New Delhi: Indian digital payments firm Paytm (PAYT.NS) reported a 39% jump in quarterly revenue on the back of rising loan demand. One 97 Communications Limited (PAYT.NS), the parent of India’s no. The 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 ended June 30, from 16.80 billion rupees in the year-ago period.
It reported operating profit for the third consecutive quarter, despite a rise in employee-related expenses and lack of government stimulus.
Operating profit stood at ₹840 million, while operating loss was ₹2.75 billion, while net loss narrowed to ₹3.57 billion.
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This was lower than the previous quarter’s operating profit of Rs 2.34 billion, which included government incentives to promote payments through the Unified Payments Interface (UPI) digital payment system.
Paytm defines operating profit as core profit before the cost of employee stock-ownership plans. It reported operating profit for the last three months of 2022 for the first time – nine months ahead of schedule.
Quarterly expenses rose 15.9% to Rs 28 billion, with employee costs rising 21% from valuations during the period.
Paytm, which also rents out payment-verifying equipment to merchants, said revenue in its core payments business grew 31%, while financial services revenue, which includes buy now, pay later loans, soared 93%.
The company’s fast-growing financial services business accounted for 22.3% of total revenue. Its contribution margin — a measure of revenue after deducting fees such as cashback and payment processing — rose to 56% from 43% a year ago.