Paytm Q1 results: Net profit narrows to Rs 357 cr

One 97 Communications Ltd, the proprietor of fintech main Paytm, on Friday reported its internet loss narrowed to Rs 357 crore for the quarter ending June 30, 2023. It reported internet lack of Rs 644 crore within the year-ago interval.

Paytm’s income from operations rose 39% to Rs 2,342 crore in Q1FY24 as in comparison with Rs 1,680 crore in Q1FY23.

On Friday, Paytm’s scrip on BSE closed almost 1% decrease at Rs 843.55.

“Led by funds and mortgage distribution enterprise progress, our income jumped 39% YoY to Rs 2,342 crore and EBITDA earlier than ESOP grew to Rs 84 crore. We proceed to see constant progress in profitability, with contribution margin increasing to 56% of revenues,” mentioned Paytm in its earnings announcement.

The corporate’s service provider funds volumes (GMV) grew 37% YoY at Rs 4.05 lakh crore in June quarter. Its service provider base has expanded to three.6 crore, because of digital fee turning into mainstream and as demand for merchandise like Soundbox and POS machines enhance. Its service provider subscriber base has greater than doubled to 79 lakh as of June 2023. The corporate believes that India might have potential of 10 crore retailers accepting digital funds. “Contemplating this huge scale of alternative, and our capability to monetise them, we proceed to spend money on increasing our service provider buying gross sales groups with an addition of almost 10,000 members over final yr,” mentioned Paytm in Q1FY24 earnings launch.

In the meantime, its monetary companies income surged 93% YoY to Rs 522 crore in Q1FY24 on the again of rising credit score enterprise. In Q1FY24, Paytm distributed 1.28 crore loans, a rise of 51% YoY with worth of loans up considerably by 167% on yr to Rs 14,845 crore pushed by robust product choices throughout segments — Paytm Postpaid, Private Loans, and Service provider Loans. Additionally, the overall variety of distinctive debtors who’ve taken mortgage by way of the platform has elevated by 49 lakh during the last yr to 1.06 crore. In addition to, the corporate continues to monetise Paytm app site visitors in its Commerce and Cloud section by offering advertising companies to its retailers. In Q1FY24, Paytm’s Commerce & Cloud income grew by 22% YoY to Rs 405 crore.