Paytm FY24Q4 Results: Paytm’s loss increased to Rs 550 crore, revenue also decreased by 3% to Rs 2267 crore

One 97 Communications Results: The loss of fintech company One97 Communications (Paytm Results) has increased in the fourth quarter of the financial year 2023-24. During this period, the company’s loss increased to Rs 550 crore, which was Rs 167.5 crore in the same period last year. One97 Communications owns the Paytm brand. The company’s operational income (Paytm Revenue) has declined by about 2.9 percent on an annual basis to Rs 2267.1 crore in the March quarter, which was Rs 2464.6 crore in the same period last year.

The company’s loss (Paytm Loss in FY24) reduced to Rs 1422.4 crore in the entire financial year 2023-24. The company’s loss in the financial year 2022-23 was Rs 1776.5 crore. Paytm’s annual revenue increased by about 25 percent to Rs 9978 crore, it was Rs 7990.3 crore in the financial year 2022-23. Keeping in mind the interest of customers including merchants, the Reserve Bank of India (RBI) barred Paytm Payments Bank Limited (PPBL) from accepting deposits, credit transactions or top-ups to any customer account, wallet and Fastag with effect from March 15. Is. Paytm had estimated a loss of Rs 300-500 crore due to the RBI ban on PPBL.

Expenses activities reduced

To offset some of the impact, Paytm managed to reduce its marketing expense activities in the quarter. Keeping it constant on annual basis and reducing it by 16 percent on quarterly basis to Rs 2691 crore. Paytm claims that it has successfully transferred its core payment business from PPBL to other partner banks. The company said that this step de-risks our business model and also opens up new opportunities for long-term monetization. The company said it expects a near-term financial impact on its revenue and profitability due to the discontinuation of PPBL Wallet and other payment and loan products.

Company’s payment business

In Q4FY24, payments revenue grew 7% YoY to Rs 1,568 crore but declined 9% quarter-on-quarter as GMV and subscription revenue declined. For the full year, Paytm posted a 25% growth in revenue to Rs 6,235 crore. As of March 2024, 1.07 crore merchants are paying for subscriptions across devices. Net payments margin for the March quarter grew 24% YoY to Rs 853 crore, while for the full FY24 it grew 50% to Rs 2,955. In Q4FY24, GMV grew 30% YoY to Rs 4.7 lakh crore.