India’s Paytm Says Quarterly Revenue Rises 39% As Loan Demand Soars | Companies News

New Delhi: Indian digital payments firm Paytm (PAYT.NS) reported a 39% rise in quarterly revenue, helped by soaring demand for loans. One 97 Communications Ltd (PAYT.NS), parent of India’s no. 2 digital payments app by market share, reported late Friday that revenue rose 39% year-on-year to 23.42 billion Indian rupees ($285.68 million) in the three-months ending June 30, from 16.80 billion rupees in the year-earlier period.

It reported an operating profit for a third straight quarter, despite a rise in employee-related expenses and a lack of government incentives.

Operating profit came in at 840 million rupees, compared with an operating loss of 2.75 billion rupees, while the net loss narrowed to 3.57 billion rupees.

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That was lower than the previous quarter’s 2.34 billion rupees worth operating profit, which included a government incentive to promote payments via the Unified Payments Interface (UPI) digital payments system.

Paytm defines operating profit as core profit before cost of employee stock-owning plans. It first reported an operating profit for the final three months of 2022 – nine months ahead of schedule.

Quarterly expenses were up 15.9% at 28 billion rupees, with appraisals during the period driving up employee costs 21%.

Paytm, which also rents out devices that confirm payments to merchants, said revenue at its core payments business rose 31%, while financial services revenue, which includes that of the buy now pay later loans, rose 93%.

The company’s fast-growing financial services business formed 22.3% of the total revenue. Its contribution margin — a measure of revenue less cashbacks and charges such as payment processing — rose to 56%, from 43% a year earlier.

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