- Zaggle Prepaid Ocean Services Q1 net profit fell 56.9% to Rs 17.5 crore
- Consolidated revenue dropped 31.6% sequentially to Rs 423 crore in Q1
- EBITDA declined 47.7% to Rs 30.4 crore, with margin contracting to 7.2%
Zaggle Prepaid Ocean Services Ltd reported a sharp sequential decline in its financial performance for the April-June quarter, with consolidated net profit falling 56.9%, quarter-on-quarter to Rs 17.5 crore from Rs 40.6 crore in the previous quarter, according to an exchange filing on Friday.
Consolidated revenue declined 31.6% sequentially to Rs 423 crore, compared with Rs 618 crore in the preceding quarter.
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The drop in revenue was accompanied by a steeper decline in operating profitability, indicating pressure on the company's earnings during the quarter. Earnings before interest, taxes, depreciation and amortisation fell 47.7% quarter-on-quarter to Rs 30.4 crore from Rs 58.1 crore. The Ebitda margin consequently contracted to 7.2% in the June quarter from 9.4% in the previous quarter.
The sequential decline in profit was significantly sharper than the fall in revenue, with net profit dropping by more than half during the quarter. The Ebitda also declined at a faster pace than revenue, reflecting a contraction in operating margins.
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Zaggle Prepaid's Q1 performance comes after a stronger March quarter, when the company reported revenue of Rs 618 crore and net profit of Rs 40.6 crore.
The company operates in the spend management and fintech space, offering corporate expense management, employee benefits and rewards solutions. Its performance is closely watched as growth in corporate spending and digital payments influences demand for its services.
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