Paytm
Revenue up 38% YoY to ₹2,850 Cr; EBITDA before ESOP of ₹219 Cr, margin improved to 8%
Key Financial Highlights:
1. Paytm reported revenue of ₹2,850 Cr, 38% YoY growth
2. Contribution profit up 45% YoY to ₹1,520 Cr (margin of 53%, up 2 percentage point YoY)
3. EBITDA before ESOP up ₹188 Cr YoY to ₹219 Cr (margin of 8%, up 6 percentage point YoY)
4. Profit after tax (PAT) improved by ₹170 Cr YoY to (₹222 Cr)
Payment Business:
1. Revenue from Payment services up 45% YoY to ₹1,730 Cr, partly boosted by timing of festive season
2. Net payment margin is up 63% YoY to ₹748 Cr; GMV up 47% YoY to ₹5.1 Lakh Cr
3. Payment processing margin (without UPI incentive in this quarter) is in the 7-9bps range
4. Merchant paying subscription for devices has reached 1.06 Cr as of December 2023, an increase of 49 Lakh YoY
Financial Services Business:
1. Revenue from financial services and others up 36% YoY to ₹607 Cr; take rate has improved QoQ
2. Loan distribution was up 56% YoY to ₹15,535 Cr
3. Expanding financial services through high ticket loans, insurance distribution and equity broking
For Q3 FY 2024, Paytm reported 38% YoY revenue growth, due to accelerated GMV growth, higher device
addition, and growth of financial services business. This was partly boosted by the timing of festive seasons
(online sales for the festive season were in Q3, whereas in the previous financial year it was largely in Q2).
Net payment margin has gone up 63% YoY to ₹748 Cr due to increase in payment processing margin and
increase in merchant subscription revenues. Payment Processing Margin is in the 7-9bps range (no UPI
incentives booked during the quarter).
Financial services take rate has improved QoQ due to higher proportion of merchant loans and personal
loans distribution (Postpaid loans reduced QoQ as communicated in the December 6, 2023 update) and
increasing revenue from insurance distribution business. Average ticket size of merchant Loan and personal
will continue to increase further as proportion of high ticket loans continue to increase.
Contribution profit increased 45% YoY to ₹1,520 Cr, due to growth in net payment margin and financial
services business. On a QoQ basis, the contribution profits grew by 7%, but margin declined by 3
percentage points due to seasonal factors, such as higher promotions during festive season, higher
proportion of events business and slightly lower payment processing margins (in bps), typically experienced
during festive season. On back of growth and operating leverage, Q3 FY 2024 EBITDA before ESOP
increased by ₹188 Cr YoY to ₹219 Cr and PAT increased by ₹170 Cr YoY to (₹222 Cr).
