Paytm Q2 Results: Revenue increases 32%; loss shrinks to Rs 290 crore

23 Oct 2023 , 10:23 AM

Paytm, a key player in the fintech sector, reduced its losses year over year for the quarter that ended in September 2023 to Rs 290 crore from Rs 357 crore the quarter before that in June and Rs 571 crore the quarter before that.

During the reporting quarter, operating revenue increased 32% year over year (YoY) to Rs 2,519 crore. A year ago, the same was Rs 1,914 crore.

EBITDA (before ESOPs) increased to Rs 153 crore in the second quarter from Rs 84 crore in the first.

With a contribution margin of 57%, contribution profit for the reporting quarter increased 69% year over year to Rs 1,426 crore.

Payments business revenue surged 28% YoY to Rs 1,524 crore segmentally, while net payment increased 60% YoY to Rs 707 crore.

The payments segment’s gross merchandise value (GMV) increased 41% year over year to Rs 4.5 lakh crore.

At the end of the September quarter, the merchant paying subscriptions for devices reached 92 lakh.

Revenue from financial services and other sources climbed 64% year over year to Rs 571 crore in the loan distribution industry.

1.18 crore distinct individuals have used the Paytm platform to obtain loans. The loan disbursal increased by 122% year over year to Rs 16,211 crore as it continues to rise.

Online sales for the holiday season will be recorded in Q3 of this fiscal year, whereas they were mostly recorded in Q2 of the prior fiscal year.

According to Paytm, increases in GMV, merchant subscription revenues, and loans dispersed through its platform were the main drivers of overall revenue growth. During the quarter, no UPI rewards were booked.

As mobile payments are increasingly being used by Indian consumers, its average monthly transacting users (MTU) increased 19% YoY to 9.5 crore in the second quarter.

When compared to the quarter ending in June 2023, the company’s cash balance climbed to Rs 8,754 crore from Rs 8,367 crore.

After adjusting for funds used for buyback in Q3 and Q4 of FY23, which totalled Rs 1,056 crore, it has now increased cash balances for three straight quarters.

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