Paytm June quarter loss widens to Rs 839 crore, revenue falls 36%

Paytm Q1 results: One97 Communications Ltd., the parent company of digital payments giant Paytm, reported its financial results for the quarter ended June 30, 2024, showcasing a significant decline in revenue and an increase in net loss.

The company’s net loss widened to Rs 840 crore for Q1 FY2024 from Rs 584 crore in the same quarter of the previous year. Paytm's revenue from operations dropped by 36 per cent, falling to Rs 1,501.6 crore compared to Rs 2,341.6 crore in Q1 FY2023.

The total income of the company including other sources, stood at Rs 1639.1 crore, down from Rs 2,464.2 crore in the corresponding period last year. The company’s total expenses increased to Rs 2,476.4 crore from Rs 2,800.1 crore in Q1 FY2023, with notable costs in payment processing, marketing, and employee benefits.

Q1 earnings snapshot

• Payment Processing Charges: Rs 517.1 crore, down from Rs 766.6 crore.
• Marketing and Promotional Expenses: Rs 221.4 crore, a decrease from Rs 265.3 crore.
• Employee Benefits: Rs 952.5 crore million, slightly lower than Rs 1,106.1 million in the previous year.
• Software, Cloud, and Data Centre Expenses: Rs 182.4 crore, compared to Rs 155 crore last year.
• Depreciation and Amortisation: Rs 178.4 crore up from Rs 159.1 crore.
• Finance Costs: Rs 4.2 crore, reduced from Rs 6.7 crore.
• Other Expenses: Increased to Rs 420.4 crore from Rs 341.3 crore.
   

The total comprehensive loss for the quarter amounted to Rs 907.3 crore, reflecting a significant increase from the previous year's figure of Rs 453.2 crore. This loss is attributed to both the equity holders of the parent company and non-controlling interests.

Paytm shares traded 0.81 per cent higher at Rs 448.65, following earnings announcement.