Paytm Q3 Results : Paytm’s parent company, One 97 Communications Limited (One 97 Communications Ltd) announced the results for the third quarter of the financial year 2024-25. The company recorded a net loss of Rs 208.50 crore in the quarter, which is lower than the loss of Rs 221.70 crore in the same period last year. However, the company’s income from operations fell by 35.88% to Rs 1827.80 crore.
Main reasons for improvement in deficit
The company’s revenue recorded a growth of 10% on quarter-on-quarter (QoQ) basis, which Gross Merchandise Value (GMV) The increase is a result of increase in subscription income and income related to distribution of financial services. Apart from this, the company has reduced its total expenses by 31% to Rs 2,219 crore, which has helped in controlling losses.
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Performance of Payment and Financial Services
Paytm’s parent company has Payment Services Through this, revenue of Rs 1,059 crore has been earned, which is 8% more than the previous quarter. Income from financial services increased by 34% to Rs 502 crore. of the company net payment margin also increased by 5% to Rs 489 crore. By December 2024, the company’s device merchant subscriber base touched 1.17 crore, with 5 lakh new subscribers added.
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Focus on capex and cost management
Capital expenditure (capex) of Paytm’s parent company stood at Rs 80 crore in Q3FY25, taking the total to Rs 176 crore in the last nine months. Capex has declined compared to FY24, which is a result of reduction in device costs and focus on equipment refurbishment. Depreciation and Amortization (D&A) Expenses also saw a decline of 7% on quarterly (QoQ) basis and 18% on annual (YoY) basis. Paytm said that due to lower capex in FY25, further reduction in D&A expenses is expected in the coming time.
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Strong growth in cash balance
By the end of December 2024, the cash balance of the company increased to Rs 12,850 crore, which was Rs 9,999 crore in September 2024. It recorded a quarterly growth of Rs 2,851 crore, which mainly came from the sale of stock acquisition rights of Pepe Corporation, Japan and improvement in working capital. Paytm shares are also trading with a slight rise after these results. On January 20, 2025, at around 2:45 pm, the company’s shares were trading at Rs 905.50 per share with a gain of 0.59% on BSE.
