Tracxn Posts INR 2.2 Cr In PAT in Q3; Operating Revenue Grows 4.4% YoY

Market intelligence platform Tracxn Technologies reported a profit after tax (PAT) of INR 2.2 Cr in the December quarter of the financial year 2023-24 (FY24), a 64% decline from INR 6.21 Cr in the year-ago quarter.

However, it is pertinent to note that the recovery of IPO expenses worth INR 4.77 Cr from stakeholders had boosted the startup’s profit in Q3 FY23. Excluding the exceptional gain in the year-ago quarter, Tracxn’s PAT increased almost 55% YoY from INR 1.4 Cr in Q3 FY23.

Meanwhile, its PAT saw a 2.4% increase from INR 2.17 Cr posted in Q2 FY24.

However, the company continues to witness muted growth. Tracxn reported INR 21.1 Cr in operating revenue in the reported quarter, which was a 4.4% rise YoY from INR 20.2 Cr posted in Q3 FY23. 

This was also a 1.6% decline quarter-on-quarter (QoQ) from INR 21.5 Cr. 

The startup said that its Q3 FY24 PAT margin of 10.5% was the highest quarterly PAT margin reported till date.

As a market intelligence platform, which tracks company financials and captables of entities across the globe, Tracxn has a wide range of customer base including private market investors such as venture capital and private equity firms and investment banks as well as corporates, government agencies, government banks, academic institutions, and startup accelerators.

It currently covers private company financials across over 20 countries and cap tables across over 15 countries.

Tracxn said in its Q3 FY24 earnings statement that as the market opens up further from here on, the startup would improve its new customer acquisition as well as customer expansion. 

The startup has also undertaken various initiatives for improving paid customer engagement as well as account expansion to enhance growth from its existing customers, it said.

Meanwhile, its total expenses declined marginally both QoQ and YoY to INR 19.32 Cr in Q3 FY24, with employee benefit expenses witnessing a marginal rise YoY.

Tracxn spent INR 17 Cr towards employee benefit expenses during the reported quarter, which increased from INR 16.98 Cr in Q3 FY23.

The startup said that its expense growth rate had increased from 7% in FY22 to 16% in FY23, primarily due to increase in headcount. However, this has now eased back to 5% in the nine months in FY24.

Headcount had increased last year due to growth initiatives, and subsequently has been optimised due to automation and efficiency initiatives, said the company in its statement.

However, as part of its engagement and expansion initiatives, Tracxn said that it’s setting a separate team for expansion within existing accounts, mainly by increasing penetration of paid licenses within accounts. It is also setting up a separate team within customer success for engagement initiatives. 

Shares of Tracxn ended today’s trading session 1.5% higher at INR 115.05 on the BSE.