The IT stock, which provides automotive retail solutions, interactive media content and more for the automotive industry, rose 9% in intraday trading following its acquisition of Geronimo Web, a global leader in delivering digital marketing programs.
Price Action
With a market capitalization of Rs. Izumo Co., Ltd. The stock was traded at Rs 422.10 per share, up 4.3% from the previous closing price of Rs 404.70.
what happened
Izmo Inc., the U.S. subsidiary of IZMO Limited, announced the strategic acquisition of Geronimo Web, a provider of digital marketing programs for automotive OEMs and dealerships. Geronimo Web is a global leader in its field and this acquisition will make Izmo one of the largest digital web platform providers in Europe, the U.S. and South America.
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Following the acquisition, Izmo's customer base will expand to more than 4,000 automotive dealerships worldwide, serving 37 countries in 16 languages. Geronimo brings an extensive dealer customer base and long-standing OEM relationships, complementing Izmo's product portfolio to help drive clients' digital retail strategies.
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Dealers using Geronimo's platform will 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 provides automotive retail solutions to dealerships worldwide and is the world's largest producer of interactive media content for the automotive industry. The company's products include digital retail web platforms, parts distribution CRM, search engine marketing and data analytics.
Breaking down revenue by business segment, 44% of revenue came from Izmo Studio, 29% from Frog Data, and 27% from Izmo Cars.
It has a strong customer base with major clients including Audi, Porsche, Nissan, Ford, Toyota, Suzuki, Citroen, Sony PlayStation, Hertz and many more.
Finance and Ratios
Revenue from operations grew 21.40 per cent from Rs 1,540 crore in FY23 to Rs 1,870 crore in FY24, while profits increased from Rs 200 crore to Rs 260 crore.
In terms of profitability, the company reports a return on equity (ROE) of 8.99 percent and a return on invested capital (ROCE) of 9.35 percent. The debt-to-equity ratio is reported as 0.01.
Author: Bharath K S
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