Paytm net loss narrows to ₹358 crore in Q1, revenues up 39% y-o-y

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One97 Telecomwhich owns the Paytm brand, reported a standalone net loss of Rs. 358 crore in the quarter of 30 June 2023. In the same last financial quarter, Paytm recorded a net loss of Rs. 645 crore.

You may recall that in the March 2023 quarter, Paytm posted a net loss of Rs 168 crore.

For the quarter under review, revenue under operations came to ₹2,342 crore, up 39 per cent over revenue of ₹1,680 crore in the same financial quarter last year. In the March 2023 quarter, revenue from operations was ₹2,334 crore.

EBIDTA before ESOP for the quarter under review was Rs.84 crore compared to (Rs.275 crore) (loss) in Q1 FY2023. In the March 2023 quarter, EBIDTA before ESOP was Rs.234 crore.

We’ve been increasing EBIDTA as we continue to invest for growth. Our indirect cost has increased predictably due to marketing costs related to IPL, impact of assessments, and expansion of sales and technology teams. In the coming quarters, we expect our underlying growth and operating leverage to continue to drive increased profitability despite the investments,” the company said in a stock filing late in the evening after a board meeting.

For the quarter ended 30th June 2023, the contribution profit was Rs. 1,304 crore, reflecting a growth of 80 per cent year-on-year. Contribution margin improved to 56 percent from 43 percent last year, due to an increase in net payment margin and growth in the loan distribution business.

As of June 2023, the value of loans distributed through the Paytm platform has reached ₹14,845 crore, up 167 percent year-on-year. The number of loans distributed through the Paytm platform has grown to Rs 1.28 crore, a growth of 51 per cent year-on-year.