Paytm reports 32% jump in revenue to Rs 2,519 cr in Q2FY24, loss narrows to Rs 292 cr
Mumbai: One97 Communications, the parent company of Paytm, posted a consolidated revenue of Rs 2,519 crore for the second quarter ending September 2023, indicating a 32 percent increase compared to Rs 1,914 crore in the previous year, media reported.
The jump in revenue came as the company improved payment processing margins and expanded loan disbursement.
The company also reduced its losses from Rs 571 crore in the previous financial year to Rs 292 crore in the current period, largely due to total direct expenses amounting to Rs 1,093 crore in Q2 of FY24, reported MoneyControl.
In the first quarter of FY24, Paytm experienced a modest 7 percent rise in revenue, reaching Rs 2,341 crore. During the same period, it reported a loss of Rs 358 crore.
Notably, the company's ESOP expenses in this quarter amounted to Rs 385 crore.
Its total expenses for this period reached Rs 2,936 crore, indicating a 14 percent YoY increase.
Within its payments business, Paytm observed a notable 28 percent surge in revenue, reaching Rs 1,524 crore.
The net payment margin also saw a substantial rise of almost 60%, reaching Rs 707 crore, attributed to the growth in merchant subscription revenues and the increase in loan disbursal.
In the reviewed quarter, Paytm witnessed a substantial surge in its total loan disbursement, reaching Rs 16,211 crore, marking an impressive 122 percent increase.
Notably, merchant loans accounted for Rs 3,275 crore, while personal loans contributed Rs 3,927 crore. The distribution value of Postpaid Loans stood at Rs 9,010 crore.
Paytm manages four distinct credit portfolios, including Paytm Postpaid, personal loans, merchant loans, and co-branded credit cards.
Furthermore, the company's cash reserves have seen an uptick, standing at Rs 8,754 crore as of September 2023, compared to Rs 8,367 crore at the end of June 2023.
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