Paytm Q4 Results: Loss widens to Rs 762 crore in Q4, earnings up 89 percent
Paytm’s fourth quarter loss widens
Income stood at Rs 1,541 crore with an increase of 89 per cent over the previous year. Which was at the level of Rs 815.3 crore on one year. However, the expenditure on employees has more than doubled to Rs 863.4 crore.
Paytm’s parent company One97 Communications on Friday announced its March quarterly results ,Quarterly Results) have been issued. According to the company, its loss has increased to Rs 762.5 crore during the quarter. The company had a loss of Rs 444.4 crore in the same quarter last year. Although the company has seen a sharp jump in earnings during the quarter, Paytm ( Paytm) said that it will continue to earn profit at EBITDA level by the second quarter of FY 2023 (Profit) is increasing in the upwind direction. The company’s gross merchandise value has increased by 104 percent during the quarter. During the quarter, the company has disbursed loans worth Rs 3,553 crore, of which Buy Now Pay Later ie BNPL (Buy now pay later) has a share of Rs 2,183 crore.
How were the fourth quarter results?
Paytm’s losses may have increased compared to last year, but there has been a limited improvement quarter-on-quarter. Paytm’s loss in the December quarter was Rs 778.4 crore. The company’s income from business stood at Rs 1,541 crore, a growth of 89 percent over the previous year. Which was at the level of Rs 815.3 crore on one year. However, the expenditure on employees has more than doubled to Rs 863.4 crore.
At the same time, payment processing charges have increased by 52 percent to Rs 774.2 crore. During this, GMV is at the level of Rs 2.6 lakh crore with an increase of 104 percent over the previous year. GMV or Gross Merchandise Value is the total payment made to the merchants through the Paytm app in a given period. It does not include money remitted from customer to customer.
Paytm results came after the close of the market. However, there was an increase in the stock in Friday’s trading and the stock rose more than 3 percent to the level of 572. Due to continuous loss, Paytm has proved to be a big loss deal for its investors. Its price has fallen by more than 70 percent from its issue price.
RBI’s action on Paytm Payments Bank during the quarter
During the March quarter itself, the Reserve Bank has banned Paytm Payments Bank from adding new customers. The Reserve Bank had said that this ban on Paytm Payments Bank has been imposed after concerns related to supervision came to the fore. Along with this, the Reserve Bank has asked Paytm Payments Bank to audit its entire IT system. In its instructions, the Reserve Bank said that the permission to add new customers by Paytm Payments Bank will be considered after reviewing the report of the IT audit company appointed by the Reserve Bank.
Paytm Payments Bank supports 33 crore Paytm wallets and with the help of this, customers can transact in more than 87 thousand online merchants and more than 20 million stores. The bank processes various types of transactions which include Paytm Wallet, Paytm Fastag, Net Banking and Paytm UPI.
