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breaking news Loss widens to Rs 473 crore even as income rises 64% to Rs 1,086 crore

Paytm published its results for the quarter ended September 30, 2021 on Saturday. The digital payments company saw losses rise in the second quarter to 473 crore, 24 percent sequentially and 8.5 percent annually, as expenses increased.

The company also saw a small drop in contribution margin to 23.9 percent, down from 27.4 percent in the June quarter. The benefit of the contribution stood at Rs 260 crore, compared to Rs 244 crore in the previous quarter.

Paytm’s operating income for the second quarter of the fiscal year increased 63.6 percent to Rs 1,086.4 crore on a yoy (yoy) basis. It is 22 percent higher than the revenue of Rs 890.8 crore in the previous quarter.

Paytm’s contribution to earnings rose as much as 592 percent year-on-year to Rs 260 crore due to the monetization of a large distribution base through high-margin offerings such as loans, advertisements and commercial offers, the firm said in a regulatory filing.

The company’s EBITDA (earnings before interest, taxes, depreciation and amortization) loss was Rs 452.4 million, compared to a loss of Rs 445.6 million (YoY) and a loss of Rs 371 million. (quarterly).

Commenting on the result, Paytm said: “Payment and financial services revenue increased 69 percent year-on-year to Rs 8,426 million, driven by 52 percent growth in non-UPI (GMV) payment volumes and the growth of financial services and other income by more than 3 times “.

Revenue from payment services to customers increased 54 percent year-on-year to Rs 3.53 million, while revenue from payment services to merchants increased 64 percent year-on-year to 400 million rupees.

The company’s marketing expenses increased to Rs 185 crore, 35 percent qoq and 36 percent yoy. Its employee expenses also rose to 386 million rupees, 10 percent more than the previous quarter.

Paytm revealed certain key metrics last week, showing that its gross merchandise value (GMV) in October stood at Rs 83,200 crore, an increase of 131 percent year-on-year. GMV for the second quarter of fiscal year 22 stood at Rs 1.95 lakh crore, a year-on-year increase of 107 percent.

Meanwhile, monthly transaction users in October stood at 63 million, up 35 percent from the previous year, and also down from 57 million in the second quarter.

Paytm also saw growth in its loan business, with 1.3 million loans disbursed in October, while in the second quarter, the company disbursed 2.8 million loans.

The company said GMV’s non-UPI growth has fueled continued payment revenue growth, and UPI-led payment volume growth is translating into a significant increase in its financial services offering.

“We are driving the penetration of digital payments and financial services and widespread adoption across India. Paytm has experienced a strong second quarter of fiscal 22, which is a testament to the strong bilateral ecosystem of consumers and merchants that we have built. We have maintained the growth momentum in our payments services business, we expanded our financial services business aggressively and we are on track to reach pre-COVID volumes for commerce and cloud services, ”he added.

(Edited by : Kanishka sarkar)

First published: IST



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