Paytm reports 38% revenue growth in Q3 FY24, losses down
One97 Communications, Paytm's parent company, experienced a 38% increase in consolidated revenue for Q3, ending December 2023. The revenue rose to Rs. 2,850 crore from Rs. 2,062 crore during the same period last year, primarily due to the festive season. Additionally, the company's losses decreased to Rs. 221 crore, compared to Rs. 392 crore in the previous financial year. Paytm's revenue saw a modest 13% quarterly increase, while its loss was reduced by 23%.
Payment business and financial services update
Paytm's payment business generated Rs. 1,730 crore in revenue, a 45% YoY growth, driven by a rise in gross merchandise value (GMV) and much higher subscription revenue. The net payment margin improved by 63% YoY to Rs. 748 crore in Q3 FY24. Payment margins rely on earnings from non-UPI instruments like EMI, post-paid, and cards, as well as subscription fees on devices sold to merchants.
Merchant subscriptions touch the 1 crore mark
As of December 2023, Paytm's merchant subscriptions reached 1.06 crore, a YoY increase of 49 lakh. Despite limiting post-paid loans under Rs. 50,000 from December 1, Paytm's overall financial services revenue saw a minor impact. It reached Rs. 607 crore - a 36% increase compared to the previous quarter. In Q3 FY24, Paytm disbursed loans worth Rs. 15,535 crore, a 63% YoY increase.
A look at One97 Communications's share prices
One97 Communications opened at Rs. 760.50 per share on the National Stock Exchange (NSE) and touched a high of Rs. 789. It ended at Rs. 766.20 per stock, a high of 1.58% compared to yesterday. On the BSE, it opened at Rs. 761.10 and finished at Rs. 773.90, which is a high of 2.55%.
