Last Updated on January 20, 2024 by BFSLTeam BFSLTeam
Table of Content
Key Financial Highlights:
- Paytm achieved a noteworthy revenue of ₹2,850 Cr, marking a substantial 38% YoY growth.
- Contribution profit demonstrated a robust 45% YoY increase, reaching ₹1,520 Cr with a margin of 53%, up by 2 percentage points YoY.
- EBITDA before ESOP saw a significant ₹188 Cr YoY boost, reaching ₹219 Cr with a margin of 8%, showing a noteworthy 6 percentage point YoY improvement.
- Profit after tax (PAT) showed positive momentum, improving by ₹170 Cr YoY to (₹222 Cr).
Additional Read: Q3 Results Dashboard
Payment Business:
- Revenue from payment services experienced a commendable 45% YoY growth, totaling ₹1,730 Cr, partly driven by the timing of the festive season.
- The net payment margin surged by an impressive 63% YoY, reaching ₹748 Cr, while GMV demonstrated a robust 47% YoY growth, reaching ₹5.1 Lakh Cr.
- Payment processing margin (excluding UPI incentive this quarter) is within the 7-9bps range.
- The number of merchants paying subscriptions for devices reached 1.06 Cr as of December 2023, indicating a substantial YoY increase of 49 Lakh.
Financial Services Business:
- Revenue from financial services and other sectors experienced a solid 36% YoY growth, amounting to ₹607 Cr, with an improved take rate QoQ.
- Loan distribution witnessed a substantial 56% YoY increase, reaching ₹15,535 Cr.
- The company is expanding its financial services portfolio by venturing into high-ticket loans, insurance distribution, and equity broking.
Additional Read: Paytm Share Price
Financial Performance
- Paytm’s Q3 FY 2024 showcased a robust 38% YoY revenue growth, driven by accelerated GMV, increased device additions, and the expanding financial services business.
- The surge in online sales during the festive season in Q3, as opposed to the previous year’s Q2, played a significant role in this growth.
- Net payment margin exhibited an impressive 63% YoY increase, reaching ₹748 Cr, attributed to higher payment processing margins and a rise in merchant subscription revenues.
- Payment processing margins, in the absence of UPI incentives for the quarter, remained within the 7-9bps range.
- Financial services witnessed a QoQ improvement in take rate, fueled by a higher proportion of merchant and personal loans distribution, along with increased revenue from the insurance distribution business.
- Despite a QoQ reduction in Postpaid loans, communicated in the December 6, 2023 update, the average ticket size of merchant loans and personal loans is anticipated to rise further with an increasing proportion of high-ticket loans.
- Contribution profit soared by 45% YoY to ₹1,520 Cr, driven by the growth in net payment margin and the financial services sector.
- On a QoQ basis, contribution profits experienced a 7% growth, but the margin declined by 3 percentage points due to seasonal factors, including heightened promotions during the festive season, a greater proportion of events business, and slightly lower payment processing margins (in bps) typically seen during festive seasons.
- Capitalising on growth and operating leverage, Q3 FY 2024 EBITDA before ESOP surged by ₹188 Cr YoY to ₹219 Cr, while PAT increased by ₹170 Cr YoY to (₹222 Cr).
Revenue from Operations
Achieved ₹2,850 Cr, driven by increased merchant subscription revenues, higher GMV, and the expansion of loan distribution through our platform.
Contribution Profit
Marked a significant increase to ₹1,520 Cr, with the contribution margin reaching 53%, up by 2 percentage points YoY. This growth can be attributed to the rise in net payment margin and the expansion of our financial services business.
EBITDA before ESOP
Demonstrated a margin improvement to 8%, a substantial 6 percentage points YoY expansion, fueled by overall growth and operating leverage, totaling ₹219 Cr.
Profit After Tax
Showcased improvement, reaching ₹222 Cr, driven by sustained growth and enhanced operating profitability.
Merchant Subscription (including devices)
Maintained leadership in payment monetization by adding 49 Lakh and 14 Lakh new subscriptions in the last year and the quarter, respectively, reaching a total of 1.06 Cr.
Loans Distributed through Paytm
As of December 2023, lending partners have distributed loans to 1.25 Cr unique Paytm consumers and merchants, leveraging our active user and MTU base for significant upsell and lifecycle benefits, totaling ₹15,535 Cr.
About One97 Communications
Paytm is a leading financial services and digital payments company founded by Vijay Shekhar Sharma. The company operates under the parent organisation, One97 Communications, and offers a wide range of financial solutions to its customers. Paytm’s headquarters are located in Noida, Uttar Pradesh, India.
Some of the products and services that Paytm provides are:
– Paytm Wallet: A digital wallet that allows users to store money and make payments for various online and offline transactions.
– Paytm Payments Bank: A banking service that offers savings and current accounts, debit cards, money transfer, and other banking features.
– Paytm Money: A wealth management platform that enables users to invest in mutual funds, stocks, digital gold, and other financial instruments.
– Paytm Insurance: An insurance aggregator that offers life, health, and general insurance products from various insurers.
– Paytm First Games: An online gaming platform that hosts various games, quizzes, and fantasy sports.
– Paytm Insider: An online ticketing and events platform that allows users to discover and book tickets for various live shows, concerts, festivals, and workshops.
– Paytm Mall: An e-commerce platform that sells various products across categories such as electronics, fashion, home, and grocery.
– Paytm for Business: A suite of solutions that helps merchants and businesses accept payments, manage transactions, access credit, and grow their business.
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Source: BSE, Inverter Report Q3 FY’24
