Paytm Reports Expanded Loss of ₹840 Crore for April-June Quarter

According to a Paytm spokesperson, "The widening of losses and decline in revenue were mainly due to disruptions caused as an outcome of restrictions on Paytm Payments Bank Ltd. by RBI." He further mentioned, "The decline in revenue and increase in losses are coming from the impact on PPBL products like Wallet. We had to suspend the Wallet and many other products.".

Modern fintech company One97 Communications, which owns the brand Paytm, has stated that its losses have widened to ₹840 crore for the quarter up to June 30. This would largely be due to various continuing restrictions on Paytm Payments Bank Ltd. This is against a loss of ₹358.4 crore in the same period a year ago, according to a regulatory filing. Consolidated revenue for the quarter fell 33.48% to ₹1,639.1 crore compared to ₹2,464.2 crore a year ago.

According to a Paytm spokesperson, "The widening of losses and decline in revenue were mainly due to disruptions caused as an outcome of restrictions on Paytm Payments Bank Ltd. by RBI." He further mentioned, "The decline in revenue and increase in losses are coming from the impact on PPBL products like Wallet. We had to suspend the Wallet and many other products.".

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Apart from this, the company has temporarily halted some products that may have industry-wide regulatory implications. "We paused several products temporarily, and these are in the process of being reinstated. The third factor is the reduction in our merchant base and GMV due to these disruptions, which has affected overall profitability," he added. GMV of Paytm fell by 9.1% to ₹4.69 lakh crore QoQ, although it went up 5% on-year to ₹4.3 lakh crore. GMV from continuing operations increased 27% on year to ₹4.26 lakh crore from ₹3.36 lakh crore, while MTU fell by 15% on year to 7.8 crore.

The spokesperson said that the first quarter results had been hit badly by PPBL disruptions, but performance was looking to bounce back in Q2. The improvisation has looked forward to most operational metrics, be it GMV, device merchant activities, loan distribution recovery, or cost optimization. "We are geared for cost efficiency, with a 9% reduction in employee costs on a quarter-on-quarter basis as communicated earlier. We also see some one-time expenses this quarter dropping sharply in the September quarter," the spokesperson said. Employee benefit expenses fell to ₹798.4 crore from ₹970 crore year-on-year and ₹966 crore in the June quarter. Though down 13% sequentially, the number of sales employees rose 5% year on year to 31,607 from 28,479 in June 2023.

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