Paytm Q3 net loss widens to Rs-778cr on higher expenses, but top line grows at impressive 88.6%

7 Feb 2022 , 09:00 AM

One97 Communications reported 88.61% growth in of total revenues for the Dec-21 quarter on consolidated basis at Rs1,456.1cr. On a sequential basis, the revenues were higher for the quarter by 34.03%.

During the quarter, Paytm witnessed 37% yoy growth in monthly transacting users (MTUs) at 64.4 million. The merchant gross merchandise value (GMV) improved 123% yoy to Rs250,000cr.

The total value of loans disbursed in Q3 increased 366% yoy at Rs2,181cr. Paytm has 350 million customers and 25 million merchants on Paytm.

The consolidated net loss widened yoy from Rs-535cr to Rs-778cr. During the quarter, the contribution profit was up 560% at Rs454cr. The EBITDA before ESOP cost narrowed to Rs-393cr from Rs-488cr last year.

On a yoy basis, the revenues from financial services has grown 3-fold to Rs125cr. In the last one year, the payment processing charges have been cut by 15 bps to 0.31% with technology upgradation.

Promotional cashbacks and incentives as a share of total revenues have fallen on yoy basis from 14.2% to a more reasonable 8%.

Financial highlights for Dec-21 compared yoy and sequentially

	One97 Communications
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 1,456.10	₹ 772.00	88.61%	₹ 1,086.40	34.03%
Net Profit (Rs cr)	₹ -778.40	₹ -535.00	N.A.	₹ -472.90	N.A.
Diluted EPS (Rs)	₹ -12.00	₹ -9.00		₹ -8.00
Net Margins	-53.46%	-69.30%		-43.53%