Paytm scores profit for three straight quarters

NEW DELHI: India’s leading payments and financial services company Paytm has shown yet another impressive quarterly growth, registering a bumper revenue uptick of 39 per cent YoY, taking its revenue to Rs 2,342 crore in Q1FY24. This was achieved by increase in GMV, merchant subscription revenues, and growth of loans reg-istered on the platform.

Paytm’s EBITDA before ESOP saw a significant improvement of Rs 359 crore YoY to Rs 84 crore, compared to Rs 52 crore in Q4FY23 (excluding the UPI incentive). In Q1FY24, Paytm further grew its contributing profit, up by 80 per cent YoY to Rs 1,304 crore. Driven by the rise in contribution margin and consistent improvement in profita-bility, EBITDA before ESOP margin also improved to 4 per cent.

Over the last one year, the company’s merchant subscriber base more than doubled to 79 lakh as of June 2023 with its merchant base expanding to 3.6 crore, a robust growth for its pioneering devices like Paytm Sound Box and Paytm Card machines. Contribution margin of the company expanded to 56 per cent this quarter, an increase of 12 per cent point YoY, with increase in net payment margin and growth in loan distribution business.

Its payments services revenue grew 31 per cent YoY to Rs 1,414 crore for Q1FY24.

As a merchant payments leader, Paytm continues to see sustained traction and earns more than Rs 100 to Rs 500 per month per device. Meanwhile, the number of merchant loans distributed grew 141 per cent YoY in Q1 FY 2024, while the value of merchant loans grew 232 per cent YoY to Rs 2,744 crore. (IANS)

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