Paytm Q4 Loss Widens to Rs 761 Crore, YoY Revenue Up by 89%; See Details

Digital financial services company One97 Communications, which operates under the Paytm brand, on Friday reported expanding its consolidated loss to Rs 761.4 crore for the quarter ended March 2022 due to higher payment processing fees and employee benefits expenses. The company recorded a loss of Rs 441.8 crore in the same period last year.

However, losses diminished on a serial basis. Its consolidated loss was Rs.778.4 crore in the quarter ended December 2021. “As announced in April 2022, we believe we will achieve operating breakeven (ie EBITDA before ESOP cost) by September 2023. This will be driven by continued revenue growth, along with moderation in costs as operating leverage begins,” Paytm said.

The company’s EBITDA loss (before ESOP) for FY22 saw an improvement of 8 per cent YoY to Rs.1,518 crore from Rs.1,655 crore in the previous year. In addition, the company had Rs 809 crore in non-cash expenses for the ESOP.” However, revenue from One97 Communications (OCL) operations jumped by nearly 89 per cent to Rs. 1,540.9 crore during the quarter from Rs. 815.3 crore in the same period last year .

Staff expenses more than doubled to Rs.863.4 crore from Rs.347.8 crore in the March 2021 quarter. Payment processing fees increased by 52% to Rs.774.2 crore in the March 2022 quarter from Rs.508.7 crore a year earlier.

Marketing expenses more than doubled to Rs. 248.9 crore from Rs. 100.1 crore. For the year ended March 31, 2022, OCL’s loss widened to Rs.2,396.4 crore from Rs.1,701 crore in 2020-21.

However, annual revenue from operations jumped 77.49% to Rs.4,974.2 crore in 2021-22 from Rs.2802.4 crore previously. “We have leveraged our distribution and rich insight to offer financial products to our customers and merchants, in partnership with financial institutions.

“One of the highlights of the quarter was the rapid growth of our lending products which provide us with an attractive dividend package. In April 2022, we reached an annual run rate of close to Rs 20,000 crore of disbursement through our platform,” OCL said in a statement. The average monthly transaction user base (MTU) increased 41 per cent YoY to over Rs 7 crore for the quarter, while merchant base grew to Rs 2.67 crore at the end of 2021-22.

“We continue to see massive growth in our GMV, which stood at Rs 2.6 crore for the quarter, which is a growth of 104 per cent year on year,” OCL said. The statement said the full-year gross merchandise value (GMV) doubled to Rs 8.5 crore in 2021-22 from Rs 4 crore in fiscal 2021.

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