Ebitda better gauge of firm's value: Pine Labs chair Rau

Pine Labs first reported a quarterly profit in April-June, the first three months of the fiscal year.

- Anshika Kayastha & Mansi Verma

Amrish Rau, chairman, Pine Labs.

While the second quarter earnings are awaited, chairman Amrish Rau says investors should weigh their interest in the firm's upcoming initial public offering (IPO) by its Ebitda (earnings before interest, taxes, depreciation, and amortization), which he believes is a better measure of the payments firm's value.

"We have been adjusted Ebitda positive for five consecutive years and we are one of the only companies to do it," says Rau, who is also the MD and CEO. The company's revenue has grown at over 20% for the last three years, says the chairman, adding that the adjusted Ebitda margin rose from single digit to 20% in the first quarter of this fiscal year.

Rau is, however, uncertain of when the business will become sustainably profitable. "There is no way in which I can time when PAT (profit after tax) positive actually happens," he told Mint.