Digital payments platform Paytm operator One 97 Communications on August 5 posted a consolidated loss of Rs 645.4 crore for the quarter ended June 2022, against a loss of Rs 382 crore logged in the corresponding quarter of the previous fiscal.
Consolidated revenue for the June FY23 quarter came in at Rs 1,679.6 crore, an 89 percent growth compared to Rs 891 crore reported in Q1 FY22.
EBITDA loss before employee stock ownership plan (ESOP) costs came in at Rs 275 crore, an improvement of Rs 57 crore as compared to Q1 FY22. The contribution of margins to revenues increased to 43 percent of revenues from 35 percent in the previous quarter i.e. Q4 FY22.
"We are confident that with continued revenue growth, increasing mix of higher margin businesses such as loan distribution, and better operating leverage, we will reach operating profitability (EBITDA before ESOP cost) by September 2023," the company said.
On the operating performance, Paytm in July said the total merchant gross merchandise value (GMV) processed through its platform for the quarter ending June FY23 stood at Rs 2.96 lakh crore, registering a 101 percent growth over year-ago period.
On the lending business, the company said it recorded total 8.5 million loan disbursals during the June FY23 quarter with growth of 492 percent YoY. The value of loans disbursed grew 779 percent YoY to Rs 5,554 crore during the quarter.
Disbursal of Paytm Postpaid loans grew by 486 percent YoY. Value of Paytm Postpaid loans disbursed saw a jump of 656 percent to Rs 3,383 crore from Rs 447 crore a year ago.
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"We are also seeing increases in average ticket size due to the scale-up of the personal loans business in particular," Paytm said.
The company further said the consumer engagement was at its highest on Paytm Super-App with average monthly transacting users (MTU) at 74.8 million for the quarter ending June FY23, up 49 percent YoY.
Revenue from payments services to merchants came in at Rs 557 crore, a YoY growth of 67 percent. Revenue from payments made by consumer on Paytm app saw a YoY growth of 73 percent, coming in at Rs 519 crore.
Revenue from financial services, primarily loan distribution as well as its stock broking and investment platform Paytm Money, saw the highest growth of 393 percent as compared to Q1 last year, coming in at Rs 271 crore.
Commerce and cloud services accounted for Rs 331 crore of revenues, a growth of 64 percent over last year.
Net payments margin for the quarter (defined as payments revenue less payment processing cost) has doubled to 35 percent of payments revenue, compared to 17 percent in Q1 FY22. The company said this was driven by continued growth in device subscription revenues, improved margins in online merchants business, and better negotiations with existing partners leading to reduction in payment processing charges.
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The stock fell 3.2 percent to close at Rs 783.65 on Friday, ahead of its quarterly earnings, while the performance since its listing on the bourses has been weak as the stock has lost more than 63 percent of its value from its issue price of Rs 2,150.
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