Results for Paytm Q2: Net Loss Broadens to Rs. 571 Cr.; Revenue Increases by 76%
Results for Paytm Q2: Net Loss Broadens to Rs. 571 Cr.; Revenue Increases by 76%
One97 Communications, a provider of digital financial services that goes by the Paytm brand, exposed a more comprehensive consolidated loss for the three months ending in September 2022 on Monday. In the same time the previous year, the company had a net loss of 472.90 crore rupees.
However, it experienced a consecutive narrowing of its net loss. The largest fintech company in India reported a loss of 644.4 crores in six months.
On a year-over-year (Y-o-Y) basis, Paytm‘s combined operating revenues for the 2nd period of the fiscal increased by 76% to 1,914 crores from 1,086 crores. It is 14% more than the $1,679.60 crore revenue from the before quarter.
According to the firm, the revenue is driven by an increase in merchants’ subscription revenues, an increase in bill payments because the result of an increase in MTU, and an increase in loan disbursements made through our platform.
The street expected the provider of financial services and digital payments to show a 62.4% YoY revenue increase and a net loss of Rs. 596 crores.
According to the company, financial institutions and other business revenue was $349 crore, or 293% YoY, and now represents 18% of total income (up from 8% in Q2FY22). This growth was primarily attributable to sourcing and collecting fees in the loan wholesale business.
The platform’s ongoing growth across MTU (monthly transaction users), merchant base, subscription merchants, and GMV drove the company’s payments services revenue growth of 56% YoY. (gross merchandise value).
The GMV was 3.2 lakh crore in Q2 FY23, up 63% YoY. GMV increased by 8% on a quarter-over-quarter basis, with the growth in offline retailers and a rise in GMV from online sellers’ e-commerce—due to holiday sales.
According to the company, total loans disbursed in collaboration with lending partners during the quarter were 9.2 million (increased 224% YoY and 8% QoQ) and $7,313 crores (up 482% YoY or 32% QoQ).
The company’s stock closed at 652.00, up 0.25% from the previous day’s closing price of 649.80. “Early this year, we announced that thanks to increased monetization and moderated expenditure increases, we would attain a profitability ratio by September 2023. The financial results for the first quarter of the fiscal year 2023 show that our strategy is on track, with improvements in the unit economy, better expenditure control, and an exceeding mix of better profit business owners (like the financial products and commerce) leading us toward profitability, according to Paytm.
From Rs 1.5 lakh crore to Rs 3 crore in the June 2022 quarter, the gross merchandise volume more than doubled. Paytm’s monthly active users increased by 49% year over year to 7.48 crore. Loans granted through Paytm increased by over eight times during the quarter, from Rs 632 crore in the June 2021 qtr to Rs 5,554 crore.
Paytm stated in the financial results report that “disbursements in our loan wholesale business are annualizing at a roll of roughly Rs 24,000 crores, and we believe there is major room for upselling in this sector while being conservative on the integrity of the book.”
“The strong growth was pushed by an increase in merchant payments produced through the process of MDR tools like Paytm, Paytm bank balance, and all of the other important banks’ net banking, debits, and credit cards and the distinct disbursement of loans on the console and the healing pf commerce business from of the covid impact,” the company stated.
Additional information on Paytm
- After the platform of Nykaa, Paytm has the second-largest market valuation in the industry of business services and support at Rs 61,000 crore.
- The Paytm platform, which was launched on the stock market on November 18, 2021, has been the major IPO industry in India’s history. The stock was once more listed at Rs. 1,950 per share, which was 10% less than the share’s first issue price of Rs. 2,150. Since the company’s initial public offering (IPO), the claims of Paytm have traded at a discount of 104%, or Rs 953 a share, to the listing price.
Edited by Prakriti Arora
