Tracxn Q3 FY23 PAT Grows Nearly 500%To INR 6.21 Cr On Recovery Of IPO Expenses

SUMMARY

Revenue from operations grew marginally by 1.23X to INR 20.25 Cr in Q3 FY23

Total expenses rose 1.24X YoY to INR 19.51 Cr due to employee benefits expenses

Tracxn generated more than 70% of its revenues from international markets

Market intelligence platform Tracxn Technologies saw its profit after tax (PAT) grow nearly six-fold year-on-year (YoY) to INR 6.21 Cr in the third quarter (Q3) of the financial year 2022-23 (FY23), largely from the recovery of IPO expenses worth INR 4.77 Cr.

“The transaction costs aggregating to INR 477.86 Lakhs incurred up to September 30, 2022 with respect to the IPO of the Company were recognised as an expense up to the previous quarter. During the quarter, pursuant to successful completion of the IPO, these expenses are recovered from the selling shareholders,” the company highlighted in its quarterly financial report.

The company had posted a profit of INR 1.07 Cr in Q3 FY22 and a PAT of INR 1.53 Cr in Q2 FY23. In the nine-month period ended December 2022, Tracxn’s cumulative profit nearly doubled to INR 8.58 Cr.

Revenue from operations grew marginally by 1.23X to INR 20.25 Cr in Q3 FY23, compared to INR 16.42 Cr reported in the year-ago quarter. Total income grew to INR 20.95 Cr during the quarter under review, up 1.24X from INR 16.81 Cr in Q3 FY22.

Meanwhile, total expenses continued to surge, up 1.24X YoY to INR 19.51 Cr. Of these, employee benefits expenses accounted for the biggest chunk of expenditure at INR 16.98 Cr while other expenses stood at INR 2.47 Cr.

Excluding INR 4.7 Cr IPO expenses, Tracxn’s Q3 FY23 EBITDA improved to INR 80 Lakh, while EBITDA margin improved to 3.9%.

Tracxn also saw an uptick in key operational metrics. While customer accounts grew 16% YoY to 1,187 at the end of December 2022, the number of users also rose 15% on a yearly basis to 3,391. At the end of the quarter, the company claimed that it had profiled more than 20 Lakh entities, up 24% YoY.

The company further claimed that more than 70% of its revenues came from overseas. Besides India, the US, the UK and Singapore emerged as the top countries by number of customer accounts.

The market intelligence startup added that it currently covers financials of entities across 15+ countries and was witnessing a growing demand for related data from private equity and investment banking firms.

Founded in 2012 by Abhishek Goyal and Neha Singh, Tracxn operates a market intelligence platform that tracks company financials and captables of entities across the globe.

Tracxn closed 2.01% lower at INR 90.25 on the BSE on Wednesday (February 8).