - Darshan Deora
15. E2E Networks - Sivaramakrishnan R
16. SAREGAMA INDIA - Aashish Upglanawar
17. MOIL - Digant Haria
18. Atlanta Limited - Ankit Kanodia
19. PG Electroplast - Vivek Mashrani
20. HBL Power and Atul Limited - Abhishek Basumallick
1. Indostar Capital - Danesh Mistry
2. Hawkins India - Prajesh Maroo
3. NSE India (Unlisted) - Pritesh Vora
4. Cantabil Retail - Anshul Saigal
5. JM Financial - Jatin khemani
6. HIL Limited - Jiten Parmar
7. Greaves Cotton - Tushar Bohra
8. Sunteck Realty - Rushmik Oza
9. KRN Heat Exchanger - Abhisar Jain
10. Shankara Building Products - Abhinav & Raghav Aggarwal
11. Sai Silks Kalamandir - Ashwini Agrawal
12. Welspun Corp - Rakesh Laroia
13. Arvind Smartspaces - Ishmohit Arora
14. India Shelter Finance - Darshan Deora
15. E2E Networks - Sivaramakrishnan R
16. SAREGAMA INDIA - Aashish Upglanawar
17. MOIL - Digant Haria
18. Atlanta Limited - Ankit Kanodia
19. PG Electroplast - Vivek Mashrani
20. HBL Power and Atul Limited - Abhishek Basumallick
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Maharashtra NDA Win Beneficiary Companies
1. Gala Precision Engineering Ltd
2. CESC Ltd
3. Capacite Infraprojects Ltd
4. PNC Infratech Ltd
5. Ashoka Buildcon Ltd
6. KNR Constructions Ltd
7. CESC Ltd:
8. BIGBLOC Construction Ltd
9. GE Power India Ltd
10. NBCC (India) Ltd:
11. HPL Electric & Power Ltd
12. Ceinsys Tech Ltd
Disclaimer: Please do your own due diligence. This is not buy/sell recommendations
1. Gala Precision Engineering Ltd
2. CESC Ltd
3. Capacite Infraprojects Ltd
4. PNC Infratech Ltd
5. Ashoka Buildcon Ltd
6. KNR Constructions Ltd
7. CESC Ltd:
8. BIGBLOC Construction Ltd
9. GE Power India Ltd
10. NBCC (India) Ltd:
11. HPL Electric & Power Ltd
12. Ceinsys Tech Ltd
Disclaimer: Please do your own due diligence. This is not buy/sell recommendations
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โฑBest in AGRICULTURE SECTOR
a) PI INDUSTRIES
b) DCM Shriram
c) Bharat Rasayan
d) UPL
a) PI INDUSTRIES
b) DCM Shriram
c) Bharat Rasayan
d) UPL
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Siemens Company Details
Siemens is a technology company focused on industry, infrastructure, mobility, and healthcare. Siemens (India) Limited was incorporated in the year 1922 as a private limited company and currently, is the flagship listed company of Siemens AG in India. The company operates in 4 segments: Energy, Smart infrastructure, Digital industries & Mobility and follows a financial year of October-September. Energy segment provides fully integrated products, solutions and services across the energy value chain of oil and gas production, power generation and transmission for various customers. Smart infrastructure portfolio covers systems for low & medium voltage distribution, solutions for smart grids & energy automation and low voltage power supply systems. Digital industries contains portfolio of leading-edge automation, drives and software technologies covering the complete life cycle from product design and production execution to services for discrete and process Industries. Mobility segment is a supplier of solutions for passenger and freight transportation including rail vehicles, rail automation systems, rail electrification systems, road traffic technology and IT solutions. The company is positioned along the electrification value chain โ from power generation, transmission and distribution to smart grid solutions and efficient application of electrical energy. During the year, the companyโs major highlight was securing an order valued at โน26,000 crore to supply 1,200 locomotives for the Indian railways. This has been the largest order in the history company. Also, it had acquired the EV division of Mumbai-based MassTech Controls Private Limited, primarily engaged in design, engineering and manufacturing of a wide range of alternate current chargers.
Siemens is a technology company focused on industry, infrastructure, mobility, and healthcare. Siemens (India) Limited was incorporated in the year 1922 as a private limited company and currently, is the flagship listed company of Siemens AG in India. The company operates in 4 segments: Energy, Smart infrastructure, Digital industries & Mobility and follows a financial year of October-September. Energy segment provides fully integrated products, solutions and services across the energy value chain of oil and gas production, power generation and transmission for various customers. Smart infrastructure portfolio covers systems for low & medium voltage distribution, solutions for smart grids & energy automation and low voltage power supply systems. Digital industries contains portfolio of leading-edge automation, drives and software technologies covering the complete life cycle from product design and production execution to services for discrete and process Industries. Mobility segment is a supplier of solutions for passenger and freight transportation including rail vehicles, rail automation systems, rail electrification systems, road traffic technology and IT solutions. The company is positioned along the electrification value chain โ from power generation, transmission and distribution to smart grid solutions and efficient application of electrical energy. During the year, the companyโs major highlight was securing an order valued at โน26,000 crore to supply 1,200 locomotives for the Indian railways. This has been the largest order in the history company. Also, it had acquired the EV division of Mumbai-based MassTech Controls Private Limited, primarily engaged in design, engineering and manufacturing of a wide range of alternate current chargers.
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#SALES #GROWTH 5 Year CAGR 8.9%
n FY23 (Oct 2022-Sep 2023), net sales grew by 21% YoY to โน19,554 cr. The company witnessed strong demand across all the sectors. The increase was backed by pent-up demand, high commodity prices and increased competitiveness. During the year, new orders grew by ~139% YoY to โน46,383 cr and order backlog as of 31St September 2023 stood at โน45,523 cr. During 9M FY24, sales grew by 15% YoY to โน15,779 cr, backed by project executions and growth in mobility, smart infrastructure and digital industries businesses. New orders stood at โน17,400 cr during the period, supported by smart infrastructure, mobility and energy segments. However, it witnessed lower order intake in the digital industries segment. Going ahead, government spending on infrastructure and rising demand for the products is expected to bring momentum across segments.
n FY23 (Oct 2022-Sep 2023), net sales grew by 21% YoY to โน19,554 cr. The company witnessed strong demand across all the sectors. The increase was backed by pent-up demand, high commodity prices and increased competitiveness. During the year, new orders grew by ~139% YoY to โน46,383 cr and order backlog as of 31St September 2023 stood at โน45,523 cr. During 9M FY24, sales grew by 15% YoY to โน15,779 cr, backed by project executions and growth in mobility, smart infrastructure and digital industries businesses. New orders stood at โน17,400 cr during the period, supported by smart infrastructure, mobility and energy segments. However, it witnessed lower order intake in the digital industries segment. Going ahead, government spending on infrastructure and rising demand for the products is expected to bring momentum across segments.
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