Paytm Q3 results: Loss narrows to Rs 220 cr, revenue jumps 38%
Paytm's Q3 revenue rises on strong payments business, loan growth
- Jan 19, 2024,
- Updated Jan 19, 2024 5:52 PM IST
One 97 Communications Ltd, the parent of fintech firm Paytm, reported a 38% rise in third-quarter revenue on Friday, helped by its payments business and strong loan growth in the financial services segment.
Consolidated revenue rose 38% to Rs 2,851 crore for the October-December quarter from Rs 2,062 crore a year earlier.
The company, which has not posted a net profit since it went public in November 2021, said its consolidated net loss narrowed to Rs 220 crore from Rs 392 crore a year ago.
"For Q3F24, Paytm reported 38% YoY revenue growth, due to accelerated GMV (gross merchandise value) growth, higher device addition, and growth of financial services business. This was partly boosted by the timing of festive seasons (online sales for the festive season were in Q3, whereas in the previous financial year it was largely in Q2). Net payment margin has gone up 63% YoY to Rs 748 crore due to increase in payment processing margin and increase in merchant subscription revenues," said the firm in a stock exchange filing.
"Financial services take rate has improved QoQ due to higher proportion of merchant loans and personal loans distribution (post-paid loans reduced QoQ as communicated in the December 6, 2023 update) and increasing revenue from insurance distribution business. Average ticket size of merchant Loan and personal will continue to increase further as proportion of high ticket loans continue to increase," the firm added.
Last month, Paytm announced scaling down its focus on small-ticket loans of less than Rs 50,000 which predominantly comprise its postpaid loan business.
"EBITDA before ESOP up Rs 188 crore YoY to Rs 219 crore (margin of 8%, up 6 percentage point YoY) on back of growth and operating leverage," said Paytm in its Q3 update.
On Friday, Paytm's scrip on BSE closed trading 1.66% higher at Rs 766.2.
Paytm said it distributed loans worth Rs 15,535 crore in Q3, a rise of 156% on an annual basis. "As of December 2023, our lending partners have distributed loans through our platform to 1.25 crore unique Paytm consumers and merchants. Paytm active user and MTU base offers us tremendous upsell and lifecycle benefits across financial services," said Paytm.
One 97 Communications Ltd, the parent of fintech firm Paytm, reported a 38% rise in third-quarter revenue on Friday, helped by its payments business and strong loan growth in the financial services segment.
Consolidated revenue rose 38% to Rs 2,851 crore for the October-December quarter from Rs 2,062 crore a year earlier.
The company, which has not posted a net profit since it went public in November 2021, said its consolidated net loss narrowed to Rs 220 crore from Rs 392 crore a year ago.
"For Q3F24, Paytm reported 38% YoY revenue growth, due to accelerated GMV (gross merchandise value) growth, higher device addition, and growth of financial services business. This was partly boosted by the timing of festive seasons (online sales for the festive season were in Q3, whereas in the previous financial year it was largely in Q2). Net payment margin has gone up 63% YoY to Rs 748 crore due to increase in payment processing margin and increase in merchant subscription revenues," said the firm in a stock exchange filing.
"Financial services take rate has improved QoQ due to higher proportion of merchant loans and personal loans distribution (post-paid loans reduced QoQ as communicated in the December 6, 2023 update) and increasing revenue from insurance distribution business. Average ticket size of merchant Loan and personal will continue to increase further as proportion of high ticket loans continue to increase," the firm added.
Last month, Paytm announced scaling down its focus on small-ticket loans of less than Rs 50,000 which predominantly comprise its postpaid loan business.
"EBITDA before ESOP up Rs 188 crore YoY to Rs 219 crore (margin of 8%, up 6 percentage point YoY) on back of growth and operating leverage," said Paytm in its Q3 update.
On Friday, Paytm's scrip on BSE closed trading 1.66% higher at Rs 766.2.
Paytm said it distributed loans worth Rs 15,535 crore in Q3, a rise of 156% on an annual basis. "As of December 2023, our lending partners have distributed loans through our platform to 1.25 crore unique Paytm consumers and merchants. Paytm active user and MTU base offers us tremendous upsell and lifecycle benefits across financial services," said Paytm.