Paytm Q2 Results: Net Loss Widens To Rs 571 Crore, Logs 76 Per Cent Rise In Revenue

Paytm’ revenue rose to Rs 1,914 crore ($233.81 million) in the July-September quarter from Rs 1,086 crore a year earlier

Paytm, the Indian digital payments company, logged a 76 per cent jump in second-quarter revenue, helped in part by a surge in loan growth, according to a report by news agency Reuters. Paytm’s parent firm, One 97 Communications, said the company would turn profitable by September 2023.

According to the report, Paytm’ revenue rose to Rs 1,914 crore ($233.81 million) in the July-September quarter from Rs 1,086 crore a year earlier.

The company’s consolidated net loss widened to Rs 571 crore from a loss of Rs 473 crore a year earlier, as expenses related to employee benefits and payment processing charges surged, the company said in an exchange filing. The revenue jump in the reported quarter was lower than the 88.5 per cent increase Paytm posted in the first quarter.

Revenue from the company’s core business of payments services — consumers and merchants using the app and from device subscriptions — rose 55.6 per cent in the second quarter (Q2) to Rs 1,173 crore.

Its net payments margin, or payments revenue less processing costs, rose 15 per cent to Rs 443 crore from the immediately previous quarter. Paytm’s average monthly transacting users rose 39 per cent from a year earlier.

Paytm said that its revenue from payment services to consumers increased by 55 per cent to Rs 549 crore on year-on-year (YoY) basis, while payment services to merchants went up by 56 per cent to Rs 624 crore YoY. “This was achieved without any UPI incentive during the quarter,” the company said.

The company's net payment margin (calculated as payments revenues plus other operating revenues, less payment processing cost) increased multi-fold to Rs 443 crore on year-on-year basis on account of improved monetisation and continued focus on reduction in payment processing charges.

Revenue at the company's fast-growing financial services business — primarily buy-now-pay-later, personal and merchant loans — nearly quadrupled to Rs 349 crore.

Loan disbursement surged to Rs 7,313 crore in the reported quarter, the company said last month.

The company said it does not have a “firm timeline” on when Paytm Payments Bank will be allowed to onboard new customers following a ban by the Reserve Bank of India (RBI) in March.

The company added that the central bank’s observations were largely around strengthening of IT outsourcing processes and operational risk management.