Paytm's Consolidated Net Loss Narrows To Rs 357 Crore In Q1 FY24

Paytm reported a consolidated net loss of Rs 357 crore for the quarter ended June, showcasing a significant improvement from the Rs 644 crore loss reported in the same period last year. However, the loss widened when compared to the previous quarter (March quarter), where the company reported a net loss of Rs 168 crore.

Despite the widening loss, Paytm displayed strong revenue growth, with revenue from operations increasing by 39 per cent to Rs 2,342 crore in the June quarter, up from Rs 1,680 crore in the same period last year.

The first quarter's contribution profit demonstrated a rise of approximately 80 per cent year-on-year, reaching Rs 1,304 crore, with a margin of 56 per cent. Operating level performance also showed improvement, as EBITDA before ESOP stood at Rs 84 crore, with margins at 4 per cent, driven by an increase in contribution margin and operating leverage.

Paytm's payments business was a major driver of revenue growth, as revenue from this segment surged by 31 per cent year-on-year to Rs 1,414 crore during the June quarter. The company's gross merchandise value (GMV) also saw a substantial increase of 37 per cent YoY, reaching Rs 4.05 lakh crore.

The net payment margin for the payments business registered an impressive 69 per cent YoY growth, amounting to Rs 648 crore. Furthermore, the payment processing margin remained steady at the high end of the 7-9 basis points range (excluding UPI incentive, which was not recorded in this quarter).

Another noteworthy achievement was the increase in the number of merchant paying subscriptions for devices, which reached an impressive 79 lakh, indicating a substantial YoY growth of 41 lakh and a QoQ growth of 11 lakh.

The average monthly transacting users (MTUs) for the first quarter also showcased significant growth, increasing by 23 per cent YoY to reach 9.2 crore. This surge is attributed to the ongoing adoption of mobile payments by consumers.

The company's lending business has also shown remarkable progress, with Paytm distributing loans worth Rs 14,845 crore through its platform in the first quarter, marking a substantial YoY increase of 167 per cent.

Commenting on the financials, Paytm stated that the positive EBITDA before ESOP, improvements in working capital, and interest income contributed to the company's cash balance, which reached Rs 8,367 crore as of June-end, compared to Rs 8,275 crore as of March.

Paytm's shares closed 1 per cent lower at Rs 842.85 on the National Stock Exchange (NSE) on Friday.