One97 Communications Limited- Q2 Results

Last Updated on October 28, 2023 by BFSLTeam BFSLTeam

Introduction

One97 Communications Limited is the parent company of Paytm, the Indian multinational financial technology company. The entity was established in 2000 and has its headquarters in Noida. One97 Communications provides digital payment and financial services through its subsidiaries and businesses, along with mobile advertising, marketing, and payments for merchants.

The company announced its financial results for Q2 of FY 2023-24 on October 20th after the close of market hours. One97 Communications reported revenue of ₹2,518.6 Cr, a 32% YoY growth during the period under review. Here’s a snapshot of its performance during the second quarter of the fiscal year.

Additional Read: Q2 Results Dashboard

Key Financial Metrics

Performance Highlights

• One97 Communications Limited reported a loss of ₹291.7 Cr for Q2 FY 2023-24.
• The company’s total revenue from operations rose 32% YoY to ₹2,518.6 Cr.
• The contribution profit grew 69% to ₹1,426 Cr (margin of 57% and expansion of 13 percent points YoY).
• The company’s EBITDA before ESOP increased by ₹319 Cr YoY to ₹153 Cr (margin of 6%, up 15 percent points YoY).

The company announced that its revenue growth during Q2 of the fiscal year was led by an increase in the Gross Merchandise Value (GMV), merchant subscription revenues, and the loans distributed through the Paytm platform. Its total revenue from operations increased to ₹2,518.6 Cr, with a 32% YoY revenue growth compared to ₹1,914 Cr during Q2 of FY 2022-23 and 7.5% QoQ growth against ₹2,341.6 Cr in Q1 FY 2023-24.

Additionally, the company mentioned that some of the revenues were pushed to Q3 FY 2023-24, and online sales for the festive season will be captured in the third quarter.

During Q2 of FY 2023-24, One97 Communications reported a loss of ₹291.7 Cr, nearly halving from the net loss of ₹571.5 Cr reported during the corresponding period last year. In comparison, the company reported a loss of ₹358.4 Cr in the first quarter of this fiscal year.

Additional Read: Paytm Share Price

Payment and Loan Distribution Business

One97 Communications reported that the payment revenues grew 28% YoY and almost 8% QoQ to ₹1,524 Cr during the second quarter. Meanwhile, the subscription revenue also witnessed growth, with subscriptions reaching 92 lakhs, an increase of 44 lakhs YoY and 14 lakhs QoQ.

Furthermore, as per the exchange filing, almost 60% of the revenue in Q2 FY 2023-24 came from payment services, including the subscription revenue from merchants that chose its soundbox devices and other value-added services. 23% of the total revenue for the quarter came through other revenue sources, such as loan distribution and other credit products.

The revenue generated through financial services and others increased 64% YoY to ₹571 Cr, while the number of unique customers who availed of loans through the Paytm platform touched 1.18 Cr. The distribution of loans grew by 122% YoY at ₹16,211 Cr.

Management Commentary

Major Announcements

• Antfin (Netherlands) Holding B.V’s shareholding in the company decreased from 23.79% to 9.90% of the total equity share capital.
• Resilient Asset Management B.V., an overseas company completely owned by Mr. Vijay Shekhar Sharma, now holds 10.30% of the total equity share capital, making him the only SBO of the company, with his shareholding in Paytm (direct and indirect) now standing at 19.42% of the total equity share capital.
• The company announced that Paytm Payments Services Limited (PPSL) is still pursuing the Government of India for requisite approval for past investment from One97 Communications Limited into PPSL, as per the FDI Guidelines.
• During the quarter (October), the Reserve Bank of India (RBI) levied a penalty in the amount of ₹5.39 Cr on Paytm Payments Bank Limited (PPBL), and further supervisory engagement with RBI is in progress.

One97 Communications Limited: H1 Consolidated Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Total income	₹3,795.2 Cr	₹5,126.7 Cr
Revenue from operations	₹3,593.6 Cr	₹4,860.2 Cr
Total expenses	₹4,977.6 Cr	₹5,736.8 Cr
Loss before tax	₹1,197.6 Cr	₹633 Cr
Loss after tax	₹1,216.9 Cr	₹650.1 Cr
Total comprehensive loss	₹1,310.8 Cr	₹752.6 Cr

One97 Communications Limited: Consolidated Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Total income	₹2,464.2 Cr	₹2,662.5 Cr
Revenue from operations	₹2,341.6 Cr	₹2,518.6 Cr
Total expenses	₹2,800.1 Cr	₹2,936.7 Cr
Loss before tax	₹354 Cr	₹279 Cr
Loss after tax	₹358.4 Cr	₹291.7 Cr
Total comprehensive loss	₹453.2 Cr	₹299.4 Cr

One97 Communications Limited: H1 Standalone Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Total income	₹2836.9 Cr	₹4,083 Cr
Revenue from operations	₹2,649.8 Cr	₹3,824.9 Cr
Total expenses	₹4,053.7 Cr	₹4,731.8 Cr
Loss before tax	₹1,216.8 Cr	₹656.5 Cr
Loss after tax	₹1216.8 Cr	₹656.5 Cr
Total comprehensive loss	₹1,220.7 Cr	₹663 Cr

One97 Communications Limited: Standalone Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Total income	₹1,972 Cr	₹2,111 Cr
Revenue from operations	₹1,844.6 Cr	₹1,980.3 Cr
Total expenses	₹2,302.8 Cr	₹2,429 Cr
Loss before tax	₹332.8 Cr	₹323.7 Cr
Loss after tax	₹332.8 Cr	₹323.7 Cr
Total comprehensive loss	₹338.4 Cr	₹324.6 Cr

Consolidated Assets and Liabilities

Particulars	As of September 30, 2023
Total non-current assets	₹6,567.3 Cr
Total current assets	₹12,584.7 Cr
Total assets	₹19,152 Cr
Total equity	₹13,027.7 Cr
Total non-current liabilities	₹412.4 Cr
Total current liabilities	₹5,711.9 Cr
Total liabilities	₹6,124.3 Cr
Total – Equity and liabilities	₹19,152 Cr

Stock Performance

One97 Communications Limited released the quarterly results for FY 2023-24 after the closing of market hours on October 20th. On the following morning, its shares opened at ₹972.95 and, at 2:02 PM, grew by 1.93% to ₹987.35 on the BSE.

About the Company

One97 Communications Ltd. (OCL) was established by Mr. Vijay Shekhar Sharma in 2000 and has its headquarters in Noida, New Delhi. The entity launched Paytm, one of India’s leading Fintech companies today, in 2009 to facilitate cashless payments. One97 currently owns various businesses and subsidiaries, including Paytm Payments Bank, Paytm Money, and Paytm Postpaid.

---

Sources:

https://paytm.com/document/ir/financial-results/Paytm_Financial_Results_Q2_FY2024.pdf

https://paytm.com/document/ir/financial-results/Paytm_Q2_FY24_Earnings_Release_INR.pdf