Paytm Q3 Result: Country’s leading payments and financial services provider Paytm said it has achieved operating profit with EBITDA before ESOP cost of Rs 31 crore. This growth has been achieved much ahead of the company’s guidance of September 2023. This growth has been driven by consumer adoption and subscription services by merchant partners as well as the continued growth seen in loan disbursements and business.
Strong increase in company’s revenue
On the other hand, if we talk about the company’s revenue, the revenue from operations has increased by 42 percent on year-on-year basis to Rs 2062 crore. (No UPI incentives were recorded in this this year.) On the other hand, on a quarterly basis, an increase of 8 percent has been achieved.
Paytm founder Vijay Shekhar Sharma wrote a letter to the shareholders
Vijay Shekhar Sharma, Founder and CEO of Paytm, has written a letter to the shareholders announcing the achievement. He added that “This has been possible because of the consistent and focused work by our team. The team was asked to focus on growth with quality revenue. We have done this without losing sight of the growth opportunities and with all the compliances.” Along with keeping the risk factors under strict vigilance, this milestone has been achieved.
Company will achieve next milestone soon- Vijay Shekhar Sharma
Paytm founder Vijay Shekhar Sharma said that the next milestone for the company would be free-cash flow generation. He said that our focus is on growth and keeping in mind the operational risk and other concerns, I am confident that our next step is to become a free-cash flow generating company. Paytm’s EBITDA before ESOP margin stood at 2 per cent of revenue as against 27 per cent a year ago. Paytm’s Ebitda before ESOP margin stood at 2 per cent of revenue compared to a year-ago (27 per cent), driven by steady improvement in contribution margin and strong operating profit. The company said that it has continued to witness strong revenue momentum in its business and will continue to do so.
Other great company statistics
Vijay Shekhar Sharma said that the process of achieving strong revenue of the company will continue. Paytm’s contribution profit for the quarter was Rs 1,048 crore, with margin steadily improving from 31 per cent in December 2021 to 51 per cent in December 2022. There has been an improvement in the profitability of the payments business and an increase in higher margin business mix such as loan distribution. Net payment margin increased to Rs 459 crore (up 120% year-on-year) due to better profitability in the payments business.
Substantial reduction in indirect expenses of the company
There has been a tremendous increase in the number of users taking loans from Paytm’s platform and they are getting a lot of benefits. The company’s indirect expenses have also come down drastically and have come down to 49 per cent in December 2022 as against 58 per cent in December 2021.
Paytm will continue to invest in new areas
The company also says that it will maintain discipline and continue to invest in areas where it sees growth potential. Such as investing in marketing and sales team to further expand its merchant base and subscription services. Paytm will continue to work on the concept of long term sustainable and cash generating business.
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