Paytm Q1 results: Net loss narrows to Rs 357 crore; revenues jump 39%

Fintech major Paytm’s consolidated net loss narrowed to Rs 357 crore for the quarter ended June. It was Rs 644 crore in the period a year ago.

However, the loss widened from the Rs 168 crore reported in the previous March quarter.

Operating revenue in the quarter increased by 39% to Rs 2,342 crore from Rs 1,680 crore in the prior year quarter.

Contribution profit for the first quarter was up around 80% year-on-year to Rs 1,304 cr, with a margin of 56%.

Operationally, EBITDA pre-ESOP improved to Rs 84 crore, with margins at 4%, thanks to increased contribution margin and operating leverage.

Payment business revenue grew 31% year-on-year to Rs 1,414 crore in the June quarter. Gross Merchandise Value (GMV) increased by 37% year-on-year to Rs 4.05 lakh crore.

The net payment margin for the business jumped 69% YoY to Rs 648 cr, while the payment processing margin is at the high end of the 7-9 bps range (excluding UPI incentive as no incentive was recorded this quarter).

Paytm said its overhead costs rose this quarter as expected, up 22% year-over-year, due to higher IPL-related marketing costs, the impact of assessments and the expansion of sales and technology teams.

The average monthly number of users making transactions (MTU) for the first quarter increased by 23% year-on-year to 9.2 crores, as the adoption of mobile payments for consumers continues.

The company said it will continue to invest in marketing to grow the user base.

Lending activity continues to make leaps and bounds with loans of Rs 14,845 crore distributed through the platform in the first quarter, up 167% year-on-year.

Due to positive EBITDA before ESOP, improved working capital and interest income, the company’s cash balance increased to Rs 8,367 crore at the end of June from Rs 8,275 crore in March.

On Friday, shares of the company closed down 1% at Rs 842.85 on NSE.