Zinka Logistics Solutions Limited — Results, 10-07-2025: Reply to Clarification- Financial results

Zinka Logistics Solutions Limited has announced a board meeting on May 27, 2025, to consider the financial results for the quarter and half-year ended March 31, 2025.

**Financial Highlights (Standalone):**

- Revenue from operations for the year stood at Rs. 4,219.39 million, up from Rs. 2,963.84 million the previous year.

- Total income was Rs. 4,575.50 million.

- Expenses increased to Rs. 3,671.50 million from Rs. 1,651.91 million, driven by employee benefits and other operating costs.

- Exceptional items included IPO-related expenses of Rs. 264.37 million (partly adjusted against securities premium) and a significant share-based payment expense of Rs. 3,901.81 million related to past services.

- The company reported a profit of Rs. 2,806.62 million compared to a loss of Rs. 482.11 million in the prior year.

- Earnings per share (EPS) from continuing operations were Rs. 15.69 (basic) and Rs. 15.35 (diluted), compared to losses in the previous year.

- Discontinued operations (corporate freight business) reported a loss of Rs. 55.86 million for the year, with a net gain of Rs. 296.24 million from its sale in the prior year.

**Financial Highlights (Consolidated):**

- Consolidated revenue from operations was Rs. 4,267.28 million, up from Rs. 2,969.22 million.

- Profit from continuing operations was Rs. 2,857.56 million versus a loss of Rs. 480.32 million last year.

- EPS from continuing operations stood at Rs. 15.67 (basic) and Rs. 15.33 (diluted).

- Discontinued operations mirrored standalone results with a loss of Rs. 55.86 million.

- Segment-wise, truck operator services contributed Rs. 4,219.39 million in revenue and lending business Rs. 53.35 million.

- Segment EBITDA (adjusted) for truck operator services was Rs. 1,367.13 million, while lending business reported Rs. 20.23 million.

**Balance Sheet & Cash Flows:**

- Total standalone assets increased to Rs. 13,992.06 million from Rs. 6,480.22 million, reflecting IPO proceeds and business growth.

- Cash and cash equivalents stood at Rs. 970.37 million (standalone) and Rs. 1,044.93 million (consolidated).

- IPO proceeds of Rs. 5,500 million were raised, with Rs. 1,687.13 million utilized mainly for sales & marketing, NBFC subsidiary capital infusion, product development, and general corporate purposes. Unutilized proceeds are parked in fixed deposits and escrow accounts.

- Operating cash flow improved to Rs. 848.83 million (standalone) and Rs. 583.25 million (consolidated).

**Other Key Points:**

- The company completed conversion of compulsorily convertible preference shares into equity, increasing equity share capital.

- A waiver agreement with lenders led to a gain of Rs. 256.23 million recognized as an exceptional item.

- The corporate freight business was classified as discontinued following its sale in August 2024.

- The audit reports for both standalone and consolidated results were issued with unmodified opinions by Price Waterhouse Chartered Accountants LLP.

Overall, Zinka Logistics Solutions has shown a strong turnaround with profitability restored in FY25, supported by robust revenue growth in its core truck operator services and strategic capital infusion through the IPO. The company continues to invest in scaling its lending business and product development while optimizing costs.