Paytm Q4 Results: Loss Increased to Rs 550 Crore, Revenue at Rs 2,267 Crore

Indian fintech company One97 Communication released its quarter four results on May 22, 2024. Paytm reported a net loss of Rs -550 crore, which is higher than the Rs -169 crore reported in the same period last year.

Paytm’s revenue from operations in the fourth quarter FY24 stood at Rs 2,267 crore. Previously, in the same period the company's revenue was at Rs 2,334 crore, down by 3% year-on-year basis. 

The company’s EBITDA before ESOP fell to Rs 103 crore in the Q4 against Rs 234 crore in the previous quarter. Excluding the UPI incentive the EBITDA before ESOP is at Rs 185 crore. 

What Impacted Paytm Q4 Results?

Paytm’s fourth quarter earnings were negatively impacted by the temporary disruptions on the account of Unified Payment Transaction (UPI) transition and permanent disruption due to regulatory issues in paytm payments bank.

In the March quarter of FY24, Paytm payment business revenue rose to Rs 1,568 crore. It grew by 7% on a year-on-year basis but down by 9% QoQ basis. It is majorly due to the disruption on the paytm payment bank products. Also, a temporary impact on the account of conservative approach taken for the certain businesses and disruption in the operating metrics.

Paytm Management Commentary?

The company said, Paytm Bank products like Paytm Wallet and Fastag were distributed by the company to tackle the current situation of the Paytm bank. It anticipates a steady state annualised direct impact on EBITDA to be around Rs 500 crore.

The fourth-quarter GMV jumped 30% year-on-year to Rs 4.7 lakh crore. The Q4 contribution was Rs 1,288 crore and remained flat year-on-year. The contribution margin improved to 57% from 55% a year ago. 

Paytm's cash balance was Rs 8,650 crore as of the quarter ending March 2024, compared to Rs 8,901 crore in December 2023.