It had reported a loss of Rs 571.5 crore for the quarter ended September 30 last year.
Revenue from operations for the Noida-based financial services company grew almost 32% from a year earlier and 7.5% from the previous quarter to Rs 2,518.6 crore.
The revenue growth was led by an increase in gross transaction value (GTV) on Paytm, merchant subscription revenue and growth in loans distributed through the platform, the company said.
Almost 60% of the quarterly revenue came from payment services. This included subscription revenue from merchants opting for its soundbox devices and other value-added services.
Other revenue sources include distribution of loans and other credit products, which contributed 23% to total revenue last quarter, as well as commerce and cloud services that accounted for 17%.
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In the second quarter of FY24, One 97 saw payment revenues grow to Rs 1,524 crore, almost 8% sequentially.Subscription revenue also increased. As of September 2023, merchant subscriptions totalled 9.2 million, up 16% quarter-on-quarter.
“Due to an increase in GMV (gross merchandise value) of non-UPI (Unified Payments Interface) instruments like postpaid, EMI (equated monthly instalments) and cards, and improvements in payment processing margin on various non-UPI instruments, Paytm’s net payment processing margin has further improved and is now at the top end of a 7-9-basis-point range,” One 97 said as part of its commentary on the quarterly results.
In the past quarter, the company’s merchant payments volume (GMV) grew to Rs 4.5 lakh crore.
Revenue from distribution of financial services stood at Rs 571 crore, while cloud and commerce revenue totalled Rs 423 crore. The total value of loans distributed was Rs 16,211 crore.
Paytm’s cloud business includes advertising, co-branded credit cards, marketing cloud and loyalty business, while its commerce business comprises travel, movie, entertainment ticketing and selling of deals and gift vouchers to consumers, among others.
“With the onboarding of Tata Capital, we now have nine bank and NBFC partners across all our lending products (including credit cards). We continue to work closely with our existing partners and are on track to add more partners in the remaining financial year,” the company said in a filing with the BSE.
During the last quarterly call with analysts, Paytm founder Vijay Shekhar Sharma said the company was aiming to generate free cash flow by the end of this year.
For the September-end quarter, One 97’s cash balance had increased to Rs 8,754 crore from Rs 8,367 crore three months earlier.
“We have now added cash balances for three consecutive quarters, adjusted for Rs 1,056 crore of funds used for buyback (including buyback tax and other transaction costs) in Q3 and Q4 of FY 2023,” it said on Friday.
The cash position was though lower by 6% compared with Rs 9,271 crore in March 2022.
