Paytm reports Rs 1,501.6 Cr revenue and Rs 840 Cr loss in Q1 FY25

Fintech firm Paytm’s revenue from operations shrank 33.8% to Rs 1,501.6 crore during the first quarter of fiscal year ending June 2024 (Q1 FY25) as compared to Rs 2,267.1 crore in Q4 of FY24, according to the company's unaudited consolidated quarterly report filed with the National Stock Exchange.

Compared to the corresponding quarter of FY24 (Q1 FY24), Paytm saw a 35.87% decline in scale from Rs 2,341.6 crore.

Besides operating revenue, Paytm also earned Rs 137.5 crore via interest and gains from financial assets during the quarter which took its overall revenue to Rs 1,639.1 crore.

On the expense front, Paytm’s employee benefits costs formed 38.5% of the total expenditure during the period. This cost slipped 13.75% to Rs 952.5 crore (including share-based payment expenses of Rs 246.8 crore) in Q1 of FY25 from Rs 1,104.4 crore in the previous quarter (Q4 of FY24).

Payment processing expenses also went down 27.66% to Rs 517.1 crore on a quarterly basis from Rs 714.8 crore in the previous quarter.

Meanwhile, spendings on marketing and promotions inclined 72% to Rs 221.4 crore during the quarter whereas IT infrastructure (software, cloud, and data center) cost increased 12.38% to Rs 182.4 crore. 

At the end, the company’s total expenses declined 8% to Rs 2,476.4 crore in Q1 of FY25 in comparison to Rs 2,691.4 crore in Q4 FY24.

The tumbling business resulted in a rise in quarterly losses which spiked over 52.6% to Rs 840 crore during the quarter (Q1 of FY25) against Rs 550.5 crore in the previous quarter. Compared to the corresponding quarter of the previous fiscal year (Q1 FY24), the company’s losses surged 134.4% from Rs 358.4 crore.

On a unit level, Paytm spent Rs 1.65 to earn a rupee of operating income during the quarter.

Despite regulatory hurdles and subsequent revenue decline, Paytm is optimistic about its future. The company is banking on the rebound in key metrics, especially the merchant base. 

Paytm says its rising merchant base has exceeded 1.09 crore while daily transaction values are reaching pre-pandemic levels. Moreover, the customer base remains stable at 7.8 crore, with a positive trend of increasing average transaction value per customer, it highlighted.

Furthermore, Paytm appears to have made quite a few adjustments to focus on cost optimization. This includes a reduction in employee costs and expanding its fintech offerings.