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  5. Paytm shares drop after Q4 net losses expand to ₹550 crore: Key takeaways

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Paytm shares drop after Q4 net losses expand to ₹550 crore: Key takeaways

Upstox
By Upstox News Desk

3 min read | Updated on May 22, 2024, 11:39 IST

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SUMMARY

Paytm Q4 results: Paytm, a leading mobile payments company, reported widened losses for Q4 FY24, with revenue at ₹2,267 crore, down 3% YoY. Losses surged to ₹550 crore due to a ₹227 crore impairment on its Paytm Payments Bank Ltd investment. EBITDA before ESOP expenses dropped to ₹103 crore from ₹234 crore. FY24 revenue rose 25% to ₹9,978 crore.

Stock list

PAYTM
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Shares of One 97 Communications Ltd, operator of Paytm, fell as much as 2% to hit an intraday low of ₹344.5 apiece on the NSE.

Shares of One 97 Communications Ltd, operator of Paytm, fell as much as 2% to hit an intraday low of ₹344.5 apiece on the NSE.

Paytm Q4 results: Paytm, a leading mobile payments and financial services distribution company, reported widening of losses for the quarter ended March 2024 (Q4FY24) on Wednesday, May 22.

Shares of One 97 Communications Ltd, operator of Paytm, fell as much as 2% to hit an intraday low of ₹344.5 apiece on the NSE after the release of earning report for the fourth quarter and the entire financial year 2023-24.

Here are the five key takeaways from Paytm’s Q4 earnings statement on Wednesday:

  • Paytm reported a total revenue of ₹2,267 crore during Q4 FY24, a modest decline of 3% compared with the year-ago period.

  • The company said that its Q4 results were impacted by temporary disruption on account of UPI transition and permanent disruption because of PPBL (Paytm Payments Bank Ltd) embargo. To recall, the Reserve Bank of India (RBI) barred PPBL from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, FASTags etc after February 29, 2024, due to the ongoing non-compliance and material supervisory concerns.

  • The company’s net losses in Q4FY24 stood at ₹550 crore as compared to a loss of ₹168 crore in Q4 FY23. Profit was impacted due impairment of ₹227 crore towards the carrying value of company’s investment in PPBL. Excluding this, loss after tax would have been ₹323 crore.

  • In Q4FY24, Paytm’s EBITDA (earnings before interest, tax, depreciation and amortisation) before ESOP (employee stock options) was ₹103 crore as compared to ₹234 crore in Q4 FY23.

  • Paytm’s revenue from operations for full fiscal 2024-25 stood at ₹9,978 crore, up 25% compared with the previous year.

Key operational trends

  • During the March quarter, Paytm’s average monthly transacting users rose 7% YoY to 9.6 crore, while gross merchandise value (GMV) stood at ₹4.7 lakh crore, up 30% YoY

  • Total value of loan distributed declined by 54% YoY to 5,776 crore, while merchant subscriptions for Paytm payment device stood at 1.07 crore, up 58% YoY.

Financial Outlook for Q1FY25

  • The company said it experienced financial impact in Q4 due to the RBI restrictions. However the full financial impact will be seen in Q1 FY 2025, the company informed the stock exchanges. The fintech expects Q1 FY2025 revenue of ₹1,500-1,600 crore and loss at the operating level before ESOP of ₹500-₹600 crore.

  • The company said that it should see meaningful improvement in financials from Q2 FY25, based on restarting certain paused products and achieving steady growth in operating metrics.

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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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