YoY Revenue Up by 89 percent as Paytm Q4 Loss Widens to Rs 761 Crore; See Details

One97 Communications, a provider of digital financial services that operates under the Paytm brand, announced on Friday that the increase in its consolidated loss for the three months ended in March 2022 to Rs 761.4 crore was due to higher costs associated with employee benefits and payment processing. In the identical period a year prior, the company reported a loss of Rs 441.8 crore.

However, the losses decreased sequentially. Its combined loss for the three months ending in December 2021 was Rs 778.4 crore. We anticipate operating breakeven (i.e., EBITDA before ESOP expense) by September 2023, as stated in the April 2022 announcement. This will be fueled by sustained revenue growth and moderate expense growth as operating leverage takes hold, according to Paytm.

"The company's EBITDA loss (before ESOP) for FY'22 decreased by 8% from the prior year to Rs 1,518 crore, down from Rs 1,655 crore. The company also incurred non-cash ESOP expenses totaling Rs 809 crore, it continued. However, One97 Communications' (OCL) operating revenue increased by approximately 89% to Rs 1,540.9 crore during the quarter from Rs 815.3 crore during the same period last year.

Employee costs more than quadrupled, from Rs 347.8 crore in the March 2021 quarter to Rs 863.4 crore. The payment processing fees climbed by 52% to Rs 774.2 crore in the quarter ending in March 2022 from Rs 508.7 crore the previous quarter.

The cost of marketing more than doubled to Rs. 248.9 crores from Rs. OCL's loss increased from Rs 1,701 crore in 2020-21 to Rs 2,396.4 crore for the fiscal year that ended March 31, 2022.

However, from Rs, 2,802.4 crores in the previous year to Rs 4,974.2 crore in 2021–22, the yearly revenue from operations increased by 77.49%. "In collaboration with financial institutions, we have been able to offer financial solutions to our customers and merchants by leveraging our distribution network and deep insights.

"One of the highlights of the quarter has been the quick expansion of our lending products, which gives us a desirable profit stream," says the company. We reached an, annualized run rate of over Rs 20,000 crore through our platform in April 2022, according to a statement from OCL. After 2021–2022, its merchant base grew to 2.67 crores, while its average monthly transacting user (MTU) base increased by 41% year over year to over 7 crores.

"We continue to observe a phenomenal growth in our GMV," OCL stated. "For the quarter, it stood at Rs 2.6 lakh crore, a growth of 104% Y-o-Y." According to the announcement, its full-year gross merchandise value (GMV) increased by more than twofold to Rs 8.5 lakh crore in FY 2021–22 from Rs 4 lakh crore in FY 2021.

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