Paytm achieves operating profitability, revenues of ₹2,062 Cr, Vijay Shekhar Sharma says free cash flow generation is next

–       Paytm has achieved the milestone significantly ahead of its September guidance

–       Revenue from operations increased to ₹2,062 crore

 

Paytm, India’s leading payments and financial services company and the pioneer of QR and mobile payments, has announced Q3 FY 2023 results. The company has achieved its operating profitability milestone with EBITDA before ESOP cost at ₹31 Crore, significantly ahead of its guided timeline of September 2023. EBITDA before ESOP margin stood at 2% of revenues as compared to (27%) a year ago.

Paytm continued to witness strong revenue momentum across its businesses. The company’s revenue from operations increased to ₹2,062 crore (no UPI incentive recorded this quarter), a growth of 42% YoY and 8% QoQ. Contribution profit was ₹1,048 Cr in the quarter, with margins consistently improving from 31% in Dec-21 to 51% in Dec-22 while net payment margin grew to ₹459 Cr (up 120% YoY) on back of improved profitability in the payments business.

Revenue from financial services, which is majorly loan distribution, now accounts for 22% of total revenues, up from 9% in Q3 FY2022. The company’s loan distribution business saw further scale with 10.5 million loans amounting to ₹9,958 Cr disbursed in the quarter (in partnership with its lending partners). Paytm’s operating leverage is demonstrated by reduction in indirect expenses (as a % of revenues), down to 49% in Dec-22 from 58% in Dec-21.