Paytm Q2 losses narrow sequentially to Rs 571 crore

One 97 Communications (Paytm) on Monday reported a consolidated net loss of Rs 571 crore for the September quarter compared with Rs 644 crore in the June quarter and Rs 472.90 crore in the year-ago quarter. 

The company's revenue jumped 76 per cent year-on-year and 14 per cent quarter-on-quarter to Rs 1,914 crore with growth in lending, expansion in merchant subscriptions, and momentum in commerce and cloud with growth in advertising, resumption of ticketing volumes, credit cards and PAI cloud.

Paytm said sustained growth in revenue has led to expansion in contribution profit, leading to a 20 per cent YoY increase in contribution margin. 

The company’s contribution profit for the second quarter stood at Rs 843 crore, marking an increase of 224 per cent YoY and 16 per cent QoQ. 

EBITDA before ESOP cost improved by Rs 259 crore YoY and Rs 108 crore QoQ. 

In Q2 FY 2023, Paytm's EBITDA before ESOP was Rs 166 crore as compared to Rs 426 crore in Q2 FY2022 (61% improvement) and Rs 275 crore in Q1 FY2023 (39% improvement).

The company's loan distribution business has scaled up significantly over the last 12 months, seeing increased adoption by users. Number of loans at 9.2 million, up 224% YoY. 

The scrip closed at Rs 651.95 on BSE, up 0.27 per cent. 

Meanwhile, PB Fintech, the operator of Policybazzar, reported a narrowing of consolidated losses at Rs 186.64 crore for September quarter compared with Rs 204.33 crore in June and Rs 204.44 crore in the year-ago quarter.