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One97 Communications, the parent company of Paytm, disclosed its robust performance in the second quarter ending September 2023. The company reported a consolidated revenue of Rs 2,519 crore, marking a 32% increase compared to the previous year’s revenue of Rs 1,914 crore. This significant growth can be attributed to improved payment processing margins and a surge in loan disbursements.
The firm’s losses also showed substantial improvement, narrowing down to Rs 292 crore from a loss of Rs 571 crore in the previous fiscal year. This favorable trend was driven by overall direct expenses amounting to Rs 1,093 crore in Q2 of FY24.
In their BSE filing, the company stated, “For Q2 FY24, we continued our momentum with 32% YoY revenue growth, despite some of the revenues getting pushed to Q3 FY 2024. In this financial year, online sales for the festive season will be captured in Q3, whereas in the previous financial year, it was largely in Q2.”
On a quarterly basis, Paytm’s revenue in Q1 of FY24 saw a marginal 7% increase, totaling Rs 2,341 crore. The previous quarter had reported a loss of Rs 358 crore. Notably, the company’s ESOP expenses for the quarter amounted to Rs 385 crore, with total expenses increasing by 14% year-on-year to Rs 2,936 crore.
Paytm experienced a substantial boost in revenue from its payments business, surging by 28% to Rs 1,524 crore, while the net payment margin increased by nearly 60% to Rs 707 crore.
Furthermore, Paytm’s financial services revenue exhibited remarkable growth, showing a 64% year-on-year increase to Rs 571 crore. This was driven by the success and rapid growth of its lending marketplace platform. In the same quarter, the company’s overall loan disbursement reached an impressive Rs 16,211 crore, marking a nearly 122% increase. Merchant loans contributed Rs 3,275 crore, and personal loans contributed Rs 3,927 crore, while Postpaid Loans distributed amounted to Rs 9,010 crore.
Paytm’s credit portfolios, comprising Paytm Postpaid, personal loans, merchant loans, and co-branded credit cards, continue to thrive.
As of the quarter ending September 2023, Paytm’s cash balance has increased to Rs 8,754 crore, compared to Rs 8,367 crore as of the quarter ending June 2023.”
