Zaggle Prepaid Ocean Services witnessed a remarkable surge in its stock price, soaring by 16.02 per cent to Rs 269, following the release of its standout quarterly financial results. The company's standalone net profit for the quarter stood impressively higher at Rs 15.22 crore, compared to Rs 1.49 crore in Q3 FY23.
The revenue from operations also showcased robust growth, registering a notable 35.12 per cent year-on-year increase, reaching Rs 199.51 crore in the quarter ended December 31, 2023. Moreover, the profit before tax surged to Rs 20.90 crore in Q3 FY24, compared to Rs 2.76 crore recorded in Q3 FY23.
The reported EBITDA for Q3 FY24 was Rs 20.38 crore, demonstrating a substantial increase from Rs 7.41 crore reported in Q3 FY23. Additionally, the reported EBITDA margin showed significant improvement, standing at 10.2 per cent in Q3 FY24, compared to 5 per cent in Q3 FY23.
Finance costs saw a notable decline, down by 27.7 per cent year-on-year to Rs 2.14 crore, primarily attributed to the prepayment of debts.
Raj P Narayanam, founder and executive chairman of Zaggle Prepaid Ocean Services, expressed his delight at the company's exceptional performance. He attributed the record-breaking quarterly revenues to strategic product diversification and the successful launch of credit card offerings.
Narayanam further highlighted the company's foray into the fleet loyalty card program, with Torrent Gas joining as a client. This move is anticipated to unlock significant volume and margin potential in the fleet spends market, estimated to be worth Rs 730 billion in India.
In the first nine months of FY24, Zaggle Prepaid Ocean Services achieved a remarkable revenue growth of over 37.0 per cent, with an Adjusted EBITDA Margin (before ESOP expense) of 55.3 per cent. The company remains steadfast in its full-year guidance, aiming for 40 - 50 per cent revenue growth and an Adjusted EBITDA Margin (before ESOP expense) between 11 per cent and 13 per cent.
Zaggle Prepaid Ocean Services, a provider of financial technology (fintech) products and services, offers prepaid cards and a portfolio of software as a service (SaaS) solutions, including tax and payroll software. The company's commitment to innovation and excellence underscores its dedication to maintaining its upward trajectory and solidifying its leadership position in the industry.