The net loss of Paytm owner, One97 Communications narrowed to Rs 292 crore in July-September from Rs 572 crore in year-ago period. The company had posted a net loss of Rs 358 crore in the June quarter.
The improvement in bottomline was aided by a growth in revenue, which rose 32% year-on-year to Rs 2,519 crore in the September quarter. It rose 8% on a sequential basis.
Bloomberg had expected the company to post a net loss of Rs 285 crore in the quarter under review. It had expected the company to post revenue of Rs 2,564 crore.
Earnings before interest, tax, depreciation and amortisation before employee stock option cost improved to Rs 153 crore in the September quarter from Rs 84 crore a quarter ago.
The payments and financial services company offers various products like quick response codes, sound-based payment devices and mobile payments.
“The company expects the robust revenue growth to continue in October-December as online sales for the 2023 festive season will be captured in the next quarter,” the company said in an exchange filing.
The company’s growth momentum has been driven by an increase in merchant subscription revenue, jump in gross merchandise value, and growth in loan disbursements,” the release said.
Revenue from payments business rose 28% year-on-year to Rs 1,524 crore in the quarter under review.
Net payment margin rose 60% year-on-year to Rs 707 crore in the quarter under review.
Gross merchandise value rose 41% to Rs 4.5 trillion.
Payment processing margin is at the higher end of 7-9 basis points, the company said in a press release. Merchant paying subscription for devices rose 44% year-on-year to 9.2 million as of September 2023.
Revenue for financial services and others rose 64% to Rs 571 crore in the quarter under review. Total number of unique borrowers who have taken a loan through its platform stands at 11.8 million as on September 30.
The number of loans distributed through Paytm platform rose 44% to 13.2 million. Value of loans distributed rose 122% to Rs 16,211 crore.
Paytm partners with lenders to disburse loans.
In terms of volumes, Postpaid Loans distributed grew 44% year-on-year, personal loans rose 27% year-on-year, and merchant loans rose 130% year-on-year as on September 30.
In terms of value, Postpaid Loans distributed grew 122% year-on-year, personal loans rose 91% year-on-year, and merchant loans rose 177% year-on-year.
“With onboarding of Tata Capital, we now have 9 bank and NBFC partners across all our lending products (including credit cards). We continue to work closely with our existing partners, and are on track to add more partners in the remaining financial year,” the filing said.