Table of content
ECOS Mobility Introduction
Ecos (India) Mobility & Hospitality Ltd. (EIMHL) is a leading provider of chauffeur-driven mobility services for corporate clients in India. Founded in 1973 by Late Khem Raj Loomba, the company started with just one car in Delhi and has since grown significantly.
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Brief about ECOS Mobility
Summary of the business of ECOS Mobility
ECOS Mobility is primarily engaged in the business of providing chauffeured car rentals (“CCR”) and employee transportation services (“ETS”) and have been providing these services to corporate customers, including Fortune 500 companies in India, for more than 25 years. The CCR segment is a B2B2C business, where our customers are corporate companies, and the end consumer is an employee, visitor or client of these corporate companies. Through ETS segment, ECOS Mobility offer customers with solutions to manage their employee ground transportation. ECOS Mobility is the largest and most profitable chauffeur driven mobility provider to corporates in India, in terms of revenue from operations and profit after tax for Fiscal 2023.
ECOS Mobility History
ECOS Mobility Company was originally incorporated as “ET TRAV-AIDES Private Limited” as a private limited company under the Companies Act, 1956 through certificate of incorporation dated February 15, 1996, issued by the RoC. Thereafter, the name of the Company was changed to “Ecos (India) Mobility & Hospitality Private Limited” pursuant to a Board resolution dated August 08, 2008 and a special resolution passed in the general meeting of the Shareholders held on August 12, 2008 and consequently a fresh certificate of incorporation dated September 23, 2008 was issued by the RoC to reflect the change in name. Thereafter, the name of our Company was changed to “Ecos (India) Mobility & Hospitality Limited” upon conversion to a public limited company pursuant to a Board resolution dated February 29, 2024 and a resolution passed in the extra-ordinary general meeting of the Shareholders held on February 29, 2024 and consequently a fresh certificate of incorporation dated March 22, 2024, was issued by the RoC.
ECOS Mobility Promoters & Board of Directors
- ECOS Mobility Promoters are
- Rajesh Loomba
- Aditya Loomba
- Nidhi Seth
- Rajesh Loomba Family Trust
- Aditya Loomba Family Trust
ECOS Mobility Board of directors
Name | Designation |
Rajesh Loomba | Chairman and Managing Director |
Aditya Loomba | Joint Managing Director |
Nidhi Seth | Non-Executive Director |
Rajeev Vij | Independent Director |
Debashish Das | Independent Director |
Archana Jain | Independent Director |
ECOS Mobility Share Holding pattern
Name of the Shareholder | Pre-Offer | Post-Offer |
% of Holding | % of Holding | |
Promoters | ||
Rajesh Loomba | 48.76 | 32.26 |
Aditya Loomba | 38.99 | 25.49 |
Rajesh Loomba Family Trust | 5 | 5 |
Aditya Loomba Family Trust | 5 | 5 |
Nidhi Seth | Negligible | Negligible |
Total (A) | 97.75% | 67.75% |
Promoter Group | ||
Preeti Loomba | Negligible | Negligible |
Noorie Loomba | Negligible | Negligible |
Paramjit Singh Arora | Negligible | Negligible |
Total (B) | Negligible | Negligible |
Public | 2.25% | 32.25% |
ECOS Mobility Strength
- India’s largest and most profitable chauffeur driven mobility provider in a growing chauffeur driven mobility provider market in terms of revenue from operations and profit after tax for Fiscal 2023
- Long-standing customer relationships with business synergies across business segments
- Pan-India presence with operations in 109 cities in India
- Established brand built over years through operational excellence
- Comprehensive technology ecosystem enabling operational superiority
- Robust financials with consistent performance
ECOS Mobility Strategies
- Expanding our presence in Tier-II and Tier-III cities in India and increasing our penetration in cities with existing operations.
- Acquisition of new customers and increasing revenue from existing customers and expanding our sales team.
- Continue to focus on technology to ensure operational excellence.
- Continue focus on building brand through our brand building strategies and focus on operational excellence.
- Continue focus on building brand through our brand building strategies and focus on operational excellence.
