Paytm Q4 Result 2024: Net Loss widens to ₹550 crore, Revenue down 2.9% YoY to ₹2,267.10 crore

Synopsis

Paytm on May 22 reported net loss of ₹550 crore in Q4FY24, revenue down by 2.9% YoY to ₹2,267.10 crore.

Quarter Result Performance

One 97 Communications Ltd, the parent company of Paytm, announced a net loss of ₹550 crore for the fourth quarter of fiscal year 2024 (Q4FY24) on May 22. This represents a 3.2-fold increase compared to the same period last year (Q4FY23). The company's margins were significantly impacted following the Reserve Bank of India's (RBI) ban on its subsidiary, Paytm Payments Bank (PPBL), on January 31.

The company's operating revenue declined by 2.9% YoY, falling from ₹2,334 crore in the prior year's corresponding quarter to ₹2,267 crore. The company's revenue experienced a 20% decrease compared to the previous quarter.

To mitigate the financial impact, Paytm reduced its marketing expenses by 16% quarter-over-quarter to ₹2,691 crore, maintaining a stable level year-over-year.

Paytm achieved a 25% increase in revenue to ₹9,978 crore during FY24. Paytm reduced its losses by 19% compared to FY23, resulting in a loss of ₹1,442 crore.

In Q4 FY 2024, Paytm's payments revenue grew by 7% year-on-year to ₹1,568 crore but faced a significant 9% quarter-on-quarter decline, impacted by a drop in gross merchandise value (GMV) and subscription revenue. Despite this decline, Paytm achieved a strong overall revenue performance for the fiscal year, generating ₹6,235 crore, a 25% increase year-on-year.

Net payment margin increased 24% YoY to ₹853 crore for the quarter, while it stood at ₹2955 for FY24, a 50% rise. In Q4FY24, GMV grew 30% YoY to ₹4.7 lakh crore.

In Q4FY24, revenue from financial services and other segments decreased by 36% year-over-year (YoY) to ₹304 crore, primarily due to reduced loan disbursements. Non-lending revenue witnessed an increase YoY, however, it declined slightly quarter-over-quarter (QoQ) as a result of business disruptions. The total value of disbursed loans sharply declined from ₹15,535 crore in the December quarter to ₹5,799 crore in Q4FY24.

Of the total disbursement, merchant loans contributed ₹1671 crore (down by 28% YoY) while personal loans contributed ₹3408 crore.  The average ticket size for both the products also increased.

One 97 Communications Ltd Commentary

"We demonstrated strong revenue momentum (up 25%) and continued our disciplined focus on profitability (EBITDA before ESOP margin up by 8%), in spite of regulatory action on our associate entity PPBL," it added.

Paytm claims to have successfully transitioned its core payment business from PPBL to other partner banks. "This move de-risks our business model and also opens up new opportunities for long-term monetisation," the company said.