Paytm Q4 Results: Company's revenue increased by 25 percent, now focus will be on insurance and credit growth - Newztezz - Latest News Today, Breaking News, Top News Headlines, Latest Sports News


Wednesday, May 22, 2024

Paytm Q4 Results: Company's revenue increased by 25 percent, now focus will be on insurance and credit growth

There is good news for Paytm. The company has announced its fourth quarter results, according to which Paytm's revenue has increased by 25 percent to Rs 9,978 crore. After the increase in revenue in the quarterly results, the company's focus will be on insurance and credit growth.

Paytm's parent company One97 Communications has released the March quarter results on Wednesday, May 22. In the quarterly results of the fintech company, the company's revenue has increased by 25 percent to Rs 9,978 crore. The company has recorded full year EBITDA of Rs 559 crore after the launch of IPO. After the jump in revenue, the company's focus is now going to be on insurance and credit growth.

Strong growth momentum continued

During the financial year (FY24), the company continued its strong growth momentum in the core payments and financial services distribution business, with revenue from operations growing 25% YoY to ₹9,978 crore in FY24. GMV growth, device growth and growth in financial services contributed significantly to revenue growth.

FY24 has also been a historic year for the company, being the first full year of profitability after the IPO. EBITDA before ESOP is ₹559 crore, which is ₹734 crore more than the previous financial year.

UPI incentive

Paytm has received UPI incentives of ₹288 crore for FY24, compared to ₹182 crore in the previous financial year. Due to better growth and increased operational profitability, net loss for FY24 narrowed by ₹354 crore year-on-year to (₹1,423 crore).

Net payment margin increased

Meanwhile, contributed profit increased 42% to ₹5,538 crore in FY2024, led by growth in net payment margin and high margin financial services business. The company's revenue from payment services grew 26% to ₹6,235 crore in FY24. Whereas in Q4FY24 it increased by 7% year-on-year to ₹1,568 crore. Total loan disbursement value increased by 48% to ₹52,390 crore in FY24.

Paytm's gross merchandise value (GMV) grew 39% year-on-year to ₹18.3 lakh crore in FY24. With a focus on building payments monetization, the company's subscription revenue is growing with 1.07 crore merchants paying for device subscriptions by March 2024, up from 68 lakh by March 2023, growing 58% year-on-year.

Focus will be on these

After the fourth quarter results, the company's focus is on credit growth. For this, the company is focused on increasing loan growth through distribution only through disbursement model, large TAM, wide interest from non-banks and easy technology integration. Under this model the collection will be managed directly by the lending partners. Disbursement of loans alone has continued well and the company has added more lending partners during the quarter, including pilots with banks.

Double focus on insurance and WPD

In FY25, the company's key focus will be to tap the significant consumer opportunities in embedded insurance and wealth product distribution. Capitalizing on the significant opportunity in embedded insurance, the company has recently launched a unique health insurance product combining healthcare, OPD and cashless hospitalization on monthly subscription. With product innovation, leveraging data for underwriting and providing a seamless claims experience across automobile, health, shop, life and embedded insurance.

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