- Leverage position in the chauffeur driven mobility provider industry to capitalize on the growth in the industry which will drive our next phase of growth
Industry Outlook
The market for ETS in India is US$ 6.1 billion in Fiscal 2023. Organized players hold an estimated 15% market share of the total ETS market in India (as of CY2023). Further, the market for CCR in India is US$ 4.7 billion in Fiscal 2023. The organized segment in the CCR market is estimated to hold a share at about 25% of total market (as of CY2023). The market growth in the ETS and CCR segments is fuelled by transition from remote work to in-office work, rise in corporate air travel, expansion of office space and expansion of tier-II and tier-III cities, and enhanced efficiency by consolidating car rental and employee transportation services with a single or fewer vendors providing centralised solutions for nationwide coverage. The corporate car rental market in India has grown from a revenue of ₹315.6 billion in CY 2021 to ₹392.4 billion in CY 2023. The employee transportation service market in India has grown from a revenue of ₹398.2 billion in CY 2021 to ₹503.5 billion in CY2023.
Market Definitions and Segmentation
The Indian light vehicle mobility market is divided into the Personal and Cab segments. The “Cab segment” which is the focus of this report, refers to a mobility model where a single vehicle, owned by a specific firm or entity, is utilized to transport multiple users. In this arrangement, the vehicle serves as a shared resource, catering to the transportation needs of various individuals or customers. The cab segment is further divided into Retail, i.e., Business to Consumer(B2C) and Corporate i.e., Business to Business(B2B) categories. Each of these is categorized and defined as below:
Corporate (B2B)
- Employee Transportation Services (ETS): Employee Transportation Services is a structured corporate mobility system aimed at facilitating convenient and efficient commuting for employees between their residences and workplaces. Typically administered by third-party vendors, ETS entails the provision of predefined routes and carpooling initiatives to optimize transportation logistics.
- Corporate Car Rental (CCR): Corporate car rental (Chauffeur-driven) services cater to the needs of corporate clients and their employees, offering professional drivers for transportation purposes such as airport transfers, corporate events, conferences and exhibitions, outstation trips and hourly rentals. A wide range of vehicle options, from economy to luxury, ensures that diverse transportation requirements are met effectively.
- ETS and CCR are combinedly referred to as “corporate mobility” across the report.
Retail (B2C)
- Self-drive Car Rental (SCR): Self-drive Car Rental refers to a mobility solution where individuals can rent vehicles for a specific duration and drive themselves without the need for a chauffeur.
- Retail Car Rental (RCR): Retail Car Rental (Chauffeur-driven) refers to rental cars driven by professional drivers for various purposes, including airport transfers, leisure events, and for hourly requirements. Vehicle options range from economy to luxury and from cars to vans, meeting diverse individual transportation needs.
- Ride-Hailing: A mobile app-based transportation service connecting passengers with independent drivers, and shared car rides.
Corporate Mobility Market Overview
- Corporate mobility has experienced significant growth in recent years in India, primarily due to the expanded presence of MNCs, Indian corporates, SMEs and HNIs who prefer to hire cars for official trips rather owning cars and keeping drivers in the company. In this context, growth is being fueled by:
- Transition from remote work to in-office work
- Focus on employee satisfaction and safety to improve retention rates
- Rise in corporate travel
- Rising corporate air travel and increase in number of airports
- Global Expansion Creates Demand for Indian Mobility Solutions
- Technology Adoption Drives Efficiency and Empowers Providers
- Expansion of office space and hiring, particularly in the IT and ITES sectors.
- Clients need for streamlining operations and enhance efficiency by consolidating car rental and employee transportation services with a single or fewer vendors, providing centralized solution for nationwide coverage.
- An estimated 61.2% of the total office space absorption in India is accounted by top 6 cities as of CY2023. Companies, including MNCs, IT firms, and startups, among others, situated in these urban centers are expanding beyond their current capacity. This expansion has prompted these companies to consider exploring new cities for further growth. This has led to growing demand for employee transportation and corporate car rental services in these locations.
- According to the Ministry of Information and Broadcasting, the number of operational airports in the country has doubled from 74 in 2014 to 148 in 2023. The airline business is flourishing in India, with the government allocating approximately $11 billion (€10.22 billion) for constructing new airports and renovating existing ones. The objective is to increase the number of airports across India to about 200 within five years, up from the current 150. Additionally,
India’s domestic air passenger traffic is expected to double in the next six years, reaching 300 million by the end of 2030.
Tier 2 and Tier 3 cities in India are evolving into vibrant trade and tech hubs, fueled by inclusive development initiatives, infrastructure funding, MSME growth, digital penetration, and poverty reduction schemes. Corporate migration to these non-metro cities is boosting demand for mobility and logistics, while IT decentralization is amplifying the need for innovative transportation services.
