Paytm Q1 results: Loss narrows to Rs 358.4 crore, revenue jumps 39.4%

Posted on by

One97 Communications, which operates under the Paytm brand, on Friday narrowed the loss to Rs 358.4 crore.

The company recorded a loss of Rs.645.4 crore in the same period last year.

Revenue from the company’s operations increased by 39.4 per cent to Rs. 2,341.6 crore during the quarter reported from Rs. 1,679.6 crore in the June 2022 quarter.

The company said Merchant Payments Volume (GMV) grew by 37 per cent year on year to Rs 4.05 crore in the April-June quarter of the 2023-24 financial year.

“Paytm’s EBITDA before ESOP margin was 4 percent due to continued improvement in profitability due to strong revenue growth, increased contribution margin and operating leverage,” the release reads.

Paytm said that due to the increase in gross goods value (GMV) for non-UPI instruments such as EMI and cards, lower cost of exchange for the wallet, post-interoperability mainstreaming by the NPCI, and postpaid due to improved wallet quality, Paytm’s net payment processing margin has improved and is now in the upper end of the 7-9 basis points range.

Vijay Shekhar Sharma, Chairman of Paytm, Managing Director and CEO, Vijay Shekhar Sharma said that the bank has submitted a compliance report to the banking regulator and the same is under review.

During the financial year (FY) 2022, the Reserve Bank of India (RBI) has directed Paytm Payments Bank (PPBL) to stop onboarding new customers from March 1, 2022.

During the financial year 2023, the Reserve Bank of India appointed an external auditor to conduct a comprehensive audit of the PPBL regulations.

On 21st October 2022, PPBL has received its final report from the Reserve Bank of India (RBI) outlining the need to further enhance the IT outsourcing and operational risk management processes, including KYC and others in the bank.

Pursuant to the supervisory engagement thereafter, the RBI recommended that the action steps (including other steps to be taken by the bank) be addressed in a time-bound manner.

Sharma said the bank has provided compliance with the RBI instructions and the RBI is currently reviewing the same.”