One97 Communications Ltd., the owner and operator of payments giant Paytm, posted a reduction in its second-quarter loss, as revenue grew about 8%.
The Vijay Shekhar Sharma-led fintech's consolidated net loss fell sequentially to Rs 291.7 crore in the quarter ended September, according to its exchange filing. That compares with the Rs 285.2-crore consensus estimate of analysts tracked by Bloomberg.
One97 Communications Q2 FY24 Key Highlights (Consolidated, QoQ)
Revenue up 7.5% to Rs 2,518.6 crore (Bloomberg estimate: Rs 2,564.4 crore).
Ebitda loss narrowed to Rs 231 crore versus Rs 292.1 crore (Bloomberg estimate: Ebitda loss of Rs 119.6 crore).
Net loss narrowed to Rs 291.7 crore from Rs 358.4 crore (Bloomberg estimate: Net loss of Rs 285.2 crore).
Of the company's total revenue, its payment business contributed about Rs 1,524 crore and the loan distribution segment contributed Rs 571 crore.
The company's Ebitda before ESOP costs, that is its earnings excluding share-based payments, has also risen to Rs 153 crore from Rs 81 crore in the previous quarter.
"Revenue growth was led by increase in gross merchandise value, merchant subscription revenues, and growth of loans distributed through our platform. There are no UPI incentives booked during the quarter," the Noida-based company said in a statement alongside the earnings.
Paytm said its net payment margin has gone up 60% year-on-year to Rs 707 crore due to an increase in payment processing margin and merchant subscription revenue. It also said the Rupay credit card on UPI is "seeing good adoption by consumers". "We believe, over a longer period of time, this has a potential of becoming a decent revenue stream for UPI payments," it said.
Shares of Paytm ended 1.93% higher on Friday at Rs 987.35 apiece, as compared with a 0.35% decline in the benchmark Sensex.
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