Revenue from operations jumped 31.59% to Rs 2,518.6 crore in the quarter ended 30 September 2023 from Rs 1,914crore recorded in the same period last year.

The growth in the revenue was driven by increase in merchant subscription revenues, increase in GMV and growth in disbursements of loans through our platform.

During the quarter, EBITDA before ESOP was at Rs 319 crore, registering a growth of 108.5% from Rs 153 crore in Q2 FY23. EBITDA before ESOP margin improved to 6% in Q2 FY24 from negative 9% in Q2 FY23, on account of increase in contribution margin and operating leverage.

The company's contribution profit for the quarter stood at Rs 1,426 crore, an increase of 69% YoY. The contribution margin expanded to 57% in this quarter, an increase of 13 basis points YoY, due to increase in net payment margin and growth in loan distribution business.

Contribution profit, a non-GAAP financial measure, is defined as revenue from operations less payment processing charges, promotional cashback & incentives expenses, connectivity & content fees, contest, ticketing & FASTag expenses & logistic, deployment & collection cost of businesses.

The firm stated that its payment business continues to scale led by increase in GMV and higher subscription revenue. In Q2 FY24, the company's payments services revenue grew 28% YoY to Rs 1,524 crore, despite some of the revenues getting pushed to Q3 FY24.

In this financial year, online sales for the festive season will be captured in Q3, whereas in the previous financial year it was largely in Q2, added the company.

Revenue in the financial services and others business was Rs 571 crore, up 64% YoY.

During Q2 FY24, the number of loans distributed through the firm's platform grew to 1.32 crore, recording a growth of 44% YoY. The value of loans distributed jumped to Rs 16,211 crore, up 122% YoY.

Average monthly transacting users (MTU) for Q2 FY24 grew by 19% YoY to 9.5 crore as adoption of mobile payments for consumers in India continues.

Net payment margin climbed 60% YoY to Rs 707 crore due to increase in payment processing margin and increase in merchant subscription revenues.

The gross merchandise value surged 41% YoY to Rs 4.50 lakh crore. The payment processing margin has improved to 7-9 bps range due to increase in GMV of non-UPI instruments like Postpaid, EMI and cards,and improvements in payment processing margin on these non-UPI instruments.

Merchant subscriptions increased to 92 lakh, registering. The leadership in payment monetization continued and added 44 lakh and 14 lakh new subscriptions in last year and quarter, respectively.

Commerce & cloud revenues grew 12% YoY to Rs 423 crore. As on 30 September 2023, the company's net cash and investable balance stood at Rs 8,754 crore.

One 97 Communications is the digital financial services firm which operates under the Paytm brand. Paytm is India's payment super app offering consumers and merchants comprehensive payment services.

Shares of One 97 Communications slipped 2.77% to Rs 960 on the BSE.