paytm: Paytm Q4 loss widens to Rs 761 crore

NEW DELHI – Digital financial services company One97 Communications, operating under the Paytm brand, on Friday reported a widening of its consolidated loss to Rs.761.4 billion for the quarter ended March 2022 on the rise in payment processing fees and of employee benefit expenses.
The company posted a loss of Rs 441.8 crore in the same period a year ago.
However, the losses decreased sequentially. The consolidated loss for the quarter ended December 2021 was Rs 778.4 crore.
“As announced in April 2022, we believe that we will achieve operational breakeven (ie, EBITDA before ESOP costs) by September 2023. This will be driven by continued revenue growth and moderate costs as operating leverage begins to emerge,” said Paytm.
“The company’s EBITDA loss (pre-ESOP) for FY2022 improved by 8 per cent year-on-year to Rs.1,518 crore versus Rs.1,655 crore last year. In addition, the company had Rs809 crore in non-cash ESOP costs,” it added.
However, One97 Communications (OCL) operating income rose about 89 per cent to Rs.1,540.9 crore during the quarter from Rs.815.3 crore in the same period last year.
Spending on staff more than doubled to Rs. 863.4 crore from Rs. 347.8 crore in the quarter of March 2021.
Payment processing fees increased by 52 per cent to Rs.774.2 crore in the quarter of March 2022 from Rs.508.7 crore a year ago.
Marketing spend has more than doubled from Rs 100.1 crore to Rs. 248.9 crore.
For the year ended 31 March 2022, the loss of OCL increased to Rs 2,396.4 crore from Rs 1,701 crore in 2020-21.
However, annual revenue from operations increased by 77.49 per cent to Rs.4,974.2 crore in 2021-22 from Rs.2,802.4 crore previously.
“We have leveraged our distribution and rich insights to offer financial products to our consumers and merchants in partnership with financial institutions.
“One of the highlights of the quarter was the rapid growth of our credit products, giving us an attractive profit pool. In April 2022, we achieved an annual payout rate of approximately Rs 20,000 crore through our platform,” OCL said in a statement.
Its average monthly transactional user base (MTU) grew 41 percent year-on-year to over 7 million in the quarter, while its merchant base grew to 2.67 million at the end of 2021-22.
“We continue to see massive growth in our GMV which stood at Rs 2.6 lakh crore for the quarter, a 104 per cent yoy growth,” said OCL.
Its full-year Gross Merchandise Value (GMV) has more than doubled from Rs. 4 crore in FY2021 to Rs. 8.5 crore in FY2021-22, the statement said.

Sybil Alvarez

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