IT Software Products company Zaggle Prepaid Ocean Services announced Q1FY24 results:
1. Revenues: Zaggle Prepaid Ocean Services Limited reported a solid financial performance in Q1FY24, with a 34% year-on-year increase in revenues to Rs 1,185 million.
2. Adjusted EBITDA: The company also witnessed a 27% YoY growth in Adjusted EBITDA, reaching Rs 138 million in Q1FY24.
3. Profitability: Zaggle Prepaid Ocean Services Limited maintained a strong Adjusted EBITDA margin of 11.7% during the quarter, showcasing its ability to effectively manage expenses and generate profits.
4. Net Profit: The company reported a profit after tax (PAT) of Rs 58.44 million in Q1FY24, with a PAT margin of 6.72%.
1. Corporate Customers: Zaggle Prepaid Ocean Services Limited experienced a 36% YoY increase in corporate customers, reaching a total of 2,596 in Q1FY24.
2. User Base: The company serves a vast user base, with over 2.42 million aggregate users as of Q1FY24.
3. Product Launch: The launch of Zoyer, Zaggle's vendor management platform, contributed to the company's revenue growth in Q1FY24.
4. Corporate Credit Cards: Zaggle experienced growth in its corporate credit cards business, driving the overall revenue increase.
Raj P Narayanam, Founder and Executive Chairman of Zaggle Prepaid Ocean Services, expressed his satisfaction with the company's IPO performance and thanked shareholders for their trust. He attributed the company's revenue growth to recent initiatives, such as the introduction of corporate credit cards and the launch of Zoyer. Narayanam also highlighted the positive impact of customer expansion and cross-selling efforts on the company's financial results.
Narayanam stated that Zaggle Prepaid Ocean Services Limited expects to see an improvement in margins in the second half of the fiscal year, leveraging historical trends. The company aims to reduce finance costs significantly after reducing borrowings post-IPO.
Narayanam emphasized strong tailwinds in India's fintech and digital payments industry, which, combined with Zaggle's unique positioning in the spend management space, provides a competitive advantage. The company is optimistic about its revenue growth for the fiscal year, projecting a range of 40% to 50%, with an Adjusted EBITDA margin between 11% and 13%. Zaggle projects its total ESOP expense to be close to Rs 200 million for the fiscal year.