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Paytm Q2 net loss at Rs 473 Cr.
Nov 29 2021 7:31PM
One 97 Communications (Paytm) reported consolidated net loss of Rs 473.50 crore in Q2 September 2021, higher than net loss of Rs 436.70 crore in Q2 September 2020.  
 
 
Net sales jumped 63.64% to Rs 1086.40 crore in Q2 September 2021 over Q2 September 2020. Revenue growth was driven by 52% growth in non-UPI payment volumes (GMV) and more than three times growth in financial services and other revenue. 
Revenue from payments and financial services grew 69% Y-o-Y to Rs 842.60 crore, while commerce and cloud services revenue grew by 47% Y-o-Y to Rs 243.8 crore. 

Pre-tax loss stood at Rs 471.50 crore in Q2 September 2021, higher than pre-tax loss of Rs 428.30 crore in Q2 September 2020. 

During the quarter, total expenses jumped 37.08% YoY to Rs 1599.40 crore. Employee expense climbed 35.05% YoY to Rs 386.50 crore. 

Contribution profit was Rs 260 crore in Q2 FY22, up 592% Y-o-Y due to monetisation of the company's large distribution base through high margin offerings such as lending, advertisements and commerce offerings. 

Indirect expenses (excluding ESOPs) as a percentage of revenue reduced from 70% of revenues in Q2 FY21 to 63% of revenues in Q2 FY22. 

The company reported improved adjusted EBITDA margin to (39%) of revenues in Q2 FY22 (Rs 425.5 crore), from (64%) of revenues Q2 FY21 (Rs 426.70 crore), along with increased investments in technology and merchant base expansion. 

The company said it has pro forma cash, cash equivalent and investable balance of Rs 11,000 crore (Rs 2,900 as of September 2021 and Rs 8,100 crore of net IPO proceeds) and have a large cushion of ungranted ESOPs. 

The company's Gross Merchandise Value (GMV) for Q2 FY 2022 was Rs 195600 crore, up by 107% Y-o-Y and the growth momentum continued in October 2021, where the GMV at Rs 83200 crore was up 131% Y-o-Y. 

The average Monthly Transacting Users (MTU) in Q2 FY22 is up by 33% Y-o-Y to 57.4 million and the trajectory has continued in October 2021 with 63 million MTUs, growth of 35% Y-o-Y compared to 47 million MTUs in October 2020. 

Paytm said the number of merchant partners in its ecosystem continues to grow and the registered merchant base increased to 23 million in Q2 FY22, up from 18.5 million in Q2 FY21. 

The devices deployed base grew to 1.3 million in Q2 FY22 from 0.3 million as of Q2 FY21. 

The number of loans disbursed grew 714% Y-o-Y to over 2.8 million in Q2 FY22. The lending business continued to show strong growth as a result of the rapid scale-up of all of its lending products, including postpaid (buy-now-pay-later), consumer loans and merchant loans. 

"The growth of non-UPI GMV has driven continued payments revenue growth, and our UPI-led payment volume growth is translating to a significant ramp up of our financial services offering. We are driving digital payments and financial services penetration and widespread adoption across India. Paytm has seen a strong second quarter of FY22, which is a testimony to the strong two-sided ecosystem of consumers and merchants that we have built. We have maintained the growth momentum in our payments services business, expanded our financial services business aggressively and are on our way to pre-COVID volumes for Commerce and Cloud services," said a mote from the company's management. 

Shares of Paytm were down 3.10% at Rs 1,726. The stock entered the bourses on Thursday, 18 November 2021. It was listed at Rs 1955, a discount of 9.07% compared with the initial public offer (IPO) price of Rs 2150. 

The IPO of Paytm was subscribed 1.89 times. The issue opened for bidding on 8 November and it closed on 10 November. The price band of the IPO was fixed at Rs 2080 to Rs 2150 per share. 

Paytm is one the largest payments platform in India based on the number of consumers, number of merchants, number of transactions and revenue ended March 2021. The company launched Paytm in 2009, as a mobile-first digital payments platform to enable cashless payments for customers giving them the power to make payments from their mobile phones. It started with bill payments and mobile top-ups as the first use cases, and Paytm Wallet as the first Paytm Payment Instrument. 

The Paytm app is a payments-led super-app offering consumers with innovative and intuitive digital products and services. It offers consumers a wide selection of payment options on the Paytm app, which include (i) Paytm Payment Instruments, which allow them to use digital wallets, sub-wallets, bank accounts, buy-now-pay-later and wealth management accounts and (ii) major third-party instruments, such as debit and credit cards and net banking.