Paytm Q1 net loss at ₹840 crore. One 97 Communications net loss widens from ₹550 crore sequentially. Key highlights

Stock Market Today: Paytm (One 97 Communications Ltd) reported net loss at ₹840 crore . Net loss widened from ₹550 crore in the previous quarter and ₹338 Crore in the year-ago quarter

The same however was close to analysts expectations. Analysts at Motilal Oswal Financial Services had expected Paytm to report net loss of ₹840 crore.

Paytm (One 97 Communication share price gained up to 6% in the intraday trades post the results.

Revenues decline as Payments & Financial Services revenues dip

Paytm revenues from operations at ₹1,502 crore 36% year on year from ₹2,342 crore in the June'2023 quarter. The revenue from operations also was down 34% sequentially compared to ₹2,267 crore in the previous quarter

Payments & Financial Services revenues at ₹1,164 declined 37% sequentially from ₹2,267 crore in the March'2024 quarter and were down 39% year on year too compared to ₹2,342 crore in the year ago quarter.

Payment Services to Consumers , to merchants and to others at ₹83 crore ₹801 crore and ₹280 crore respectively declined 81%, 28% and 18% sequentially respectively.

Operating performance takes a hit

Adjusted for ESOP costs Earnings before interest, tax, depreciation and amortisation (Ebitda) loss stood at ₹545 crore during the quarter compared to positive Ebitda of ₹84 crore in the year agi quarter and ₹102 crore in the previous quarter

Payment processing charge declines- PPC at ₹517 crroe declined 28% sequentially and 34% year on year.

Gross Merchandise Value (GMV) dips- At ₹4.26 lakh Crore the GMV also came lower compared to ₹4.69 Crore in the previous quarter.

GMV is the rupee value of total payments made to merchants through transactions on Paytm app, through Paytm Payment Instruments or through its payment solutions, over a period. It excludes any consumer-to-consumer payment service such as money transfers.

Payment processing charge as % of Gross Merchandise Value (GMV) decline - At 0.12% the matrix declined 7 basis points from 0.19% in the year ago quarter and 3 bps sequentially. (100 basis points make 1%)

Other key operational matrix

Merchant Transactions at ₹900 crore were lower compared to ₹962 crore in the previous quarter

Value of personal and merchant loans distributed at ₹5,008 crore declined 26% y-oy and was slightly lower than ₹5097 crore in the previous quarter

Company views

Paytm in its release said that the revenue and profitability impact was in line with guidance.

Payment Operating Metrics is rebounding to January’24 Levels. Paytm is focusing on cost reduction and employee cost has declined by 9% sequentially

Going forward Paytm expects 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 optimization

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions