One MobiKwik Systems (MOBIKWIK) Q4 21/22 earnings summary

Executive summary

• FY22 GMV rose 131% YoY to ₹345.3bn and revenue increased 80% to ₹5.27bn; contribution margin reached ₹1.47bn vs ₹354mn in FY21.

• Adjusted EBITDA loss narrowed to ₹726mn from ₹961mn, with EBITDA positive in Q3 and Q4 at ₹15mn and ₹6mn; reported consolidated loss widened to ₹1.28bn from ₹1.11bn.

• Payments and digital credit scaled alongside a 127mn registered-user base and 3.7mn merchant network; strategic priorities include extending credit products and developing a neobanking platform.

Financial highlights

• Consolidated revenue from operations was ₹5.27bn vs ₹2.89bn in FY21; total income was ₹5.43bn vs ₹3.02bn.

• Consolidated EBITDA loss was ₹1.09bn vs ₹1.02bn; adjusted EBITDA loss was ₹726mn vs ₹987mn, excluding share-based payments and goodwill impairment in segment reporting.

• Consolidated loss after tax was ₹1.28bn vs ₹1.11bn; basic and diluted loss per share was ₹23.04 vs ₹22.18.

• Operating cash outflow was ₹3.21bn vs ₹345mn; financing activities generated ₹3.29bn, including equity proceeds of ₹2.15bn.

• Contribution margin increased to ₹1,467mn from ₹354mn; revenue per employee was ₹13mn.

Outlook and guidance

• FY23’s first five months generated credit disbursals equal to all of FY22, with further credit-cost declines; credit offerings are expanding for consumers and merchants.

• Strategic direction is toward neobanking, building on payments, credit, deposits and investment products.

• Management expects operational growth and continued efficiency improvements; plans and projections support the going-concern basis despite losses and negative operating cash flows.