Profit before tax stood at Rs 2.99 crore in Q1 FY24, down 65.15% as against Rs 8.58 crore recorded in Q1 FY23.

The company's adjusted EBITDA grew by 27.4% to Rs 13.8 crore in Q1 FY24 from 10.83 crore reported in Q1 FY23.

Adjusted EBITDA slipped to 11.65% in Q1 FY24 as compared with 12.22% posted in Q1 FY23.

Total expenses increased 46.03% YoY to Rs 116.94 crore during the quarter. Cost of point redemption / gift cards was at Rs 56.98 crore (up 56.92% YoY) and employee benefits expenses stood at Rs 13.95 crore (up 125.36% YoY) during the period under review.

Finance costs were at Rs 4.41 crore, up 206% YoY, due to high-cost debt. Post the IPO, the company has repaid Rs 47 crore of borrowings which will result in lower finance cost from H2.

Commenting on the performance Raj P Narayanam, Founder and Executive Chairman, Zaggle Prepaid Ocean Services Limited said, “During Q1 FY24, we delivered an operational revenue of Rs 1,185 mn with a strong 34% YoY growth. This increase is attributed to our recent endeavors, notably the introduction of corporate credit cards and launch of our vendor management platform – Zoyer. Further, this growth was fueled by customer base expansion and cross-selling initiatives.

Our expectation of revenue growth for this fiscal year is in the range of 40% to 50%, with an adjusted EBITDA Margin (before ESOP expense) between 11% and 13%. Further, we expect the total ESOP expense to be close to Rs 200 mn in the fiscal year.”

Zaggle Prepaid Ocean Services provides financial technology (fintech) products and services along with prepaid cards and has built a portfolio of software as a service (SaaS), including tax and payroll software, and a broad touchpoint reach.

The counter debuted on the bourses on 22 September 2023. The scrip was listed at a price of Rs 162, exhibiting a discount of 1.22% to the issue price of Rs 164.

The scrip rose 0.77% to currently trade at Rs 215.65 on the BSE.