Paytm Lost Rs 5 Crore Every Day In Last 90 Days; But Revenues Jump By 63% To Cross Rs 1000 Crore Mark
Paytm has been in news for quite a while now. Recently, when the company made its debut on the stock market, it received a meek response. The company even was mocked for its abysmal performance on social medial. And it looks like, the latest reports published by the company are also not helping it to regain back public trust. At least in the short run.
Paytm Q2 losses increase to Rs. 473 crore
On Saturday, Paytm published its result for the quarter ended September 30, 2021, According to the report, the digital payments firm saw losses in Q2 increase to Rs 473 crore, up 24 percent sequentially and 8.5 percent annually, as expenses increased.
The company also saw a small dip in contribution margin to 23.9 percent, which has decreased from 27.4 percent in the June quarter. The contribution profit stood at Rs 260 crore, compared to Rs 244 crore in the earlier quarter.
Few positive sides as well
One of the few positive sides of this report is that its revenue from operations for the second quarter of the fiscal jumped 63.6 percent to Rs 1,086.4 crore on a year-on-year (Y-o-Y) basis. This 22 percent increase in revenue from its previous quarter result.
Also, Paytm’s contribution to profit was up as much as 592 percent Y-o-Y to Rs 260 crore due to monetization of a large distribution base through high margin offerings such as lending, advertisements, and commerce offerings, the firm said in a regulatory filing.
“Revenues from Payment and Financial Services went up by 69 percent y-o-y to Rs 8,426 million, driven by 52 percent growth in non-UPI payment volumes (GMV) and growth from Financial Services and Other revenues by more than 3 times,” Paytm said while commenting on the issue.
Increase in monthly transacting users
For Paytm, monthly transacting users in October stood at 63 million, up 35 percent Y-o-Y, and also up from 57 million in Q2. It also saw a growth in its lending business, in Q2, the company disbursed 2.8 million loans.
” 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,” Paytm added further.