PickMe owning firm reports impressive results; declares one Rupee interim dividend

Wednesday, 6 November 2024 00:22 - - {{hitsCtrl.values.hits}}

Newly listed Digital Mobility Solutions Lanka Ltd., (PickMe) has reported a group’s revenue of Rs. 1.39 billion in the 2Q of FY 2024/25 an increase of 47% from a year ago.

The company also announced a one rupee interim dividend for FY25. The company said the increase in revenue was driven by volume growth. Total movements facilitated on the platform during the second quarter of 2024/25 increased by 42% against the total movements recorded in the corresponding period of the previous financial year. Further total movement during the second quarter of 2024/25 was an increase of 15% against the total movements reported in the first quarter of 2024/25. The average movements per day facilitated on the platform during the second quarter of 2024/25 was at an all-time high.

The group converted the strong top line growth into solid profitability, with an all-time high quarterly operating profit of Rs. 378 million in the second quarter of 2024/25, reflecting an increase of 123% against the operating profit of Rs. 170 million reported in the second quarter of 2023/24. The operating profit margin improved to 27% in the second quarter of 2024/25, reflecting a 923bps growth against the operating profit margin of 18% reported in the corresponding period in the previous financial year. The improvement in operating profit margin is mainly attributable to volume growth driving operating leverage and the favourable currency movement resulting in lower IT infrastructure cost.

The group’s net profit of Rs. 280 million in the second quarter of 2024/25 was an increase of 108% when compared to the net profit of Rs. 134 million reported in second quarter of 2023/24. Further this was a 26% increase to the net profit of Rs. 222 million reported in the first quarter of 2024/25.

The group’s revenue of Rs. 2.58 billion during the first half of 2024/25 was a 51% increase to revenue reported of Rs. 1.71 billion in the first half of the previous financial year. The growth in revenue was driven by volume growth during the period, which was driven primarily by a higher number of users on the platform.

The group’s operating profit increased by 103% to Rs. 670 million (26% of revenue) during the first half of 2024/25 when compared to the operating profit of Rs. 330 million (19% of revenue) reported in the first half of the previous financial year. The improvement in operating profit and operating profit margin was attributable to volume lead operating leverage and the favourable currency movement.

The group reported a net profit of Rs. 502 million (19% of revenue) in the first half of 2024/25, which is an increase of 93% against the net profit reported of Rs. 260 million (15% of revenue) in the first half of the previous financial year.

The company said it will continue to invest in growth opportunities that align with its strategic goals and offer the potential for higher returns. Taking into consideration the healthy reserve position and the company’s growth plans, the board has decided to declare an interim dividend of one rupee per share for FY25. The company’s inaugural dividend declaration is a significant milestone in its nine-year history and is a testament to the company’s commitment to shareholder value and financial discipline.

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