Firm Posts Net Loss Of Rs 778 Crore, Revenue Jumps 89 Percent To Rs 1,456 Crore

Financial technology firm Paytm’s parent One 97 Communications on Friday reported a consolidated net loss of Rs 778 crore for the third quarter ended December 31, 2021. In the September quarter, the company posted a loss of Rs 482 crore.

The consolidated revenue from operations for the quarter climbed 89 percent YoY to Rs 1,456.1 crore from Rs 772 crore in the same quarter last year, driven by growth in merchant payments through MDR bearing instruments, new device subscriptions, and loan disbursements.

The contribution profit (defined as Revenue from operations less payment processing charges, promotional cashback and incentives, and other direct costs) improved to 31.2 percent of revenue in Q3 FY22 from 8.9 percent in Q3 FY21.

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The EBITDA margin improved to 27 percent of revenues in Q3 FY22 from 63 percent of revenues in Q3 FY21, and 39 percent of revenues in Q2 FY22. Average Monthly Transacting Users (MTU), the number of unique users with at least one successful payments transaction in a month, has grown by 37 percent YoY to 64.4 million in Q3 FY22.

The company said, “Number of consumers on our platform is now over 350 million and our merchant base has expanded to 24.9 million (from 20.0 million a year ago). Our monthly transacting users (MTU) grew consistently over this fiscal year. The average monthly transacting users (MTU) on our platform in Q3 FY22 was 64.4 million, a growth of 37 million YoY and 12 million QoQ.”

Processing of merchant payments through all instruments (Paytm Wallet, Paytm Payments bank account, other banks net banking, credit and debit cards, UPI, etc) grew 123 percent YoY.

Paytm’s Gross Merchandise Value (GMV) for Q3 FY22 was 2.5 lakh crore. Our GMV from processing payments through MDR-bearing instruments grew 77 percent YoY. GMV is the amount processed on our platform when a customer is making a payment to a merchant using any instrument.

“GMV at Rs 2.5 lakh crore in Q3 FY22 was up 123 percent YoY and 28 percent QoQ driven by growth in our online and offline merchant base, increase in the user engagement, and impact of the festive season. GMV from MDR-bearing instruments (non-UPI instruments) grew by 77 percent YoY,” Paytm said.

“Payment Services to Consumers encompasses payments done by consumers on the Paytm app, where we earn MDR and certain fees. Revenue from Payment Services to Consumers was up 60 percent YoY and 15 percent QoQ to Rs 406 crore, driven by growth in transaction volumes of our Paytm Payment Instruments and expansion of use-cases on the Paytm app,” Paytm said.

In the UPI ecosystem, Paytm Payments Bank Ltd (PPBL) is the biggest beneficiary bank for UPI transactions, with a record 926 million transactions in December 2021, as per NPCI data, and is also one of the leading remitter banks for UPI transactions. PPBL also holds the majority market share in UPI Autopay mandate registration for recurring bill payments.

The results came after the close of the market hours. Shares of Paytm ended at Rs 952.90, up by Rs 8.40, or 0.89 percent on the BSE.

(Edited by : Jomy Jos Pullokaran)

First Published: Feb 04, 2022, 11:24 PM IST