Paytm Q1 Earnings: Net Loss Widens to Rs840 Crore, Revenue Falls 36%

Synopsis: Paytm's net loss for Q1 FY2024 widened to Rs840 crore, with a 36% drop in revenue. Despite this, operating profit improved to Rs975 crore, and the company remains optimistic about future revenue and profitability growth.

Paytm, operated by One97 Communications, has reported a consolidated net loss of Rs840 crore for the quarter ending June 2024. This marks a significant increase from the Rs357 crore loss recorded in the same quarter last year. The company's revenue also saw a substantial decline, falling 36% to Rs1,502 crore compared to Rs2,342 crore in the June 2023 quarter.

In comparison, Paytm's loss in the previous quarter (March 2024) was Rs550.5 crore. The company’s stock reacted negatively to the news, dropping 4.3% to Rs425.65 on the BSE, and its market capitalization declined to Rs28,155 crore.

Despite the widening net loss, Paytm's operating profit improved, rising to Rs975 crore in Q1 from Rs424 crore in the previous quarter. This contrasts with the June 2023 quarter, where the operating profit was Rs459 crore. Additionally, Paytm managed to reduce its employee expenses by Rs151.9 crore quarter-on-quarter and by Rs153.6 crore year-on-year. The EBITDA loss for Q1 stood at Rs792 crore.

Future Outlook

Paytm remains optimistic about its future performance. The company expects improvements in revenue and profitability, driven by growth in key operational metrics such as Gross Merchandise Value (GMV), an expanding merchant base, and a recovering loan distribution business. Paytm also emphasizes its strong balance sheet, with Rs8,108 crore in cash reserves and stock acquisition rights in PayPay Corporation, representing a 5.4% stake.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Always consult with a qualified financial advisor before making any investment decisions.