Zaggle Prepaid share up 5% on posting 145% rise in Q2 profit, rev up 64%

Zaggle's consolidated profit rose 145 per cent to Rs 18.56 crore as compared to Rs 7.59 crore a year ago

Zaggle Prepaid Ocean Services shares rose 5 per cent on Thursday and registered an intraday high of Rs 431.2 per share on BSE. The company's stock was in demand after it reported a 145 per cent increase in Q2FY25 profit.

 

Around 11:14 AM, Zaggle Prepaid shares were up 3.85 per cent at Rs 426.5 per share on BSE. In comparison, the BSE Sensex was down 0.20 per cent at 77,532.51. The market capitalisation of the company stood at Rs 5,229.18 crore. The 52-week high of the stock was at Rs 493 per share on BSE and 52-week low of the stock was at Rs 207.5 per share.

 

Zaggle Prepaid reported its Q2 results on Wednesday after market hours. The company's consolidated profit rose 145 per cent to Rs 18.56 crore as compared to Rs 7.59 crore a year ago. 

The consolidated revenue from operations in the July-September period rose 64.2 per cent to Rs 303 crore from Rs 184 crore recorded in the year-ago period.

 

The company's Earnings before interest, tax, depreciation, and amortisation (Ebitda) grew 77.7 per cent and stood at Rs 26.71 crore as compared to Rs 15.03 crore a year ago. The company's Ebitda margins too rose 50 basis points (bps) to 8.8 per cent as compared to 8.2 per cent a year ago. 

 

"In line with our growth plans, we have taken approval from the board of directors for a fundraise of up to Rs 9,500 million (Rs 950 crore) subject to shareholders' approval," said Raj P Narayanam, founder and executive chairman, Zaggle Prepaid Ocean Services.

 

Narayanam added: The firm is increasing its guidance from 45-55 per cent to 50-55 per cent growth in topline for FY25, and is confident of doubling its FY24 revenues in the next two years. 

  Recently, the company's board approved fund raising of up to Rs 950 crore via qualified institutional placement. 

 

Zaggle Prepaid Ocean Services is a division or service offering of Zaggle, a prominent Indian fintech company. The Ocean Services segment of Zaggle is primarily focused on delivering advanced prepaid card solutions and financial management tools for businesses, particularly in areas like corporate employee benefits, expense management, and digital payment solutions. 

 

These services help companies streamline financial processes, improve employee experience, and provide more efficient ways to manage corporate spending.

 

In the past one year, Zaggle Prepaid shares have gained 62.4 per cent against Sensex's rise of 18 per cent.