Premiumization of Vehicles
Exhibit 15: Premiumization of Vehicles, India, 2018 to 2023
The Indian car market is witnessing a clear shift from economy (Maruti Suzuki Dzire, Wagon R, Hyundai Venue) to premium (Honda City, Hyundai Creta, Toyota Innova Crysta) and luxury segments (Toyota Fortuner, Land Cruiser, MG Gloster). The data reveals a steady decline in the economy car share, dropping from 79.9% in CY2018 to 61.9% in CY2023, while the premium segment has grown from 18.6% to 35.8% in the same period. Luxury cars, though still a small segment, have also seen a healthy rise, jumping from 1.4% to 2.3%. This trend is likely to continue, driven by factors like increasing disposable incomes, growing brand awareness, and a rising demand for enhanced features and comfort.
This shift is also observed in the corporate sector, where there is increasing dependence on chauffeured car rental, rather than owned cars. Secondly, customers are looking for alternatives for app-based aggregators, where corporate mobility providers come in. It necessitates dependable and punctual rental cabs with transparent cost tracking. These factors gain significance as India’s corporate landscape continues to grow. Businesses are increasingly prioritizing employee well-being and productivity, recognizing the value of a safe and comfortable commute. Premium cab services, offering features like spacious interiors, comfortable seating, and enhanced safety measures, cater to these needs and enhance the work experience while travelling. Additionally, rising corporate spending and evolving brand image considerations might further fuel the demand for premium car services in the corporate segment, mirroring the broader market trend.
Revenue Analysis of Corporate Mobility Market
The Indian transportation landscape is experiencing significant shifts, with the ETS and CCR markets showcasing distinct growth trajectories while responding to diverse economic, regulatory, and technological forces.
The employee transportation service market, is estimated to have generated a revenue of ₹503.5 billion ($6.1 billion) as of CY2023, and it exhibits steady expansion growing in line with development of corporates such as IT, Global Capability Centers (GCC) segments etc. It is expected to grow at a CAGR of 11.8% to reach ₹1097.6 billion ($13.2 billion) revenue in CY2030. This aligns with India’s growing economy, the rise of the organized sector, and increasing employee expectations for convenient commutes. The corporate car rental market, estimated at ₹392.4 billion ($4.7 billion) in CY2023, experiences healthy growth fueled by factors like increasing business travel needs, focus on employee well-being, and demand for premium services. It is estimated to grow at a CAGR of 9.3% to reach annual revenue of ₹731.8 billion ($8.8 billion) by CY2030.
Exhibit 16: Corporate Mobility, Revenue Analysis, India, CY2021 to CY2030
The ETS market caters primarily to corporates, particularly in tier-1 cities, with pricing models varying based on vehicle type, route distance, and service customization. Common models include per-employee, per-trip, and fixed monthly charges. The CCR market targets a niche segment seeking premium services, including corporates for executives and clients, individuals for special occasions, and tourists. Hourly rates, fixed fares, and package deals are prevalent pricing models in this segment.
India’s economic growth and rising disposable incomes are key drivers for both markets. Regulatory factors also play a crucial role. The easing of permit regulations and the introduction of online aggregator platforms have facilitated market expansion. Nonetheless, concerns regarding vehicle licensing and driver training persist, requiring policy interventions for sustainable growth.
Technology-led advancements reflected in the form of electric vehicles (EVs) and ride-hailing apps are influencing both markets. ETS providers are exploring EVs to reduce operational costs and environmental impacts.
While both markets will experience growth, ETS caters to broader needs, leading to its faster growth rate. Similarly, CCR caters to a growing business travel segment, which is looking for better convenience, reliability and comfort as compared to app-based aggregator taxi services, resulting in healthy growth forecast. Both markets face competition from other mobility solutions like public transportation, ride-hailing, self-drive car rental etc.
Corporate Car Rental – Breakdown by End-user Type
India’s Corporate Car Rental market in CY2023 reveals a focus on essential business needs, with corporate travel, airport transfers dominating at $3.6 billion accounting for a total of 75.3% of total revenue. Followed by corporate travel, three segments namely event-based travel, corporate conventions, and sports & government account for a total of $0.98 billion with respective shares of 9.6%, 6.2%, and 5.0% revenue. This data suggests a business prioritizing core travel needs, while gradually returning to event-based activities and leisure travel.
