Financial Insights

Paytm reports net loss of Rs 778 crores

One 97 Communications, operating company of Paytm reported a consolidated loss of Rs 778.5 crores in its Q3 results, as against the loss of Rs 535 crores for the corresponding period last year. The loss for quarter ended on September 2021 was Rs 473.5 crores as investors felt it was recovering only for its losses to widen further in the third quarter of FY21-22.

The company’s consolidated revenue saw an 89% growth YoY and a 34% QoQ growth as it touched Rs 1,456.1 crores. Revenue from payment services to the consumers saw a growth of 60% YoY to reach Rs 406 crores while revenue from payment services to merchants was up by 117% YoY.

“Strong growth is driven by an increase in merchant payments processed through MDR (merchant discount rate) bearing instruments (Paytm Wallet, Paytm bank account, other banks netbanking, debit and credit cards), disbursements of loans on platform and recovery of commerce business from Covid impact,” the company said.

The company managed to record a 37% YoY growth in average monthly transacting users. Its revenue from financial services grew 201% YoY to Rs 125 crores. The payment system now has 35 crore users and over 2.4 crore merchant users. The company’s operating expenses saw a sharp rise of 72% to Rs 2,317.4 crores.

Paytm’s IPO was considered a failure as the stock opened at Rs 1950 per share, only to close at Rs 1560 per share. The stock managed to see some recovery, but it fell consistently later as touched a low of Rs 881. Currently, the stock has seen some recovery and trades at Rs 953.5 per share.

Highlight by Aman Agarwal.

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