Paytm Q2 Results: Company's profitability doubles, revenue soars 32% YoY to Rs 2,519 crore

Paytm Q2 Results: India's leading payments and financial services company and pioneer of QR, Soundbox and mobile payments, Paytm has announced strong June quarter earnings driven by increase in merchants subscription revenues, merchant payment volumes and loan disbursals.

In Q2FY24, the company's revenue surged by 32% YoY to Rs 2,519 crore, and its EBITDA before ESOP cost has improved to Rs 153 crore as compared to Rs 84 crore in Q1FY24 (excluding UPI incentives).

Paytm's payments revenue increased 28% YoY to Rs 1,524 crore while the payments profitability improved with net payment margin expanding 60% YoY to Rs 707 crore.

Its financial services revenue surged 64% YoY to Rs 571 crore in Q2FY24 with the number of loans distributed through the platform was 1.32 crore, an increase of 44% YoY. The value of loans distributed grew to Rs 16,211 crore, surging 122% YoY across its product offerings - Paytm Postpaid, Personal Loans, and Merchant Loans.

Paytm's payments business onboards customers and enables them to distribute suitable credit products. Until September 2023, 1.18 crore unique borrowers have taken a loan through Paytm's platform.

"With the onboarding of Tata Capital, we now have 9 bank and NBFC partners across all our lending products (including credit cards). We continue to work closely with our existing partners, and are on track to add more partners in the remaining financial year," Paytm said in a stock filing.

In Q2FY24, the company's commerce & cloud revenue grew by 12% YoY to Rs 423 crore. Paytm Commerce and Cloud segment monetizes Paytm app traffic by providing marketing services to merchants. Commerce business include travel, movie, entertainment ticketing, deals and gift vouchers and its cloud business includes advertising, co-branded credit cards, marketing cloud, and loyalty business.

The company's leadership in payment monetisation continues with distribution of 92 lakh devices while Paytm's merchant base has grown to 3.8 crore.

User engagement on the fintech platform has an average Monthly Transacting Users (MTU) of 9.5 crore, a jump of nearly 19% YoY. Consumer engagement on the Paytm app continues to remain strong with 33% YoY growth in Paytm App GMV and 43% YoY growth in Paytm App transaction volume.

The company's merchant payments volume (GMV) grew 41% YoY to Rs 4.5 Lakh crore this quarter.

The company believes that India could have potential of 10 crore merchants accepting digital payments due to increasing penetration of credit demand alongside rise of small and medium enterprises.

This is driven by its increased adoption and leadership for in store payments due to their pioneering innovations in India through Paytm Soundbox, Paytm Music Soundbox, Paytm card machines supported by its dynamic Paytm QR. 

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