Exhibit 17: Corporate Car Rental Breakdown by End-User, Revenue Share, India, CY2023
Unorganized vs Organized Business in Corporate Mobility
The corporate mobility sector is undergoing a significant transformation, with a clear shift towards a more formalized and organized structure. While the market has traditionally been fragmented with local, unorganized players, several factors are driving migration towards becoming organized especially through consolidation.
- Corporate Need for Reliability & Accountability: Companies increasingly prioritize reliable, accountable, and consistent service providers, favoring larger organized players.
- PAN India Ambitions: Big companies aim to expand their presence across India. Consolidation offers the scale and resources needed to achieve this goal.
- Operational Efficiency & Safety: Organized players leverage technology, centralized management, and safety protocols to provide a more efficient and secure travel experience, meeting rising corporate expectations.
- Other factors include the need for adherence to ethical standards, access to standardized service level agreements (SLAs), pan-India requirements, the convenience of managing fewer vendors, the availability of technological solutions, and the pursuit of competitive pricing.
- Employee Transportation Services: Organized players hold an estimated 15% market share of the total ETS market in India (as of CY2023). This includes companies like Ecos (India) Mobility & Hospitality Limited (hereinafter to be referred as “ECO Mobility”), ORIX India, Wise Travel India Limited (hereinafter to be referred as WTi Cabs), Mahindra Logistics Limited (hereinafter to be referred as MLL), Select Cabs People Logistics Pvt. Ltd. that operate across the country with formal registrations, defined service models, and technology platforms. Additionally, there is a rise in end-to-end solutions providers such as Consulttrans Technology Solutions Pvt. Ltd., advocating a “Managed Mobility” model with 100% SLA ownership. Organized market is expected to increase to about 18% by CY2030. By opting to work with organized pan India players, clients seek assurance in meeting their diverse needs while streamlining processes and enhancing overall business performance.
- The remaining 85% of the market (as of CY2023) is dominated by unorganized players. This includes individual taxi drivers, small transportation companies, and informal carpooling arrangements. While they offer lower fares, concerns exist regarding safety, reliability, and service consistency.
Evolution of Solutions in Corporate Mobility Management – New Models
Several companies, like MoveInSync, Routematic and Safetrax, are providing software solutions for managing corporate mobility services. Some of these firms are now exploring the potential to expand their offerings beyond software, integrating fleet management into comprehensive end-to-end employee transport solutions while maintaining an asset-light approach. This trend of end-to-end solutions is anticipated to endure, driving the consolidation of the fragmented fleet operators competing in the corporate mobility market.
However, corporate customers highlight the absence of a maker-checker system in such arrangements. This is because technology is expected to both track, report, bill, and audit transport consumption for employee transport. Implementing a maker-checker system in technology-reliant transportation management enhances accuracy, reduces errors, promotes responsible spending, and addresses privacy concerns.
There are also concerns regarding the data privacy and security of driver data from existing ETS vendors being shared with a technology company that is also a competitor. Due to this, large vendors are hesitant to adopt technology where technology providers are also competing transport service providers.
Integrated mobility providers, such as ECO Mobility, address this gap by offering end-to-end mobility solutions to corporates. Leveraging their pan-India presence, large fleet of cars, and technology-driven service approach, they provide a perfect balance. Unlike the unorganized sector, they offer professionalized services, while also mitigating concerns around technology ownership, data security, and privacy that can arise with pure software-based solutions.
In addition, there has been an emergence of end-to-end technology service providers like Consulttrans Technology Solutions Pvt Ltd., who can offer comprehensive solutions to clients, including trained manpower, help desk management, compliance management, women’s safety parameters, etc., while assuming 100% SLA ownership, with the client retaining control over the technology.
