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Paytm Q3 results: Net loss widens to Rs 779 cr; revenue surges 89%

Paytm Q3 results: Net loss widens to Rs 779 cr; revenue surges 89%

The Vijay Shekhar Sharma-led company said that it continues to rapidly expand its customer and merchant base. 

Paytm Q3 results Paytm Q3 results

Fintech major Paytm's parent One 97 Communications on Friday reported a widening of consolidated net loss to Rs 778.5 crore for quarter ending 31 December, 2021. The firm had posted a loss of Rs 481.70 crore in the September quarter and Rs 535 crore in the year-ago period. 

The consolidated revenue from operations grew 89 per cent year-on-year (YoY) to Rs 1,456 crore in the quarter under review as compared with Rs 772 crore in the corresponding quarter last year. 

"The strong growth was driven by increase in merchant payments processed through MDR bearing instruments (Paytm Wallet, Paytm bank account, other banks netbanking, debit and credit cards), disbursements of loans on platform and recovery of commerce business from covid impact," the fintech company said in a regulatory filing.

Moreover, the contribution profit (defined as revenue from operations less payment processing charges, promotional cashback and incentives, and other direct costs) improved to 31.2 per cent of revenue in Q3FY2022 from 8.9 per cent in Q3FY21.

The company's EBITDA margin improved to (27 per cent) of revenues in Q3FY2022 from (63 per cent) of revenues in Q3FY2021, and (39 per cent) of revenues in Q2FY2022.

Average Monthly Transacting Users (MTU), the number of unique users with at least one successful payments transaction in a month, has grown by 37 per cent Y-o-Y to 64.4 mn in Q3 FY 2022.

Processing of merchant payments through all instruments (Paytm Wallet, Paytm Payments bank account, other banks netbanking, credit and debit cards, UPI etc) grew 123 per cent on-year.

The Vijay Shekhar Sharma-led company said that it continues to rapidly expand its customer and merchant base. 

It added that number of consumers on the platform is now over 350 million and the merchant base has expanded to 24.9 million (from 20.0 million a year ago). 

"Our customers are showing greater retention and higher engagement (measured by average GMV and transaction per customer)," it added. 

The Gross Merchandise Value (GMV) for the quarter under preview was 2.5 lakh crore. "We process payments from all instruments (which include Paytm Payment Instruments, netbanking, credit and debit cards, UPI) and we earn MDR on the transactions where payment is made through MDR bearing instruments. Our GMV from processing payments through MDR bearing instruments grew 77 per cent Y-o-Y."

Shares of Paytm on Friday closed 0.89 per cent higher at Rs 952.90 apiece on BSE.