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Paytm Q4FY24 loss widens to Rs 550 cr YoY; FY24 increases 25%
Photo courtesy: UNI

Paytm Q4FY24 loss widens to Rs 550 cr YoY; FY24 increases 25%

| @indiablooms | 22 May 2024, 05:03 pm

New Delhi: Digital payments firm Paytm reported a consolidated loss of Rs 549.6 crore for the fourth quarter of the financial year 2023-24 (Q4 FY24), up from Rs 168.4 crore in the same quarter the previous year, media reported.

Sequentially, the loss increased from Rs 219.8 crore in Q3 FY24, reported Business Standard.

For the entire FY24, the Noida-based company recorded a loss of Rs 1,417 crore, an improvement from Rs 1,776.5 crore in FY23.

Net income declined by 2.6% year-on-year to Rs 2,398.8 crore in Q4 FY24, compared to Rs 2,464.6 crore in Q4 FY23, the report said.

One97 Communications, which operates Paytm, cited "temporary disruptions in business operations" as the reason for the income decline in Q4 FY24, following restrictive measures imposed by the Reserve Bank of India (RBI) on Paytm Payments Bank Ltd (PPBL) in January.

“The company will see the full financial impact in Q1 FY 2025, due to prudent operations risk policies and temporary disruptions, it is confident to see meaningful improvement starting Q2 FY 2025,” said One97 Communications in a press release.

Sequentially, revenue dropped by 20 percent from Rs 2,999.1 crore in Q3 FY24.

However, the overall revenue for the entire FY24 increased by 25.2 percent, reaching Rs 10,524.7 crore compared to Rs 8,400 crore in FY23.

After the restrictions on Paytm Payments Bank, One97 Communications' expenses slightly increased in Q4 FY24 compared to the same quarter in the previous year.

The company spent Rs 2,691.4 crore in Q4 FY24, a 2.3 percent rise from Rs 2,630.5 crore in Q4 FY23.

Sequentially, expenses were reduced by 16.3 percent from Rs 3,216.3 crore in Q3 FY24. For the entire FY24, expenses totaled Rs 11,644.6 crore, up 15 percent from Rs 10,130.4 crore in FY23.

“I am happy to share that we have successfully transitioned our core payment business from PPBL to other partner banks. This move de-risks our business model and also opens up new opportunities for long-term monetization, given our platform’s strength around customer and merchant engagement,” said Paytm founder and chief executive officer Vijay Shekhar Sharma, in a letter to shareholders.

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