Paytm loss narrows to Rs 290 crore, revenue rises 32% on loan growth
Paytm’s direct expenses rose 2% YoY in Q2FY24 to Rs 1,093 while its indirect expenses shot up by 26% to Rs 1,273 crore. The firm’s total expense in Q2FY23 was Rs 2,081 crore.
NEW DELHI: On a total expense of Rs 2,366 crore, One97 Communications Ltd, the parent firm of Paytm, reported a revenue of Rs 2,519 crore (up 32% year-on-year) in the September quarter of fiscal 2023-24 (Q2FY24). Paytm had reported a revenue of Rs 1,914 crore in Q2FY23 and Rs 2,342 crore in Q1FY24.
Paytm’s direct expenses rose 2% YoY in Q2FY24 to Rs 1,093 while its indirect expenses shot up by 26% to Rs 1,273 crore. The firm’s total expense in Q2FY23 was Rs 2,081 crore. The fintech giant’s net loss (attributable to owners) narrowed down to Rs 290 crore in the September quarter. The same was Rs 357 crore in the June quarter and Rs 571 crore in the September quarter of last fiscal. Its EBITDA before ESOP (employee stock ownership plan) expense came at Rs 153 crore in Q2FY24, an improvement from (Rs 166 crore) in the year-ago quarter and its margin improved to 6% from -9%.
Of the company’s total revenue, the payment business contributed about Rs 1,524 crore and the loan distribution segment contributed Rs 571 crore. “For Q2 FY 2024, we continued our momentum with 32% YoY revenue growth, despite some of the revenues getting pushed to Q3 FY 2024…Revenue growth was led by an increase in GMV, merchant subscription revenues, and the growth of loans distributed through our platform.
There are no UPI incentives booked during the quarter,” the Noida-based company said. Paytm said that in Q2FY24, across their three product offerings (Paytm Postpaid, Personal Loans, and Merchant Loans), loans amounting to Rs 16,211 crore were distributed through the Paytm platform. The same was Rs 7,313 crore in the year-ago quarter. The number of loans distributed grew to 1.32 crore, a growth of 44% YoY.
Giving an update on Paytm Payments Bank Limited (PPBL), which was stopped by RBI to onboard new customers from March 11, 2022, the company said further supervisory engagement with RBI is still in progress. Paytm also said the RBI has levied a penalty amounting to Rs 5.39 crore on PPBL in respect of an order dated October 12, 2023.
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