Paytm Q1 FY2024 Financial Report: Paytm’s Revenue Soars 40%, Halves Losses

Leading Indian digital payment platform, Paytm, has announced an impressive 39.4% rise in its revenue for Q1FY2024, growing to Rs 2,341 crore from Rs 645 crore in the same quarter of the previous year. The company also managed to cut down its losses by 45% to Rs 358 crore during the same period.

Paytm Q1 FY2024 Financial Report: Key Points

• Paytm reported a 39.4% rise in revenue in Q1FY24, reaching Rs 2,341 crore, while successfully cutting losses by 45% to Rs 358 crore.
• The company’s loan distribution business and increased merchant subscriptions (up 16.2% YoY to 79 lakh) significantly contributed to the robust performance.
• Paytm’s revenue from its payment business and financial services grew 31% and 93% respectively, bolstering the net payment margin by 69% YoY.
• The digital payments platform saw its monthly transacting user base increase by 23% YoY, reaching 9.2 crore users, with GMV growing by 37% YoY.

The robust financial performance can be attributed to the flourishing loan distribution business and the growing merchant subscriptions for Paytm’s devices, which saw an increase from 68 lakh in Q4FY23 to 79 lakh in Q1FY24.

Paytm’s overall financial metrics appear to be improving, with the net payment margin bolstered by the rise in merchant subscription revenues. Furthermore, the company’s payment processing margin improved due to non-UPI transactions such as card and EMI instruments growing relatively faster for the company.

Revenue from Paytm’s payment business saw a jump of 31% to Rs 1,414 crore during the quarter. The company reported a year-on-year increase in net payment margin of 69% to Rs 648 crore.

Meanwhile, the company’s financial services revenue, including its rapidly growing lending marketplace platform, reported a substantial YoY increase of 93%, generating Rs 522 crore.

Paytm’s credit distribution business also showed impressive growth, with a YoY growth rate of 167% for the June quarter, disbursing loans worth Rs 14,845 crore. The company facilitates loans on its platform and earns a commission from distributing credit. The number of loans facilitated on the payments platform rose to 1.28 crore, marking a 51% increase.

The company saw its GMV (Gross Merchandise Value) for the June quarter rise to Rs 4.05 lakh crore, a YoY growth of 37%. The platform also witnessed a 23% YoY rise in its monthly transacting user base, reaching 9.2 crore.

Paytm continues to hold the third spot in India’s UPI ecosystem with over nine billion monthly transactions and close to Rs 15 lakh crore in transaction value.

Paytm Q1 FY2024 Financial Report: Summary Table

Paytm’s parent company, One97 Communications Ltd’s shares closed at Rs 843.55 a piece on the BSE on July 21, marking a 0.89% drop from the previous close.

Check latest earning reports summarised:

• Ultratech Cement Q1 FY2024 Earnings Revealed
• Vedanta’s Q1 FY2024 Financials: Net Profit Plunges 40%, Revenue Down 13%
• Union Bank of India (UBI) Q1 FY2024 Earnings Report Analysis: Standalone Net Profit Doubles to ₹3,236 Crore

Author: Sanjib SahaSanjib is a finance based writer who has a deep knowledge in stock market, cryptocurrency and mutual funds. He is also a co-founder of Financesrule.com

Twitter