Paytm Q4 Results: Net Loss Widens To Rs 551 Crore, Revenue Down 20.5%

One97 Communications Ltd., the owner and operator of payments firm Paytm, has posted a reduction in revenue alongside a widening of its loss in the quarter ended March.

Paytm's net loss widened quarter-on-quarter to Rs 551 crore in the fourth quarter, according to an exchange filing on Wednesday. On a yearly basis, it rose. Analysts polled by Bloomberg estimated a net loss of Rs 431.38 crore.

One97 Communications Q4 FY24 Highlights (Consolidated)

• Revenue down 20.5% to Rs 2,267 crore. (QoQ).

• Ebitda loss at Rs 223 crore vs Rs 157 crore (QoQ).

• Net loss at Rs 551 crore versus Rs 221.7 crore (QoQ).

Paytm's revenue from its businesses fell 20.5% quarter-on-quarter to Rs 2,267 crore. The contribution margin was 57% including UPI incentives.

The Ebitda loss for the quarter stood at Rs 223 crore, compared to Rs 157 crore in the previous quarter. The Ebitda before ESOP for the company stood at Rs 103 crore, including UPI incentives.

In the quarter ended March, the company made an impairment provision of Rs 227 crore, which represented the value of its investment in Paytm Payments Bank.

Owing to Reserve Bank of India's clampdown on the payments bank and uncertainty over business, Paytm has written down the value of its entire investment in Paytm Payments Bank worth Rs 227 crore. As a result, the net loss also widened.

In terms of operational KPIs, the value of loans distributed fell 62.8% quarter-on-quarter to Rs 5,776 crore. It's gross merchandise value fell to Rs 4.7 lakh crore, compared to Rs 5.1 lakh crore in the previous quarter. However, its merchant subscriptions stood at 1.07 lakh in the quarter ended March, compared to 1.06 lakh in the previous quarter.

The monthly transacting users for April stood at 8 crore, down 24% compared to January when it stood at 10.4 crore. This was due to pause in new user sign-ups for the TPAP app and voluntary user attrition after RBI's clampdown on the payments bank.

The company saw financial impact in Q4, however, it said that the full impact of RBI's clampdown on payments bank would be seen in Q1 FY25.

It expects Q1 FY25 revenue of Rs 1,500 to Rs 1,600 crore. But due to the disruptions in operating metrics, it expects to have an incremental Ebitda impact of Rs 100-150 crore.

"We are in discussions with NPCI for confirmation of signing up new UPI consumers for our TPAP App," the company said in its earnings release.

Since it also paused certain payments and loan distribution businesses, the changes are expected to have an incremental Ebitda impact of Rs 75-100 crore in Q1 FY25.

"With emerging regulatory clarity and the recalibration of these products, we have started or will be starting these products soon," it said.