ECOS Mobility Business Data
The table below sets out the details of ECOS Mobility fleet as of March 31, 2024, March 31, 2023 and March 31, 2022:
Fleet | March 31, 2024 | March 31, 2023 | March 31, 2022 | |||
Number of vehicles | As a percentage of total fleet size | Number of vehicles | As a percentage oftotal fleet size | Number of vehicles | As a percentage of total fleet size | |
Vehicles owned | 750 | 5.81% | 823 | 10.53% | 598 | 13.52% |
Vehicles operated through vendors | 12,166 | 94.19% | 6,991 | 89.47% | 3,825 | 86.48% |
ECOS Mobility Verticals
- Chauffeured Car Rentals
- Employee Transportation Services
ECOS Mobility provide services to customers across public and private sectors operating in a range of industries including information technology, business process outsourcing, consultancy, healthcare, e-commerce, pharmaceutical, legal and manufacturing. Over two and a half decades of our operations, we have identified the evolving requirements of our customers and customised our services to meet these requirements. In Fiscal 2024, through our CCR and ETS segments, we have completed more than 3,100,000 trips averaging at more than 8,400 trips in a day. Set forth is a description of business segments and services provided through them:
ECOS Mobility Product wise break-up
In ₹ million
Business Divisions | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | |||
₹ | % of Revenue | ₹ | % of Revenue | ₹ | % of Revenue | |
CCR | 2,400.22 | 43.29% | 2,163.71 | 51.19% | 845.31 | 57.37% |
ETS | 3,032.96 | 54.71% | 1,948.13 | 46.09% | 571.05 | 38.76% |
Others | 110.93 | 2.00% | 114.92 | 2.72% | 57.08 | 3.87% |
ECOS Mobility Revenue contribution from Geography presence
(in ₹ million)
States | Major focussed cities | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | |||
Revenue | % of Revenue | Revenue | % of Revenue | Revenue | % of Revenue | ||
Karnataka | Bangalore | 1,100.96 | 19.86% | 863.23 | 20.42% | 210.7 | 14.30% |
Haryana | Gurgaon | 892.15 | 16.09% | 618.26 | 14.63% | 196.31 | 13.32% |
Delhi | Delhi | 338.04 | 6.10% | 297.38 | 7.04% | 111.62 | 7.58% |
Maharashtra | Mumbai | 621.3 | 11.21% | 504.88 | 11.94% | 299.25 | 20.31% |
Pune | 416.01 | 7.50% | 313.01 | 7.41% | 77.2 | 5.24% | |
Telangana | Hyderabad | 573.27 | 10.34% | 490.2 | 11.60% | 116.97 | 7.94% |
Tamil Nadu | Chennai | 430.37 | 7.76% | 215.72 | 5.10% | 46.57 | 3.16% |
Uttar Pradesh | Noida | 338.88 | 6.11% | 241.09 | 5.70% | 70.98 | 4.82% |
Gujarat | Ahmedabad | 159 | 2.87% | 84.42 | 2.00% | 30.81 | 2.09% |
West Bengal | Kolkata | 112.49 | 2.03% | 104.37 | 2.47% | 74.08 | 5.03% |
Rajasthan | Jaipur | 96.47 | 1.74% | 78.11 | 1.85% | 33.4 | 2.27% |
Other Indian states | – | 306.83 | 5.53% | 248.51 | 5.88% | 135.31 | 9.18% |
Total | – | 5,385.77 | 97.14% | 4,059.19 | 96.03% | 1,403.21 | 95.26% |
(in ₹ million)
Customers | March 31, 2024 | Fiscal 2023 | Fiscal 2022 | |||
Revenue | % of Revenue | Revenue | % of Revenue | Revenue | % of Revenue | |
MNC Corporates | 2,704.28 | 48.78% | 1,980.95 | 46.87% | 686.51 | 46.59% |
Indian Corporates | 2,055.79 | 37.08% | 1,587.38 | 37.56% | 529.47 | 35.93% |
Travel Company/Tour Agent | 245.85 | 4.43% | 262.11 | 6.20% | 110.35 | 7.49% |
Event Based Transportation | 232.14 | 4.19% | 135.05 | 3.20% | 9.89 | 0.67% |
Others | 195.12 | 3.52% | 146.36 | 3.46% | 80.13 | 5.44% |
ECOS Mobility Customer dependency
(in ₹ million)
Customers | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | |||
Revenue | % of Revenue | Revenue | % of Revenue | Revenue | % of Revenue | |
Largest customer | 354.38 | 6.39% | 255.35 | 6.04% | 105.59 | 7.17% |
Top 5 customers | 1,250.40 | 22.55% | 1,022.54 | 24.19% | 321.15 | 21.80% |
Top 10 customers | 1,820.51 | 32.84% | 1,507.39 | 35.66% | 509.85 | 34.60% |
Top 15 customers | 2,262.77 | 40.81% | 1,871.79 | 44.28% | 637.25 | 43.25% |
Top 20 customers | 2,627.92 | 47.40% | 2,195.18 | 51.94% | 733.05 | 49.75% |
Top 25 customers | 2,961.75 | 53.42% | 2,444.71 | 57.84% | 811.39 | 55.07% |
