- Pine Labs reported a consolidated net profit of Rs 6 crore in Q2 FY, reversing last year's loss
- Revenue from operations rose 18% to Rs 650 crore in the July-September quarter
- EBITDA doubled to Rs 75.4 crore with margin expanding to 11.6% from 6.5% last year
Recently-listed Pine Labs Ltd. swung to profit in the second quarter of the current financial year, due to lower depreciation and ESOP expenses.
Consolidated net profit in the July-September quarter was Rs 6 crore, compared to a loss of Rs 32 crore in the corresponding period last year, according to an exchange filing on Wednesday. On a sequential basis, Pine Labs reported a net profit for a second straight quarter.
Revenue from operations jumped nearly 18% to Rs 650 crore from Rs 552 crore last year.
On the operating side, earnings before interest, tax, depreciation and amortisation doubled to Rs 75.4 crore from Rs 36 crore. Margin expanded to 11.6% versus 6.5% last year.
ESOP expense as a share of revenue declined from 7% to 4% and depreciation costs narrowed from 6% to 5%.
"Declining depreciation on devices, driven by increased software led model and expanded use of refurbished devices, reinforces our strategy to go capex-light," the company said.
"ESOP expenses continue to decline as old grants near end of their tenure and new grants have been issued at FMV instead of deep discount prices," it added.
During the quarter, Pine Labs processed its highest-ever quarterly Gross Transaction Value (GTV) of over $48 billion and surpassed ten lakh merchants on its platform, a press release said. Platform GTV grew 92% YoY and number of transactions jumped 44%.
The company provides payments technology infrastructure to customers in India and international markets like Malaysia, UAE, Singapore, Australia, the US and Africa.
Shares of Pine Labs settled 0.8% lower at Rs 247.6 on the BSE, ahead of the results, compared to a flat benchmark Sensex. The stock is down 1.6% since listing in November.
The Gurgaon-based company debuted on the stock market with nearly 10% premium after an IPO worth Rs 3,900 crore.
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