Paytm Reports Q1 Net Loss of ₹840 Crore, Up from ₹550 Crore in Previous Quarter

Paytm reports Q1 net loss of ₹840 crore, widening from ₹550 crore in the previous quarter and ₹358 crore in the same quarter last year.

Paytm reports Q1 net loss of ₹840 crore, widening from ₹550 crore in the previous quarter and ₹338 crore in the same quarter last year.

This result was in line with analysts’ expectations, as Motilal Oswal Financial Services had predicted a net loss of ₹840 crore for Paytm.

Following the announcement, Paytm’s share price increased by up to 2% during intraday trading.

Revenues declined as Payments & Financial Services revenues dipped. Paytm’s revenue from operations was ₹1,502 crore, a 36% year-on-year decrease from ₹2,342 crore in the June 2023 quarter. Sequentially, revenue from operations fell by 34% compared to ₹2,267 crore in the previous quarter.

Payments & Financial Services revenues stood at ₹1,164 crore, down 37% sequentially from ₹2,267 crore in the March 2024 quarter and 39% year-on-year from ₹2,342 crore in the same quarter last year.

Revenue from Payment Services to Consumers, merchants, and others was ₹83 crore, ₹801 crore, and ₹280 crore, respectively. These figures represent sequential declines of 81%, 28%, and 18%, respectively.

Operating performance took a hit. Adjusted for ESOP costs, the Earnings Before Interest, Tax, Depreciation, and Amortisation (Ebitda) loss was ₹545 crore during the quarter, compared to a positive Ebitda of ₹84 crore in the same quarter last year and ₹102 crore in the previous quarter.

Payment processing charges declined, with PPC at ₹517 crore, down 28% sequentially and 34% year-on-year.

Gross Merchandise Value (GMV) dipped to ₹4.26 lakh crore, down from ₹4.69 lakh crore in the previous quarter.

GMV represents the rupee value of total payments made to merchants through transactions on the Paytm app, via Paytm Payment Instruments, or through its payment solutions, over a period. It excludes consumer-to-consumer payment services such as money transfers.

The payment processing charge as a percentage of GMV declined to 0.12%, down 7 basis points from 0.19% in the same quarter last year and 3 basis points sequentially. (100 basis points make 1%).