Zaggle Q1: Profit Surges Over 8X YoY To INR 16.7 Cr, Revenue Jumps 113%

SUMMARY

While consolidated PAT surged on a YoY basis, it declined over 12% in Q1 FY25 on a QoQ basis

Revenue from operations more than doubled YoY to INR 252.2 Cr in Q1 FY25 but fell 7.7% on a QoQ basis

Reported EBITDA grew 181.8% to INR 22.43 Cr during the quarter under review from INR 7.96 Cr in Q1 FY24

Fintech SaaS startup Zaggle’s consolidated profit after tax (PAT) surged 716% to INR 16.73 Cr in the quarter ended June 30, 2024 (Q1 FY25) from INR 2.05 Cr in the year-ago period due to strong growth in its business.

However, PAT declined over 12% on a quarter-on-quarter (QoQ) basis from INR 19.16 Cr.

Revenue from operations zoomed 113% to INR 252.2 Cr in Q1 FY25 from INR 118.4 Cr in the corresponding quarter last year. However, it declined 7.7% on a QoQ basis from INR 273.37 Cr.

The enterprise tech startup attributed the year-on-year (YoY) increase in its top line to strong demand for its accounts payable platform Zoyer and credit card bundled solutions.

Zaggle’s reported EBITDA grew 181.8% to INR 22.43 Cr during the quarter under review from INR 7.96 Cr in Q1 FY24.

Meanwhile, total expenses surged over 100% to INR 233.96 Cr in Q1 FY25 from INR 116.94 Cr in the year-ago quarter.

The biggest expense was the cost of point redemption/ gift cards, which nearly doubled to INR 110.4 Cr in Q1 FY25 from INR 57.9 Cr in Q1 FY24.

In Q1 FY25, Zaggle spent INR 14.1 Cr towards employee benefits expenses as against INR 13.9 Cr in the year-ago period.

The startup trimmed its ESOP expenses to INR 3.14 Cr in Q1 FY25 from INR 5.84 Cr in Q1 FY24. Zaggle said it expects its total ESOP expenses to be around INR 7-9 Cr in FY25.

Meanwhile, finance cost declined to INR 2.05 Cr during the quarter under review from INR 4.41 Cr in the year-ago quarter and INR 3.79 Cr in the preceding March quarter. The startup attributed this to prepayment of debt post its IPO.

Zaggle listed on the stock exchanges in September last year at INR 164 per share. Founded in 2011, the startup provides a spend management and corporate employee benefits platform. It helps businesses automate their accounts and issue prepaid cards, in partnership with banking partners, to reward their employees.

Meanwhile, in a separate exchange filing on July 30, Zaggle said it has allotted more than 1.24 Lakh additional stock options under Zaggle Employee Stock Option Scheme 2022 (Zaggle ESOP 2022) upon exercise of the vested options.

Ahead of the earnings announcement, shares of Zaggle ended today’s trading session almost flat at INR 335.05 apiece on the BSE.