Paytm Q2 Results: One97 Communications Limited – the operator of digital payments platform Paytm, announced its July-September quarter results for the financial year 2021-22, reporting a net loss of Rs 473 crore on a consolidated basis, compared to a loss of Rs 437crore in the corresponding period last year.
Paytm Q2 Results: All You Need To Know
Paytm’s revenue from operations in the second quarter of the current fiscal stood at Rs 1,086 crore, compared to Rs 664 crore in the year-ago period, marking a growth of 64 per cent year-on-year.
The jump in revenue was driven by a 52 per cent growth in non-UPI gross merchandise value and over a three-fold rise in growth of financial services and other revenue, according to a regulatory filing by Paytm to the stock exchanges today
The company’s revenue from payment services to merchants rose 64 per cent to Rs 400 crore, driven by non-UPI payment volume in payment gateway and growth in devices. Its revenue from payment services to customers was up 54 per cent to Rs 353 crore, driven by an increase in non-UPI payment usage on the consumer platform.
“The growth of non-UPI GMV has driven continued payments revenue growth and our UPI-led payment volume growth is translating to a significant ramp-up of our financial services offering…we are on our way to pre-COVID volumes for commerce and cloud services,” said Paytm in its statement today.
The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) loss stood at Rs 452.4 crore in the September quarter, up from a loss of Rs 445.6 crore in the year-ago period.
Paytm’s contribution to profit was up as much as 592 percent year-on-year to Rs 260 crore due to monetisation of a large distribution base through the high margin offerings such as lending, advertisements, and commerce offerings.
On its market debut, Paytm’s shares slumped as much as 28 per cent from its issue price, to hit an intraday low of Rs 1,560. The stock had opened for trading at Rs 1,950 on the NSE, marking a decline of 9.3 per cent or Rs 200 from its issue price of Rs 2,150.
Paytm’s Rs 18,300 crore IPO has been the biggest in India’s corporate history so far – breaking a record held by state-run Coal India, which raised Rs 15,000 crore – almost a decade ago.
Incorporated in 2010 as a platform for mobile recharging, Paytm grew rapidly after US ride-hailing firm Uber Technologies listed it as a quick payment option in India. Its use swelled in 2016 after the government announced demonetization – banning high-value currency notes, which boosted digital payments.
On Friday, November 26, shares of One97 Communications settled 0.86 per cent lower at Rs 1,781.15 apiece on the BSE.