Paytm's net loss widens to ₹839 crore in Q1: ‘On path to recovery’

Paytm Q1 results: Paytm revenue from operations declined 36 per cent to ₹1,502 crore in Q1FY25 as against ₹2,342 crore in the year-ago period.

Updated on: Jul 19, 2024, 14:59:16 IST

By HT News Desk | Edited by Mallika Soni

Prefer HTon Google

Share via

Copy link

One 97 Communications Ltd, Paytm's parent company, reported its Q1FY25 consolidated net loss widened to ₹839 crore from ₹357 crore a year ago following Reserve Bank of India (RBI) curbs on the fintech firm's payments bank business. The company's revenue from operations declined 36 per cent to ₹1,502 crore in Q1FY25 as against ₹2,342 crore in the year-ago period.

Paytm Q1 results: A QR code sticker of the digital payment app Paytm is seen outside a grocery store in Kolkata, India. (Reuters)

Read more: Come to office or forget getting offs: HCLTech links leaves to office attendance

The company said in a stock exchange filing, “Going forward, we expect revenue and profitability to improve, driven by growth in operating parameters such as GMV, an expanding merchant base, recovery in loan distribution business and continued focus on cost optimisation.”

The Reserve Bank of India placed restrictions on the firm’s associated entity Paytm Payments Bank Limited (PPBL) in January this year. Earlier, Paytm wrote off ₹227.1 crore worth of investment in PPBL and accounted for it as impairment losses.

The company has reported an operating revenue of ₹1,502 Cr, with Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) loss standing at ₹792 core . EBITDA before ESOP stood at loss of ₹545 crore, as stated previously.

Revenue from financial services amounted to ₹280 crore, while revenue from marketing services was ₹321 crore. During the quarter, contribution profit was at ₹755 crore, with a 50% margin.

Paytm spokesperson said, “We are seeing a rebound in our merchant operating metrics and stability in our consumer base, demonstrating our path to recovery. This also indicates the continued confidence of our merchant partners and consumers on our platform, and we are grateful for the trust of our stakeholders. With Q1 illustrating the full impact of recent disruptions, we are confident in our trajectory towards sustained growth going forward."

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More