- May 22, 2024
Paytm Q4 results: Fintech major’s losses widen to Rs 550 crore – Times of India
Paytm Q4 results: In the fourth quarter ended March 2024, Paytm, the fintech major, reported a significant increase in losses, reaching Rs 550 crore compared to Rs 169 crore in the corresponding quarter of the previous year.
The company’s revenue from operations also experienced a 3% year-on-year decline, amounting to Rs 2,267 crore, in contrast to Rs 2,334 crore in the same quarter of the prior year.
Paytm’s fourth-quarter performance was adversely affected by temporary disruptions caused by the UPI transition and the permanent disruption resulting from the Paytm Payments Bank embargo, according to an ET report.
Consequently, EBITDA before ESOPs decreased to Rs 103 crore in the March quarter, compared to Rs 234 crore in the previous year’s quarter. However, when excluding UPI incentives, the EBITDA before ESOP stood at Rs 185 crore.
The company’s payments business revenue experienced a 7% year-on-year growth, reaching Rs 1,568 crore in the fourth quarter. However, it witnessed a 9% quarter-on-quarter decline due to disruptions in PPBL products, a temporary impact caused by a conservative approach adopted for certain businesses, and disruptions in operating metrics.
Paytm acknowledged that while it faced some challenges in Q4 due to disruptions, the full financial impact will be evident in Q1FY25.
The company also highlighted that the current embargo on Paytm Payment Bank’s products, such as the Paytm wallet and FASTag, which were previously distributed by the company, is expected to have a steady-state annualized direct impact on EBITDA of approximately Rs 500 crore.
The company’s revenue from operations also experienced a 3% year-on-year decline, amounting to Rs 2,267 crore, in contrast to Rs 2,334 crore in the same quarter of the prior year.
Paytm’s fourth-quarter performance was adversely affected by temporary disruptions caused by the UPI transition and the permanent disruption resulting from the Paytm Payments Bank embargo, according to an ET report.
Consequently, EBITDA before ESOPs decreased to Rs 103 crore in the March quarter, compared to Rs 234 crore in the previous year’s quarter. However, when excluding UPI incentives, the EBITDA before ESOP stood at Rs 185 crore.
The company’s payments business revenue experienced a 7% year-on-year growth, reaching Rs 1,568 crore in the fourth quarter. However, it witnessed a 9% quarter-on-quarter decline due to disruptions in PPBL products, a temporary impact caused by a conservative approach adopted for certain businesses, and disruptions in operating metrics.
Paytm acknowledged that while it faced some challenges in Q4 due to disruptions, the full financial impact will be evident in Q1FY25.
The company also highlighted that the current embargo on Paytm Payment Bank’s products, such as the Paytm wallet and FASTag, which were previously distributed by the company, is expected to have a steady-state annualized direct impact on EBITDA of approximately Rs 500 crore.
