One 97 Communications Limited (OCL), the parent company of Paytm, has announced its financial results for the first quarter of FY25 (Q1 FY2025), revealing a rebound in crucial performance metrics following recent disruptions. The company reported an operating revenue of Rs 1,502 crore, accompanied by an Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) loss of Rs 792 crore. Adjusted for Employee Stock Ownership Plans (ESOPs), the EBITDA loss stood at Rs 545 crore, aligning with its earlier guidance.
The full impact of recent disruptions was evident during Q1 FY2025, affecting both revenue and profitability. Despite these challenges, the company expressed optimism about future growth prospects. It highlighted improvements in merchant payment metrics, such as accelerated reactivation of merchants and an expanding base. Additionally, stringent cost optimization measures contributed positively to its financial performance.
In terms of revenue diversification, Paytm generated Rs 280 crore from financial services and Rs 321 crore from marketing services. The company achieved a contribution profit of Rs 755 crore with a notable 50% margin, underscoring its operational efficiency amidst a challenging business environment.
A spokesperson from Paytm conveyed confidence in the company's trajectory, noting a resurgence in merchant operating metrics and stability in its consumer base. The spokesperson attributed this resilience to continued stakeholder trust and ongoing efforts to enhance platform reliability and service offerings.
Financially robust, Paytm maintains a strong balance sheet with Rs 8,108 crore in cash reserves. The company also holds stock acquisition rights in PayPay Corporation, a strategic investment poised for future growth opportunities.
Operational highlights for Q1 FY2025 included restoring merchant payment metrics to levels seen in January 2024, achieving significant new signups and expanding device deployment. The daily average Gross Merchandise Value (GMV) showed improvement, excluding disrupted products, nearing January 2024 levels, with total GMV reaching Rs 4.3 lakh crore for the quarter. The monthly transacting user base stabilized at approximately 7.8 crore users, indicating robust platform affinity and user retention.
Paytm continues to focus on cost optimisation initiatives, achieving a 9% quarter-on-quarter reduction in employee costs and targeting annual savings objectives.
Beyond core operations, Paytm is driving monetisation through expanded offerings in loans, wealth products, and insurance distribution. This includes tailored insurance products leveraging merchant insights and consumer-focused solutions such as motor and health insurance plans.
Looking ahead, Paytm aims to strengthen its market leadership in merchant payment innovations, introduce new devices, and expand its footprint in insurance and mutual fund distribution. These strategic areas are expected to fuel revenue growth and enhance market penetration.
In conclusion, Paytm's Q1 FY2025 results underscore its resilience amidst adversity and its strategic focus on sustainable growth across its diversified business portfolio.
