PickMe rides to highest quarterly operating profit, average daily platform activity

Thursday, 30 January 2025 00:04 - - {{hitsCtrl.values.hits}}

Digital Mobility Solutions Lanka PLC, owner of the popular PickMe service, has achieved its highest quarterly Group operating profit during October-December 2024, boosting its first nine months' figure to over Rs. 1 billion.

The company disclosed that third quarter operating profit grew by 45% to Rs. 396 million, whilst for the first nine months, it grew by 76% year-on-year (YoY) to Rs. 1.06 billion.

This growth was mainly attributable to volume-driven operating leverage.

The Group’s profit after tax for 3Q of FY25 increased by 38% to Rs. 293 million. The company recently paid its first interim dividend of Rs. 1 per share, resulting in a cash outflow of Rs. 333 million.

The Group’s revenue reached Rs. 4.1 billion for the first nine months of FY25, marking a 47% YoY increase. This revenue growth was primarily driven by a rise in platform usage, with a higher number of users contributing to increased volume.

The Group’s recorded net profit for the nine months of FY25 grew by 69% to Rs. 795 million. The expenses incurred during this period included one-off costs associated with the company’s IPO, following its listing on the Colombo Stock Exchange on 3 October 2024.

Group revenue for 3Q of FY25 grew by 41% to Rs. 1.5 billion. “This growth was primarily driven by a 35% YoY increase in transaction volumes, leading to the highest-ever average daily platform activity during this quarter. Moreover, the third quarter saw a 9% rise in activity compared to the second quarter of 2024/25,” the company added.

Digital Mobility Solutions Lanka PLC is a technological company that specialises in developing mobility-related software. The PickMe software facilitates a real-time connection between various stakeholders requiring mobility solutions, including independent third-party drivers, merchants, and consumers.

PickMe held its IPO at Rs. 36 per share (raising Rs. 1.58 billion via 43.474 million shares) and was oversubscribed by four times. The share price ended 3Q at Rs. 67.50, after a peak of Rs. 71 and a low of Rs. 38. Yesterday, the share price was at Rs. 80. Recently, the share price reached an all-time high of Rs. 89.80.

The public holding was 24% held by 2,397 shareholders.

As stated during the IPO, IFC, which held 47.3 million shares or 14% stake, had reduced it to 4.88% as at 31 December 2024. A decline in holdings by those prior to the IPO include Interblocks Holdings from 7.2% to 2.5% and H Capital from 3.4% to 2%.

CEO and Co-Founder Jiffry Zulfer continues to hold 35.8% stake, along with Chairman Ajit Gunewardene holding 9.4% stake, and LOLC Technology Services Ltd. holding 9.3%. Invenco Capital Ltd., on the other hand, increased its stake from 2.5% to 3.6%. Among the top 20 shareholders as at 31 December 2024 are K.T. Salie (1.44%), S.H. Amarasekera (1.34%), F. Kassim (1.23%), Norges Bank, Amaliya Ltd., Keith Modder, and Serendib Investments.

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