The India unit of fintech firm Pine Labs reported nearly flat revenue at Rs 1,317 crore for the fiscal year ending March 2024 (FY24), while its losses surged threefold.
The New Delhi-based firm's operating revenue increased by just 2.8 percent, reaching Rs 1,317 crore in FY24 compared to Rs 1,281 crore in FY23. However, with expenses rising by nearly 16 percent, Pine Labs' losses jumped to Rs 187 crore in FY24, up from Rs 56 crore the previous year.
Most of Pine Labs' revenue came from transaction processing and settlement, which contributed 61 percent of total operating revenue. This segment grew by a modest 1.5 percent, bringing in Rs 805 crore, according to the data sourced by TheKredible.
The company also earned Rs 67 crore from digitization and services provided at petroleum outlets.
Pine Labs further offers gifting solutions through platforms like Qwikcilver and Pine Perks. However, income from this segment dropped by 44.5 percent to Rs 111 crore in FY24. Revenue from device sales, plastic cards, and other smaller sources brought the total revenue to Rs 1,384 crore, up from Rs 1,328 crore in FY23.
On the cost side, a large percent of Pine Labs' total expenditure went to employee benefits, followed by legal and professional fees.
Overall, total expenditures rose by 15.8 percent to Rs 1,624 crore in FY24.
Group-level performance
At the group level, which includes its international businesses and subsidiaries, Pine Labs saw consolidated revenue rise by 9.8 percent to Rs 1,743 crore in FY24 from Rs 1,588 crore in FY23, with majority business coming from India entity, per the unaudited consolidated results of the firm.
Despite this growth, the company's net loss widened due to higher operating and finance costs. The Group's net loss after tax increased to Rs 339 crore, compared to Rs 227 crore in FY23.
The rise in losses was largely driven by a sharp increase in finance costs, which jumped to Rs 662 crore in FY24 from Rs 372 crore the previous year. Meanwhile, finance income dropped significantly to Rs 479 crore from Rs 824 crore in FY23, further affecting the company's bottom line.
Currently headquartered in Singapore, Pine Labs is in the process of completing the necessary legal procedures through the National Company Law Tribunal (NCLT) to move its base to India.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
