Paytm Posts Q1 FY24 Revenue of Rs 2,342 Cr, Faces Rs 358 Cr Loss
According to Paytm’s consolidated quarterly report filed with the National Stock Exchange, the company’s revenue from operations in the first quarter of fiscal year ending June 2023 (Q1 FY24) showed minimal growth of only 0.3%. The revenue during Q1 FY24 amounted to Rs 2,341.6 crore, compared to Rs 2,334.5 crore in the previous quarter (Q4 FY23).
However, when compared to the corresponding quarter of the previous fiscal year (Q1 FY23), Paytm recorded a substantial growth of 39.4%. In Q1 FY23, the company’s revenue from operations was Rs 1,679.6 crore.
These figures indicate that while Paytm experienced a slight increase in revenue from the previous quarter, it achieved significant growth compared to the same period in the previous fiscal year. The fintech firm’s performance during Q1 FY24 reflects its efforts to expand its operations and capitalize on the growing demand for digital financial services in the market.
During the first quarter of fiscal year ending June 2023 (Q1 FY24), Paytm experienced significant growth in its payments business and financial services division.
The revenue from the payments business surged by 31% year-on-year (YoY) to reach Rs 1,414 crore. This increase indicates a growing demand for Paytm’s payment services, as more users continue to adopt digital payment methods.
Additionally, the gross merchandise value (GMV), which represents the total value of goods and services transacted through the platform, showed a robust growth of 37% YoY, amounting to Rs 4.05 lakh crore. This surge in GMV highlights the increasing usage and popularity of Paytm’s platform for various transactions.
Revenue from the financial services division, which includes the loan distribution business, saw remarkable growth, soaring by 93% YoY to reach Rs 522 crore. The loan distribution business has been witnessing significant expansion, with Rs 14,845 crore disbursed in loans during the quarter, marking an impressive 167% YoY growth.
In addition to its operating revenue, Paytm generated Rs 122.6 crore from other sources during the first quarter of fiscal year ending June 2023 (Q1 FY24). This additional revenue contributed to a total revenue of Rs 2,464.2 crore for the company during the same period.
During Q1 FY24, Paytm’s employee benefits costs constituted 39.5% of its total expenses. This cost saw a notable increase of 13.2% from the previous quarter (Q4 FY23), rising to Rs 1,106 crore from Rs 977 crore.
The increase in employee benefits costs reflects the company’s investment in its workforce and resources to support its expanding operations and growth initiatives. As Paytm continues to scale its business and diversify its offerings, it is likely to incur additional expenses related to talent acquisition, employee compensation, and other employee-related benefits to drive innovation and strengthen its market position.
During the first quarter of fiscal year ending June 2023 (Q1 FY24), Paytm witnessed changes in several of its major expense categories.
Payment processing expenses decreased by 1.76% to Rs 766.6 crore compared to Rs 780.3 crore in the previous quarter (Q4 FY23). This decline in payment processing expenses may be attributed to optimization and efficiency measures implemented by the company in managing payment-related costs.
Spendings on marketing and promotions, on the other hand, saw an increase of 29.73% to reach Rs 265.3 crore during the quarter. This rise in marketing and promotional expenses indicates Paytm’s efforts to boost brand visibility, attract new users, and retain existing customers through advertising and promotional campaigns.
In contrast, the IT infrastructure costs, including expenses related to software, cloud services, and data centers, reduced by 17.55% to Rs 155 crore in Q1 FY24 from the previous quarter. This decline in IT infrastructure costs may be attributed to optimizations in technology spending and improved operational efficiencies.
During the first quarter of fiscal year ending June 2023 (Q1 FY24), Paytm experienced a moderate increase in total expenses, which rose by 6.44% to Rs 2,800 crore compared to Rs 2,630.5 crore in the previous quarter (Q4 FY23).
Despite the flat topline (revenue) and the increase in expenses, Paytm reported a significant spike in quarterly losses. The losses surged over 2X to reach Rs 358.4 crore during Q1 FY24, compared to Rs 167.5 crore in the previous quarter. However, when compared to the corresponding quarter of the previous fiscal year (Q1 FY23), the company’s losses contracted by 44.5%, declining from Rs 645.4 crore.
During the first quarter of fiscal year ending June 2023 (Q1 FY24), Paytm’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) before ESOPs (Employee Stock Ownership Plans) was Rs 84 crore, which is a significant decrease from Rs 275 crore in the corresponding quarter of the previous fiscal year (Q1 FY23). This decline in EBITDA indicates that the company’s operating profitability before considering the impact of ESOPs has reduced during the current quarter.
However, on a positive note, Paytm’s cash balance improved to Rs 8,367 crore during the period, reflecting stronger liquidity for the company.
On a unit level, Paytm spent Rs 1.2 to earn a rupee of operating income during the quarter. This is calculated by dividing the total operating expenses by the operating income, indicating the efficiency of the company’s operations in generating revenue.
Additionally, Paytm granted new ESOP options to its employees under the ‘One 97 Employees Stock Option Scheme 2019’ on Friday. The value of these new ESOPs granted is estimated to be around Rs 145 crore, based on the company’s stock prices at that time.
