Pine Labs' India, Singapore entities report higher FY24 losses as expenses rise

Pine Labs' India and Singapore entities reported a slight increase in revenue in FY24 but were bogged down by a significant rise in expenses, leading to a much larger loss.

Pine Labs is registered in Singapore and files separate financial results for Indian and overseas entities.

Pine Labs Singapore

The Singapore arm saw a 9.77% year-on-year (YoY) rise in revenue to Rs 1,743 crore in the financial year ended March 31, 2024, but escalating costs led to a 49.28% YoY increase in net loss, which ballooned to Rs 339.63 crore.

In FY23, it earned Rs 1,588.10 crore in revenue.

Cost of sales, a key component directly tied to revenue generation, rose by 21.32% to Rs 934.61 crore in FY24, compared with Rs 770.31 crore in FY23. Consequently, gross profit—a critical measure of operational efficiency—declined marginally by 1.11% YoY.

Selling and marketing expenses rose by 6.30% YoY, reaching Rs 469.77 crore in FY24 compared with Rs 441.91 crore in FY23. Investment in technology and product improvements grew by 14.06% YoY, totalling Rs 352.73 crore in FY24.

The company’s operating loss for FY24 widened by 13.01%, amounting to Rs 378.40 crore, up from Rs 334.83 crore in FY23. The net loss also ballooned by 49.28% YoY.

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Pine Labs India

The Indian entity's revenue from operations rose by 2.88% YoY to Rs 1,317.47 crore in FY24, up from Rs 1,280.54 crore a year ago, as per filings with the Registrar of Companies.

However, total expenses surged by 15.79%, reaching Rs 1,623.87 crore compared with Rs 1,402.43 crore the previous year.

While employee benefit expenses also saw a modest increase of 3.08% YoY, other expenses climbed by 15.68%, standing at Rs 554.41 crore for the year, up from Rs 479.25 crore the previous year.

The major contributor to the swelling expenses were the advertisement and promotional costs, which shot up 72.4% YoY to Rs 73 crore in the fiscal year 2024. Legal professional charges also spiked by 12% YoY to Rs 128 crore.

As a result of the rising costs and tax expenses, Pine Labs posted a loss of Rs 187.17 crore in FY24, a more than 3X increase from the Rs 56.24 crore loss incurred in FY23.