Synopsis
MobiKwik Systems Limited faced a significant net loss of Rs 55 crore in Q3 FY25, marking a staggering 1,000 percent decrease compared to the previous year. Revenue also declined by 7 percent, reflecting the company's challenging financial landscape amidst rising expenses.Key Takeaways
- MobiKwik's net loss reached Rs 55 crore.
- Revenue fell by 7 percent quarter-on-quarter.
- Total expenses increased by 10.55 percent.
- 5 million new users were added, totaling 172 million.
- Merchant base expanded to 4.5 million.
Mumbai, Feb 4 (NationPress) MobiKwik Systems Limited disclosed a staggering 1,000 percent consolidated net loss amounting to Rs 55 crore for the December quarter (Q3 FY25), a significant drop from the net profit of Rs 5 crore achieved in the same quarter last year (Q3 FY24).
The operational revenue also saw a 7 percent decline quarter-on-quarter, falling from Rs 291 crore in the July-September period, as per the company's exchange filing.
Total income for Q3 FY25 was reported at Rs 2,744.69 crore, reflecting a 6.5 percent decrease from Rs 2,936 crore in Q2 FY25.
In contrast, total expenses escalated by 10.55 percent in Q3FY25, reaching Rs 3,171.41 crore compared to Rs 2,868.64 crore in Q2 FY25.
This rise in expenses played a role in diminishing profitability, as profit before tax fell by 47.66 percent to Rs 33.22 crore, down from Rs 63.47 crore in the previous quarter.
MobiKwik, which made its stock exchange debut in December, announced that it had entered into a waiver agreement with one of its lending partners.
As part of this agreement, the company consented to relinquish income of Rs 24.21 crore related to financial services for the quarter ending June 30, 2024.
This amount was offset against revenue from financial services during the September quarter, as mentioned in its filing.
The company recorded an EBITDA loss of Rs 43 crore, a notable decline from the positive Rs 10.8 crore reported during the same period last year, and Rs 6.8 crore in the previous quarter (Q2 FY25).
The gross merchandise value (GMV) for the payments segment indicated growth compared to the previous year, totaling Rs 29,445 crore.
However, relative to the previous quarter, this growth was more modest, reflecting a 4 percent increase.
The company added 5 million new users during the quarter, bringing the total user base to 172 million.
Furthermore, MobiKwik expanded its merchant network by adding 1.1 lakh new merchants, increasing the overall merchant base to 4.5 million.
Following the Q3 earnings announcement, shares were trading lower with a 1.56 percent drop at Rs 400.
