IT stock engaged in providing automotive retail solutions, interactive media content, and many more for the automotive industry jumped 9% in the day’s trade following the acquisition of Geronimo Web, a global leader in providing digital marketing programs.
Price Action
With a market capitalization of Rs. 597 Crores, the shares of IZMO Limited were trading at Rs. 422.10 per equity share, up 4.3 percent from its previous day’s close price of Rs. 404.70.
What Happened
Izmo Inc. the US-based subsidiary of IZMO Limited has announced a strategic acquisition of Geronimo Web, a provider of digital marketing programs for automotive OEMs and Dealerships. Geronimo Web is a global leader in its category, and this acquisition makes Izmo one of the largest providers of digital web platforms across Europe, the USA, and South America.
Post acquisition, Izmo’s clientele will expand to over 4,000 automotive dealers worldwide, offering services in 37 countries, in 16 languages. Geronimo brings an extensive dealer client base and long-standing OEM relationships, which will complement Izmo’s product portfolio to help clients drive their digital retail strategies.
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Dealers who use Geronimo’s platform will now have access to Izmo’s comprehensive suite of products including izmoEmporio (3D virtual showroom), Digital+ (Digital Transformation Program), and MarketingFactory.
About the company
Izmo Limited is engaged in providing automotive retail solutions for dealerships worldwide and is the largest global producer of interactive media content for the automotive industry. Its products include a Digital Retail Web Platform, Parts Distribution CRM, Search Engine Marketing, and Data Analytics, among others.
Coming to the revenue breakdown as per the business divisions, it generated 44 percent of its revenue from Izmo Studio, 29 percent from Frog Data, and 27 percent from Izmo Cars.
It has a strong customer base, some of the Marquee clients include, Audi, Porsche, Nissan, Ford, Toyota, Suzuki, Citroen, Sony Playstation, Hertz, and many others.
Financials and Ratios
Its revenue from operations grew by 21.40 percent from Rs. 154 Crores in FY23 to Rs. 187 Crores in FY24, accompanied by profits of Rs. 20 Crores to Rs. 26 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 8.99 percent, and a return on capital employed (ROCE) of 9.35 percent. It has reported a debt-to-equity ratio of 0.01.
Written by: Bharath K.S
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