Zaggle Prepaid woos Street with strong Q3 results; shares hit all-time high

Zaggle Prepaid Ocean Services shares registered a record high on Wednesday after the company reported a strong set of quarterly numbers with margin entering double digits, on the back of healthy overall growth amid easing finance costs. The stock jumped by as much as Rs 42.2, or 18.2 per cent, to an all-time high of Rs 274, surpassing an earlier peak of Rs 266.4 registered in November last year.

The Zaggle stock held on to much of its intraday gains in afternoon deals.

At 1:30 pm, Zaggle shares were up 16.9 per cent for the day at Rs 271.1 apiece on the bourse, trading with high volumes. As many as 9.9 lakh shares changed hands in intraday trade so far, as against a daily average of 84,000 recorded in the past two weeks, according to provisional exchange data.  

After market hours on Tuesday, the company reported a 15-times jump in net profit to Rs 15 crore for the quarter ended December 31, 2023 compared with the corresponding period a year ago. 

Its revenue increased 35.1 per cent on a year-on-year basis to a record Rs 200 crore, and earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 2.7 times to Rs 21 crore, according to a regulatory filing. 

Zaggle's margin, a key measure of profitability, more than doubled to 10.5 per cent for the fiscal third quarter from 5.2 per cent a year ago. 

“I am thrilled to share that we reported our highest-ever quarterly revenues with healthy growth across all profitability metrics... Our record-breaking performance is a result of our product portfolio's strategic diversification and the successful launch of credit card offerings," said Raj P Narayanam, Founder and Executive Chairman, Zaggle Prepaid Ocean Services. 

"We see encouraging momentum in our business and are dedicated to maintaining the upward trajectory. Our unwavering commitment to innovation and excellence shall foster growth, solidifying our position as a leader in the industry," Narayanam added.

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