ECOS Mobility Supplier dependency
(in ₹ million)
Vendors | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | |||
Revenue | % of Revenue | Revenue | % of Revenue | Revenue | % of Revenue | |
Vendor I | 189.92 | 3.43% | 91.97 | 2.18% | 16.36 | 1.11% |
Vendor II | 104.73 | 1.89% | 90.33 | 2.14% | 6.63 | 0.45% |
Vendor III | 71.96 | 1.30% | 57.78 | 1.37% | 5.56 | 0.38% |
Vendor IV | 70.54 | 1.27% | 71.47 | 1.69% | 9.05 | 0.61% |
Vendor V | 97.84 | 1.76% | 6.03 | 0.14% | 3.1 | 0.21% |
ECOS Mobility Customers
Customers | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
MNC Corporates | 237 | 265 | 186 |
Indian Corporates | 536 | 491 | 393 |
Event Based Transportation | 13 | 4 | 4 |
Travel Company/Tour Agent | 170 | 175 | 126 |
Total | 956 | 935 | 709 |
Competition
The chauffeur driven mobility industry is heavily influenced by the overall economic conditions of a country or region. When the economy is strong, people and corporates are more likely to travel for business or leisure, leading to increased demand for chauffeured car rentals. Conversely, during an economic downturn, people and corporates may cut back on travel, resulting in lower demand for chauffeured car rentals. Regulatory changes like simplified licensing for taxis and bike-sharing platforms could further impact growth. Technology also plays a crucial role, with mobile apps streamlining booking and payment processes. India is poised to lead the global corporate mobility market in terms of growth,
with a projected CAGR of 10.7% from CY 2023 to CY 2030. India’s robust economic growth and rising disposable incomes are key drivers of the B2C mobility market.
ECOS Mobility Peer companies comparison
Fiscal 2024 | Face Value per equity share (₹) | EPS (₹) | NAV (per share) (₹) | P/E | RoNW (%) | Total income (in ₹ millions) | |
Basic | Diluted | ||||||
Ecos (India) Mobility & Hospitality Limited | 2 | 10.42 | 10.42 | 29.57 | 32.15 | 42.75 | 5,682.05 |
Listed peers | |||||||
Wise Travel India Ltd | 10 | 12.79 | 12.79 | 89.52 | 20.82 | 15.62 | 4,140.87 |
Shree OSFM E- Mobility Ltd | 10 | 7.02 | 7.02 | 58.64 | 23.73 | 15.24 | 1,190.59 |
(₹ million)
Particulars | FY23 | ||
Ecos (India) Mobility & Hospitality Limited | Wise Travel India Ltd | Shree OSFM E-Mobility Ltd | |
Revenue from Operations | 4,226.76 | 2,495.99 | 821.13 |
EBITDA | 697.27 | 185.82 | 77.43 |
EBITDA Margin | 16.50% | 7.44% | 9.43% |
Profit for the Year | 435.91 | 102.69 | 30.9 |
PAT Margin | 10.25% | 4.11% | 3.74% |
ROCE | 40.90% | 22.90% | 16.35% |
ROE | 46.70% | 29.79% | 16.34% |
Debt to Equity Ratio | 0.29 | 0.65 | 0.45 |
ECOS Mobility Subsidiary companies
- Ecreate Events Private Limited (99.99% Holding)
- Eco Car Rental Services Private Limited (99.99% Holding)
- Consulttrans Technology Solutions Private Limited (99.99% Holding)
ECOS Mobility Group companies
- Optimist Softech Private Limited; and
- CRA Agro Farms Private Limited
ECOS Mobility SWOT ANALYSIS
- Strengths
- Diverse Service Offerings: EIMHL provides a wide range of services, including Chauffeured Car Rentals (CCR), Employee Transportation Services (ETS), and self-drive cars, catering to various customer needs.
- Strong Clientele: The company serves numerous high-profile clients, including 42 Fortune 500 companies and 60 BSE 500 companies.
- Extensive Fleet: With over 12,000 vehicles, EIMHL has a robust and diverse fleet, including luxury and specialty vehicles.
- Pan-India Presence: EIMHL operates in 109 cities across 21 states and four union territories, ensuring a wide geographical reach.
- Financial Performance: The company has shown significant growth in revenue and profit, indicating strong financial health.
- Weaknesses
- High Operational Costs: Managing a large fleet and extensive operations can lead to high operational costs, impacting profitability.
- Dependence on Corporate Clients: A significant portion of EIMHL’s revenue comes from corporate clients, making it vulnerable to economic downturns affecting these clients.
