Paytm Q2 Results | Net loss shrinks to ₹291 crore, revenue up 32% to ₹2,519 crore

Fintech firm One97 Communications, which operates under the Paytm brand, on Friday (October 20) reported a loss of ₹290.5 crore for the second quarter that ended September 30, 2023. In the corresponding quarter last year, Paytm posted a net loss of ₹571.1 crore, the company said in a regulatory filing.

In the quarter, total revenue stood at ₹2,519 crore during the period under review, up 32% against ₹1,914 crore in the corresponding period of the preceding fiscal.

The company's Q2 FY24 Gross Merchandise Value (GMV) grew 41% year-on-year to ₹4.50 lakh crore. Despite no UPI incentives received during the quarter, the Payment Processing Margin is at the higher end of the 7-9 bps range due to an increase in GMV of non-UPI instruments like Postpaid, EMI, and cards, and improvements in payment processing margin on these non-UPI instruments.

As of September 2023, merchant subscriptions were 92 lakh, increasing 44 lakh year-on-year and 14 lakh quarter-on-quarter. Paytm sees sustained traction and we continue to earn ₹100 to ₹500 per month per device.

In Q2 FY24, revenue for financial services and others grew 64% year-on-year to ₹571 crore.

In Q2 FY24, the number of loans distributed through our platform grew to 1.32 crore, a growth of 44% year-on-year. The value of loans distributed grew to ₹16,211 crore, a growth of 122% year-on-year. The total number of unique users who have taken a loan through our platform has increased by 51 lakh over the last 1 year to 1.18 crore.

The number of postpaid loans distributed grew 44% year-on-year, while the value of postpaid loans grew 122% year-on-year. Penetration for postpaid is at 4.5% of MTU. The number of personal loans distributed grew 27% year-on-year, while the value of personal loans grew 91% year-on-year to ₹3,927 crore. The average ticket size is ₹165,000 with an average tenure of 16 months.

The number of Merchant Loans distributed grew 130% year-on-year in Q2 FY24, while the value of Merchant Loans grew 171% year-on-year to ₹3,275 crore.

In the second quarter, Paytm payments revenue grew by 28% year-on-year to ₹1,524 crore, despite some of the revenues getting pushed to Q3 FY24. In this financial year, online sales for the festive season will be captured in Q3, whereas in the previous financial year, it was largely in Q2.

The results came after the close of the market hours. Shares of One97 Communications Ltd ended at ₹987.35, up by ₹18.65, or 1.93 percent on the BSE.