Mobikwik Q2 Results: Net loss widens to ₹29 crore, revenue declines

One MobiKwik Systems Ltd., the parent company of payment solutions provider MobiKwik reported its September quarter results on Tuesday, November 4. In response, the stock was trading 4% lower today.MobiKwik reported a net loss of ₹29 crore for the September quarter. It had reported a net loss of ₹4 crore during the same quarter last year. MobiKwik’s net loss narrowed from the ₹41.9 crore it had reported during the June quarter.

On a year-on-year basis, the company’s losses widened due to exceptional provisions made to cover fraud-related losses.

MobiKwik made provisions worth ₹11.8 crore this quarter after detecting fraudulent transactions worth ₹40.4 crore in Q2 by certain users in Haryana. An FIR has been filed, and ₹21.9 crore has already been recovered, while another ₹6.6 crore has been secured through merchant affidavits and court orders.
The company is actively pursuing the recovery of the remaining ₹11.8 crore, which has been fully provided for under “exceptional items.”The company’s revenue from operations during the September quarter fell by 7% to ₹270 crore, compared to ₹291 crore during the same period last year. On a sequential basis, topline was flat as against ₹271.3 crore in the previous quarter.

MobiKwik’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) loss stood at ₹15.7 crore as against last year’s ₹4 crore last year.

Shares of MobiKwik fell to the day’s low post the earnings announcement and after some choppy moves, are currently trading with losses of 4.35% at ₹247.95. The stock remain below its IPO price of ₹279.