- Limited International Presence: While EIMHL has partnerships for international services, its direct presence outside India is limited.
- Opportunities
- Expansion into New Markets: There is potential for EIMHL to expand its services to new cities and regions within India and internationally.
- Technological Advancements: Investing in technology, such as AI for route optimization and customer service, can enhance operational efficiency and customer experience.
- Sustainable Mobility Solutions: With increasing focus on sustainability, EIMHL can explore eco-friendly vehicle options and services to attract environmentally conscious clients.
- Threats
- Intense Competition: The mobility and transportation sector is highly competitive, with numerous players offering similar services.
- Regulatory Changes: Changes in government regulations related to transportation and mobility services can impact operations and costs.
- Economic Fluctuations: Economic downturns can affect corporate spending on mobility services, impacting EIMHL’s revenue.
ECOS Mobility Business risk factors
- ECOS Mobility business depends on relationships with vendors who supply vehicles and chauffeurs to us, and any adverse changes in such relationships, or inability to enter into new relationships, could adversely affect business and results of operations.
- The increase in the prices of new vehicles and increased fleet costs may adversely affect business and results of operations.
Fiscal 2024(no. of owned vehicles) | Fiscal 2023(no. of owned vehicles) | Fiscal 2022(no. of owned vehicles) | |
Economy | 413 | 528 | 370 |
Premium | 255 | 217 | 166 |
Buses/ Vans | 28 | 30 | 27 |
Luxury | 54 | 48 | 35 |
Total | 750 | 823 | 598 |
The table below sets out amounts incurred by ECOS Mobility towards procurement of new vehicles in Fiscal 2024, Fiscal 2023 and Fiscal 2022, together with such amounts as a percentage of total expenses in the same period:
(in ₹ million)
Vehicles | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | |||
Amount incurred on procurement of new vehicles | % of total expenses | Amount incurred on procurement of new vehicles | % of total expenses | Amount incurred on procurement of new vehicles | % of total expenses | |
Economy | 90.42 | 1.86% | 142.13 | 3.87% | – | 0.00% |
Premium | 117.75 | 2.42% | 97.62 | 2.66% | 2.11 | 0.15% |
Buses/ Vans | 5.02 | 0.10% | 8.33 | 0.23% | – | 0.00% |
Luxury | 31.6 | 0.65% | 53.29 | 1.45% | 5.61 | 0.40% |
Total | 244.79 | 5.04% | 301.38 | 8.21% | 7.73 | 0.56% |
- ECOS Mobility generate a significant percentage of revenue from operations from customers in major cities in India. If operations in these major cities are negatively affected, financial results and future prospects would be adversely impacted.
- ECOS Mobility have long standing relationships with some of customers which also contribute significantly to revenue from operations. If one or more of such customers choose to terminate contracts, business, financial condition and results of operations may be adversely affected.
(in ₹ million)
Number of years of relationship | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | |||
Revenue | % of Revenue | Revenue | % of Revenue | Revenue | % of Revenue | |
Customers with whom Company has more than 10 years relationship | 897.95 | 16.20% | 443.76 | 10.50% | 106.71 | 7.24% |
Customers with whom Company has 7-10 years relationship | 940.46 | 16.96% | 875.43 | 20.71% | 146.12 | 9.92% |
Customers with whom Company has 5-7 years relationship | 1,329.60 | 23.98% | 993.38 | 23.50% | 308.36 | 20.93% |
Customers with whom Company has 3-5 years relationship | 1,036.61 | 18.70% | 1,162.31 | 27.50% | 457.58 | 31.06% |
Customers with whom Company has 1-3 years relationship | 968.77 | 17.47% | 299.21 | 7.08% | 308.84 | 20.96% |
Customers with whom Company has 0-1 year of relationship | 259.79 | 4.69% | 337.75 | 7.99% | 88.76 | 6.02% |
Total | 5,433.18 | 98.00% | 4,111.84 | 97.28% | 1,416.36 | 96.13% |
- ECOS Mobility derive a significant part of our revenue from some customers, and we do not have long term contracts with all of these customers. If one or more of such customers choose not to utilise our services or to terminate our contracts or agreements, business, cash flows, financial condition and results of operations may be adversely affected.
- Intense competition in the chauffeur driven mobility provider industry could affect our pricing, which could consequently decrease our revenues and profitability.
- ECOS Mobility incur significant expenditure towards vendors and vehicle operation expenses. Any increase in factors affecting the pricing of the services provided by vendors or cost of operating our vehicles may have an adverse impact on business, financial conditions and results of operations.
