Paytm parent One 97 Communications Ltd. posted a third consecutive quarter of profit, with a consolidated bottomline of Rs 225 crore in the October-December period as against Rs 21 crore in the preceding quarter. Analysts' consensus estimates compiled by Bloomberg projected Rs 197 crore.
The sequential net revenue ticked up 6.5%, rising to Rs 2,194 crore as against Rs 2,061 crore in the September quarter. The growth was led by higher payments GMV, merchant subscriptions, and distribution of financial services revenue, a statement said.
Paytm Q3 Results (Consolidated, QoQ)
- Revenue up 6.5% At Rs 2,194 crore versus Rs 2,061 crore (Bloomberg estimate: Rs 2,186 crore)
- Ebitda up 10.6% At Rs 156 crore versus Rs 141 crore (Bloomberg estimate: Rs 172 crore)
- Margin at 7.1% Vs 6.8% (Bloomberg estimate: 7.08%)
- Net profit At Rs 225 crore versus Rs 21 crore (Bloomberg estimate: Rs 197 crore)
Like-for-like revenue growth was 25%, with growth reflecting timing of festive season, lower loan distribution under default loss guarantee (DLG), and a more conservative revenue recognition policy.
Paytm's Gross Merchandise Value (GMV) in Q3 increased 24% year-on-year to Rs 6.2 lakh crore. "We continue to see increase in payment processing margin on account of higher growth of credit cards including credit card on UPI and affordability offerings (such as EMI). Payment processing margin is now trending comfortably above 4 bps," the statement said.
Revenue from payments services surged 21% to Rs 1,284 crore and financial services jumped 34% to Rs 672 crore. Paytm merchant subscriptions added 27 lakh devices to reach 1.44 crore.
Paytm said other income is expected to decline from Q4 onwards due to reinvestment of maturing investments at lower yields following a 125 bps repo rate cut over the past year, and an increase in the MTF (Margin trade funding) book, which generates operating income.
Further, starting FY27, income tax expense is expected to apply to ‘Other Income', which primarily comprises interest income. Operating profits will continue to be offset against carry-forward losses from prior periods, the statement said.
Shares of One 97 Communications settled 0.7% lower at Rs 1168.7 on the BSE, ahead of the results, compared to a 0.3% advance in the benchmark Sensex. The stock has risen 43% on a 12-month basis.
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