Route Mobile shares fall, but recover from lows after Q2 results

Shares of Route Mobile Ltd. fell as much as 2% on Tuesday, November 4, in response to its September quarter results that were reported after market hours on Monday. The stock recovered from opening lows to trade higher

Route Mobile reported a net loss of ₹21 crore during the quarter, compared to a net profit in the same quarter last year.The company reported a net loss due to an exceptional loss of ₹135.9 crore.

The exceptional loss is due to the write-off of advances to two vendors-, a major mobile network operator and an SMS aggregator.

Adjusted for the exceptional item, Route Mobile's profit would have risen by 70% from the previous quarter and is down 0.4% from the same quarter last year.

On a sequential basis, Route Mobile's revenue increased by 6.5%, while when compared to the same quarter last year, the revenue increased by only 0.5%.

Route Mobile's gross profit margin expanded to 22.1% from 21.4% in the June quarter.

Shares of Route Mobile are trading 1.8% lower on Tuesday at ₹710.6. The stock is down 10% in the last one month.