Zaggle Prepaid At Over Four-Month High After Q1 Profit Surges Over Eight Times
"We are tempted to up our guidance (revenue) depending on how Q2 goes," Avinash Godkhindi, MD, CEO of Zaggle Prepaid told NDTV Profit.
Shares of Zaggle Prepaid Ocean Services Ltd. hit an over-four-month high on Wednesday after its profit jumped a whopping 750% in the first quarter.
The company's net profit surged to Rs 17 crore in the quarter ended June 2024 from Rs 2 crore a year ago, according to an exchange filing.
Zaggle Prepaid Q1 Results: Key Highlights (Consolidated, YoY)
Revenue rose 113.56% to Rs 252 crore.
Ebitda rose 175% to Rs 22 crore.
Margin at 8.9% versus 6.7%.
Net profit rose 750% to Rs 17 crore.
The company is actively exploring complementary inorganic expansion opportunities and will provide updates as positive developments occur, the company said in the exchange filing. These potential acquisitions would help Zaggle scale faster, it said.
"With that being stated, we expect to continue a similar performance in the upcoming quarters, driven by an increased customer base, newer use cases, deeper penetration into the existing customer base, and cross-selling of our solutions," it said. "For this fiscal year, we project revenue growth of 45% to 55% over the previous fiscal year."
The company also reaffirmed its goal of doubling its revenue within the next two years and expects adjusted Ebitda to hold steady around current levels.
Avinash Godkhindi, managing director and chief executive officer of Zaggle Prepaid, told NDTV Profit that its year-on-year revenue growth exceeded his expectations due to the demand for digitization along with the benefits of being a market leader in the spend management space. He added, "We are tempted to up our guidance (revenue) depending on how Q2 goes."
On margins, he said that by FY28 they will be in the range of 15–16%, as opposed to the current 8.9%.
Shares of Zaggle Prepaid rose as much as 5.24% to Rs 353.55 apiece. It pared gains to trade 1.9% higher at Rs 342.4 apiece, as of 12:41 p.m. This compares to a 0.29% advance in the NSE Nifty 50 Index.
The stock has fallen 24.41% on a year-to-date basis and 21.25% in the last 12 months. Total traded volume on the NSE so far in the day stood at 2.3 times its 30-day average. The relative strength index was at 69.69.
One analyst tracking the company has a 'buy' rating for the stock, according to Bloomberg data. The average 12-month consensus price target implies an upside of 29.7%.
