India’s Paytm post sees quarterly earnings increase as loan growth surges

BANGALORE, Nov 7 (Reuters) – Indian digital payments company Paytm (PAYT.NS) reported a 76% increase in second-quarter revenue, helped in part by surging loan growth, with the company reiterating that it will be profitable by September 2023. .

Paytm’s parent company One 97 Communications Ltd said revenue for the quarter from July to September increased to INR 19.14 billion ($233.81 million) from INR 10.86 billion in the same period last year. .

Consolidated net loss increased to Rs.5.71 billion from Rs.4.73 billion in the same period last year due to sharp increase in expenses related to employee benefits and payment processing costs.

The reported quarterly earnings surge was lower than the 88.5% increase Paytm posted in the first quarter.

Revenue from the company’s core business of payment services (consumers and merchants using the app and revenue from device subscriptions) increased by 55.6% to Rs 11.73 billion in the second quarter. rice field.

Its net payment margin, or payment income less processing costs, increased by 15% from the previous quarter to Rs 4.43 billion. Paytm’s average monthly trading users increased by 39% year-on-year.

Revenue from the company’s fast-growing financial services business (primarily post-purchase, personal and commercial loans) nearly quadrupled to Rs 3.49 billion.

Loan disbursements surged to Rs 73.13 billion in the reported quarter, the company said. Said last month.

The company said there was no “clear timeline” for when Paytm Payments Bank would be allowed to register new customers after the Central Bank of India’s ban in March.

The company added that the central bank’s views were mainly about strengthening IT outsourcing processes and managing operational risks.

($1 = 81.8600 Indian Rupees)

Reported by Anuran Sadhu and Juby Babu of Bengaluru. Editing by Shounak Dasgupta

Our criteria: Thomson Reuters Trust Principles.

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