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Paytm reported a 39.4 percent increase in sales for the June quarter (Q1) at Rs 2,341 crore while cutting losses by 45 percent to Rs 358 crore in Q1 from Rs 645 crore in the same period the previous fiscal year.
Paytm’s overall KPIs appear to be improving faster than predicted, with the net payment margin increasing as merchant subscription revenues rise. Its payment processing margin increased as non-UPI transactions such as card and EMI instruments grew at a quicker rate for the company.
During the quarter, the company’s revenue from the payments division increased by 31% to Rs 1,414 crore. Year on year, the net payment margin increased by 69% to Rs 648 crore.
It recorded a 93 percent rise in income from financial services, including its profitable and quickly expanding loan marketplace platform, to Rs 522 crore year on year.
The company’s cash balance climbed to Rs 8,367 crore in the fiscal quarter ending June 2023, up from Rs 8,275 crore in the fiscal quarter ending March 2023.
Paytm’s credit distribution business grew 167 percent year on year (YoY) in the June quarter, with Rs 14,845 crore in loan value disbursed. The total number of loans facilitated on the payments platform increased by 51% to 1.28 crore. The company makes a commission from credit distribution on its platform.
Merchant payment volumes, or GMV (gross merchandise value), were Rs 4.05 lakh crore in the June quarter, a 37 percent increase year on year.
Paytm has four credit portfolios
- Paytm Postpaid
- Personal loans
- Merchant loans
- Co-branded credit cards.
The Noida-based payments platform’s monthly transactional user base has increased to 9.2 crores from 7.5 crores (a 23 percent YoY increase) in the June quarter of last year. The number of payment devices deployed increased to 79 lahks, nearly doubling the 38 lakh devices deployed during the same period the previous year.
Point-of-sale (POS) devices and sound boxes that announce scan-and-pay transactions are among the devices. Both sorts of gadgets generate monthly revenue for the company. During Q1FY24, it added 11 lakh devices.
With over nine billion monthly transactions and close to Rs 15 lakh crore in transaction value, Paytm is the third-largest player in the UPI ecosystem, the country’s most popular digital payment method. PhonePe and Google Pay are the ecosystem’s first and second-largest players, respectively.
It has around 13% market share on the UPI platform. PhonePe, a competitor, has also launched a merchant loan business this quarter.
Paytm presently has seven financial partnerships for loan distribution and expects to add three to four more this fiscal year. Early this month, the company also established a loan distribution collaboration with Shriram Finance.
Patym share Price Today
Paytm’s parent company, One97 Communications Ltd, closed at Rs 843.55 per share on the BSE earlier on July 21, down 0.89 percent from the previous closing.