SOURCE : NEW18 NEWS
Last Updated:January 20, 2025, 12:00 IST
Paytm Q3 Results: Paytm, operated by One97 Communications, reported a narrowed consolidated loss of Rs 208.3 crore; Shares rise
Paytm Share Price
Fintech giant One97 Communications, which operates the Paytm platform, reported on Monday that its consolidated loss for the December quarter narrowed to Rs 208.3 crore, compared to Rs 219.8 crore in the same period last year.
However, Paytm’s consolidated revenue from operations fell by 36% year-on-year (YoY) to Rs 1,828 crore, down from Rs 2,851 crore in Q3 of FY24.
related stories
On a quarter-on-quarter (QoQ) basis, Paytm’s revenue rose 10%, driven by higher GMV, strong growth in subscription revenues, and an increase in revenues from financial services distribution.
The company also reported a 5% QoQ increase in net payment margin, reaching Rs 489 crore, primarily due to higher subscription revenue.
Paytm’s performance saw a sequential reduction in its loss before exceptional items as the digital payments business rebounded from the winding down of its payments bank unit.
The company managed to cut its expenses by 31% YoY to Rs 2,219 crore.
At 10:40 AM on January 20, Paytm shares were trading 2.5% lower at Rs 880 each on the BSE.
During the quarter, Paytm completed the sale of its stake in Japan’s PayPay Corporation for $280 million (Rs 2,372 crore), with the carrying value of SARs as of September 30, 2024, at Rs 1,984 crore, leading to a reported gain of Rs 388 crore.
As a result, Paytm’s cash balance surged to Rs 12,850 crore, up from Rs 9,999 crore in the previous quarter.
Sale of Subsidiary
To simplify its corporate structure, Paytm’s subsidiary Mobiquest Mobile Technologies (Mobiquest) approved the sale of its wholly owned subsidiary, Xceed IT Solutions (Xceed), for a nominal consideration. Xceed had not conducted any business from FY 2023-25.
Revenue Breakdown
Of the total Rs 1,828 crore in revenue, Rs 1,003 crore came from the payments business (up 6% QoQ), Rs 502 crore from financial services (up 34% QoQ), and Rs 267 crore from marketing services.
As of December 2024, Paytm reported 1.17 crore merchant subscriptions, up by 5 lakh QoQ, with revenue per merchant increasing. The GMV also grew by 13%.
“As previously mentioned, we are refurbishing inactive devices and redeploying them with new merchants, a strategy we expect to continue for the next 1-2 quarters. This approach is leading to higher revenue per merchant and lower capex,” the company stated.
On the consumer payments front, Paytm’s Monthly Transacting Users (MTU) increased to 7.2 crore in December 2024, up from 6.8 crore in September, following the RBI’s approval to onboard new UPI customers in October.
Financial Services
In the financial services segment, Paytm attributed the revenue growth to a higher share of merchant loans, increased trail revenue from its Default Loss Guarantee (DLG) portfolio, and improved collection efficiencies. During the quarter, 5.9 lakh customers used Paytm for financial services, including loans, equity broking, and insurance. The company disbursed Rs 3,831 crore in merchant loans, a slight increase from the previous quarter, with a significant portion under the DLG model.
Paytm’s recalibration in personal loans continued as it adopted a distribution-only model and tightened risk policies with lenders. The company disbursed Rs 1,746 crore in personal loans during the quarter.
“We continue to see growing interest from lenders to partner with us under the DLG model for both Merchant and Personal Loans, which will help increase disbursements and expand partnerships with new lenders,” it added.
As of December 31, 2024, the outstanding AUM for DLG portfolios stood at Rs 4,244 crore, compared to Rs 1,651 crore on September 30, 2024.