(In ₹ million)
Particulars | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | |||
₹ | % of total expenses | ₹ | % of total expenses | ₹ | % of total expenses | |
Cost of Services | 3,886.45 | 79.99% | 2,924.01 | 79.64% | 962.86 | 69.49 % |
- Any downturn in Global capability centres (“GCC”) would create an adverse impact on revenue from customers in the ETS business segment, cash flows and financial conditions.
Industry | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | |||
₹ | % of revenue from ETS customers (%) | ₹ | % of revenue from ETS customers (%) | ₹ | % of revenue from ETS customers (%) | |
GCC | 2,020.84 | 66.63% | 1,275.28 | 65.46% | 393.92 | 68.98% |
- ECOS Mobility have had high attrition rates in the past could have an adverse effect on business, operations and financial condition.
Particulars | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
Rate of attrition (%) | 28.26% | 28.28% | 20.79% |
ECOS Mobility Financials
ECOS Mobility Key Performance Indicators
(in ₹ million, except percentages and ratios)
Particulars | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
Revenue from Operations | 5,544.11 | 4,226.76 | 1,473.44 |
EBITDA | 899.63 | 697.27 | 180.51 |
EBITDA Margin | 16.23% | 16.50% | 12.25% |
Profit for the Year | 625.31 | 435.91 | 98.71 |
PAT Margin | 11.00% | 10.25% | 6.51% |
ROCE | 42.88% | 40.90% | 19.07% |
ROE | 42.75% | 46.70% | 14.80% |
Debt to Equity Ratio | 0.12 | 0.29 | 0.05 |
ECOS Mobility Balance Sheet
(In ₹ million)
Particulars | March 31, 2024 | March 31, 2023 | March 31, 2022 |
ASSETS | |||
non-current assets | 555.17 | 508.25 | 193.78 |
current assets | 2,411.42 | 1,788.80 | 930.06 |
Total assets | 2,966.59 | 2,297.05 | 1,123.84 |
EQUITY & LIABILITIES | |||
equity | 1,774.12 | 1,151.25 | 715.64 |
non-current liabilities | 164.63 | 219.81 | 25.72 |
current liabilities | 1,027.84 | 925.99 | 382.48 |
Total equity and liabilities | 2,966.59 | 2,297.05 | 1,123.84 |
ECOS Mobility Profit & Loss
(in ₹ million, except percentages and ratios)
Particulars | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
Revenue from Operations | 5,544.11 | 4,226.76 | 1,473.44 |
EBITDA | 899.63 | 697.27 | 180.51 |
EBITDA Margin | 16.23% | 16.50% | 12.25% |
Profit for the Year | 625.31 | 435.91 | 98.71 |
PAT Margin | 11.00% | 10.25% | 6.51% |
ECOS Mobility Cash Flow
(In ₹ million)
Particulars | March 31, 2024 | March 31, 2023 | March 31, 2022 |
Net cash flows from operating activities | 671.36 | 163.27 | 216.78 |
Net cash flows (used) in investing activities | (542.49) | (467.44) | (75.75) |
Net cash flows from/ (used) in financing activities | (107.63) | 178.79 | (130.07) |
Net increase/ (decrease) in cash and cash equivalents | 21.24 | (125.39) | 10.96 |
Cash and cash equivalents at the end of the year end | (24.71) | (45.95) | 79.44 |
ECOS Mobility Capital structure
(in ₹ million, except ratio)
Particulars | March 31, 2024 |
borrowings | |
Current borrowings | 157.39 |
Non-current borrowings | 59.79 |
Total borrowings | 217.18 |
equity | |
Equity share capital | 120.00 |
Other equity | 1,654.12 |
Total equity | 1,774.12 |
Total borrowings/ total equity | 0.12 |
IPO Details
ECOS Mobility IPO Details
Feature | Details |
---|---|
IPO Type | Offer for Sale |
Issue Size | ₹601.20 crores |
Price Band | ₹318 – ₹334 per share |
Face Value | ₹2 per share |
Minimum Investment | ₹14,696 (44 shares) |
Open Date | Wednesday, August 28, 2024 |
Close Date | Friday, August 30, 2024 |
Listing Exchanges | BSE, NSE |
Category-wise Allocation | QIB: 50%, NII: 15%, Retail: 35% |
Litigation involved in ECOS Mobility
Gray Market Premium
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