One MobiKwik on Tuesday reported a net loss of Rs 3.6 crore for the September 2024 quarter on account of higher expenses.
The company had posted a net profit of Rs 5.3 crore in the July-September period of the preceding 2023-24 fiscal, the company said in an exchange filing. However, the losses were narrowed down sequentially from Rs 6.6 crore in the June quarter (Q1FY25).
The firm attributed the loss in Q2 to continued investments in the business for the next growth phase.
The company's revenue from operations increased 43 percent to Rs 291 crore against Rs 203.45 crore in the same period a year ago. The firm reported a 3.7x jump in Payment GMV, which increased to 28300 crore.
While Mobikwik's revenue from Payments segment increased by 181.3 percent YoY to Rs 18.7 crore, the same from financial services dropped by 24 percent to Rs 103 crore in the second quarter.
The company stated that the decline in financial services revenue is attributed to a more selective approach in disbursing credit products, including scaling back its small-ticket offering "Zip" due to prevailing macroeconomic conditions. It added that the introduction of new financial products is expected to support revenue growth in this segment going forward.
The expenses of One MobiKwik increased to Rs 287 crore from Rs 196 crore in the year-ago quarter. The company's total income increased to Rs 293.67 crore against Rs 207 crore in the year ago period.
The company recorded earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter at Rs 6.8 crore.
"The strong growth in our payments business demonstrates our ability to scale while maintaining strong contribution margins. The Company continues to work on balancing growth and profitability, by increasing market share and launching innovative products," said Upasana Taku, Executive Director, Co-founder & CFO, of One MobiKwik Systems Ltd.
Mobikwik's user base stood at 16.7 crore, with 59 lakh new users onboarded during Q2FY25. It onboarded 1.4 lakh merchants in the quarter, taking its total base to 44 lakh.
One MobiKwik Systems Ltd was trading flat on Tuesday after Q2 results announcement to quote at Rs 564.50 per share on the NSE, up 0.61 percent.
MobiKwik shares were listed in December 2024 with a premium of nearly 60 percent after a bumper response to its three-day share sale in the primary market.
Fintech firm One MobiKwik Systems Ltd stock listed at Rs 440 per share on the NSE, a significant premium of 57.71 percent against the issue price of Rs 279. The company's market valuation stood at Rs 3,890.14 crore post listing of the shares.
At the BSE, the shares of the company were listed at Rs 442.25 per share, a premium of 58.51 percent.
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