Paytm Q3 Results: Consolidated Loss Narrows to Rs 392 cr

Paytm parent One 97 Communications recorded a 42 percent increase in revenue from operations to Rs 2,062 crore in the December quarter. A surge in loan disbursals mainly fueled the increase in operating revenue.

The company's net loss narrowed to Rs 392.1 crore from Rs 778.5 crore last year.

Paytm reported a positive EBITDA before ESOP cost (earnings before interest, taxes, depreciation, amortization, and employee stock option costs) of Rs 31 crore. This metric was negative Rs 393 crore in December quarter last year.

"I wrote to you on April 6, 2022, and set a target for EBITDA before ESOP cost breakeven by the September 2023 quarter. I am very happy to share that our company has achieved this milestone of EBITDA before ESOP cost profitability in the December 2022 quarter itself. This is three quarters ahead of our guidance," Vijay Shekhar Sharma, Founder and CEO, Paytm informed the shareholders in a letter.

The company said its net payment margin grew to Rs 459 crore, up 120 percent year-on-year on the back of improved profitability in the payments business. The value of Paytm’s loan disbursals rose 357 percent year-on-year during the December quarter at Rs 9,958 crore. The Noida-based fintech company's revenues from financial services also jumped more than three times to Rs 446 crore from Rs 125 crore last year.

On Friday, the company’s non-executive non-independent director Douglas Feagin, Ant Group's nominee, resigned. Ant Group holds almost 25 percent stake in One 97 Communications. The company, which is in the midst of a share buyback, said that as of December 31, it had Rs 8,957 crore outstanding as cash balances.

"During the last quarter, we purchased 1.5 million shares and utilized Rs 68 crore of cash. Since the end of the December quarter, we have purchased 13.1 million shares and utilized Rs 728 crore of cash. In total till February 3, 2023, we have purchased 14.67 million shares and utilized Rs 796 crore of cash, at an average price of Rs 543 per share," it added.