India's Pine Labs profit jumps four-fold as digital payments adoption increases
India's Pine Labs profit jumps four-fold as digital payments adoption increases July 28 (Reuters) - Indian fintech firm Pine Labs PINL.NS on Tuesday posted a more than four-fold increase in first-quarter profit, driven by increased adoption of digital payments and the underlying infrastructure in the country.
The company's consolidated profit rose to 195.7 million rupees ($2.04 million) in the April-June quarter, from 47.9 million rupees last year.
The growing adoption of digital payments by both consumers and merchants, as well as India's unified payments interface (UPI), has aided Pine Labs' growth, the company said.
Revenue from operations rose 19.6% in the quarter.
Revenue from the company's digital infrastructure and transaction platform, which is largely monetized through subscriptions and transaction fees, rose nearly 15% to 4.99 billion rupees.
Revenue from its issuing and acquiring platform segment, which helps banks and fintech companies issue credit and debit cards, rose 31%.
Expenses rose 10.6% in the quarter, largely due to employee benefit costs.
Pine Labs' shares jumped after the results, closing 3.6% higher.
($1 = 95.7725 Indian rupees)
(Reporting by Abhirami G in Bengaluru; Editing by Sonia Cheema)
((abhirami.g@thomsonreuters.com))
Recent news on Pine Labs
See all newsBrief: Pine Labs Invests 250 Million Rupees In Unit Synergistic Financial Networks
Payment firms slide after sources say India considers delay in merchant fee plan
Brief: Pine Labs Announces Strategic Collaboration With Google Cloud In India
Analysis: Big to get bigger: India's UPI fee shift to entrench dominant incumbents
India's Paytm, Pine Labs rise after J.P. Morgan raises target price