MobiKwik Reports 1,000% Drop in Net Profit to ₹55 Cr in Q3, Revenue Falls 7%

The revenue from operations also decreased by 7 per cent quarter-on-quarter to Rs 291 crore in the July-September period, its exchange filing showed.

One MobiKwik Systems Limited on Tuesday reported a massive 1,000 per cent consolidated net loss at Rs 55 crore in the December quarter (Q3 FY25), as compared to the net profit of Rs 5 crore from the same period last year (Q3 FY24).

The revenue from operations also decreased by 7 per cent quarter-on-quarter to Rs 291 crore in the July-September period, its exchange filing showed.

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The total income of the company in Q3 FY25 stood at Rs 274 crore with a 6.48 per cent decline from Rs 293 crore in Q2 FY25. On the other hand, total expenses rose by 10.84 per cent in Q3FY25 at Rs 317 crore compared to Rs 286 crore in Q2 FY25.

This was mainly because of an increase in cost, as the profit before tax had fallen by 47.66 per cent to Rs 33.22 crore from Rs 63.47 crore in the preceding quarter. MobiKwik, which got listed on the stock exchanges in December, announced in a statement that it had signed a waiver agreement with one of its lending partners.

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In line with this arrangement, the firm agreed to skip income of Rs 24.21 crore on account of financial services for the quarter ending June 30, 2024. This income was adjusted during the September quarter against revenue on account of financial services, the company said in its filing. The company has incurred an EBITDA loss of Rs 43 crore. In fact, the decline was pretty significant since the EBITDA profit in the same period last year stood at positive Rs 10.8 crore and even during Q2 FY25 at Rs 6.8 crore.

The gross merchandise value for the payments segment stood higher compared to the last year at Rs 29,445 crore. However, compared to the previous quarter, the increment was almost subdued at a mere 4 per cent hike. As for the users, 5 million were added during the quarter, taking the count to 172 million.

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The company also increased its merchant network, with 1.1 lakh new merchants joining, raising the overall merchant base to 4.5 million. Shares were trading in the red post the Q3 earnings announcement with a 1.56 per cent decline at Rs 400.

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