Hot Pursuit     21-May-22
Paytm Q4 revenue spurts 89% YoY, net loss widens to Rs 763 cr
One 97 Communications (Paytm) on Friday reported a consolidated net loss to Rs 763 crore in Q4 March 2022, higher than net loss of Rs 441.80 crore in Q4 March 2021.
One 97 Communications is fintech major Paytm's parent. Its consolidated revenue from operations grew 89% year-on-year (Y-o-Y) to Rs 1,540.90 crore in the quarter under review compared with Rs 815.30 crore in the corresponding quarter last year.

The revenue was driven by 52% Y-o-Y growth in gross merchandise value (GMV) from Merchant Discount Rate (MDR) bearing instruments, 2.1 million new devices, and 417% Y-o-Y growth in value of loans disbursed.

In Q4 FY 2022, EBITDA (before ESOP cost) was (Rs 368 crore) as compared to (Rs 420 crore) in Q4 FY2021 (12% reduction) and (Rs 393 crore) in Q3 FY2022 (6% reduction).

Average Monthly Transacting Users (MTU) (number of unique users with at least one successful payments transaction in a month), has grown by 41% Y-o-Y to 70.9 million in Q4 FY 2022.

Paytm's contribution profit (defined as revenue from operations less direct costs) improved to 35% in Q4 FY 2022 from 21% in Q4 FY 2021 and 31% in Q3 FY 2022. "We expect to see continued improvements in contribution margin in Q1 FY 2023 and going forward," the company said.

In the lending vertical, total loans disbursed were 6.5 million for the quarter, amounting to Rs 3,553 crore in terms of value, a growth of 417% Y-o-Y. Consequently, the company's revenues from Financial Services (and others) grew to Rs 168 crore, a growth of 342% Y-o-Y.

For the full year, the number of loans disbursed through the platform has grown 478% Y-o-Y to 15.2 million in FY 2022 from 2.6 million in FY 2021.

For the full year, the company's consolidated revenue from operations grew by 77% to Rs 4,974 crore in FY 2022 from Rs 2,802 crore for the FY 2021. Net loss stood at Rs 2,392.90 crore in FY 2022, higher than net loss of Rs 1,696.10 crore in FY 2021. Contribution profit improved to 30.1% of revenue in FY 2022 from 12.9% in FY 2021.

The company had net cash, cash equivalent and investable balance of Rs 9,271 crore as of March 2022.

Paytm is India's payment Super App offering consumers and merchants most comprehensive payment services. Paytm enables commerce for small merchants and distributes various financial services offerings to its consumers and merchants in partnership with financial institutions.

Shares of One 97 Communications jumped 3.90% to settle at Rs 575.35 on Friday.

The stock entered the bourses on Thursday, 18 November 2021. It was listed at Rs 1955, a discount of 9.07% compared with the initial public offer (IPO) price of Rs 2150. The counter has since dropped 73.24% from its IPO price. Meanwhile, the stock is down 70.66% from its 52-week high of Rs 1,961.05 hit on 18 November 2021.

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