One97 Communications Pvt., the parent of digital payments platform Paytm, saw its net loss widen in the second quarter even as revenue rose. Higher expenses led to the wider loss.
The company's net loss stood at Rs 473.5 crore in the July-September period compared with Rs 437 crore a year ago, according to its exchange filing. The loss for the three months ended June stood at Rs 382 crore.
Other Highlights
Operating loss stood at Rs 445 crore, flat year-on-year but widened from Rs 371 crore sequentially.
The payments company, listed on the bourses earlier this month, reported revenue from operations worth Rs 1,086 crore, up 64% from a year ago. That was driven by a 52% rise in non-UPI gross merchandise , it said. The unified payments interface is one mode of payments offered by Paytm.
According to data disclosed by the company, revenue from payment services to merchants was up 64% year-on-year to Rs 400 crore, driven by non-UPI payment volume in payment gateway and growth in devices. Payment services to customers added revenue worth Rs 353.6 crore, up 54% over a year earlier.
Paytm's total direct expenses rose 32% year-on-year to Rs 825.7 crore. That was mainly because of payment processing charges, up 36% from a year ago to Rs 670 crore.
Contribution profit rose 592% year-on-year to Rs 260.7 crore.
Contribution margin expanded to 24% in the second quarter from 5.7% as of September 2020.
Sequentially, contribution profit rose 7%, but contribution margin fell from 27.4% as on June 30, 2021.
Gross merchandise for the quarter doubled year-on-year to Rs 1.95 lakh crore.
Number of loans disbursed grew 714% year-on-year to over 28 lakh.
"The lending business continued to show strong growth as a result of the rapid scale-up of all of our lending products, including Postpaid (Buy-Now-Pay-Later), consumer loans and merchant loans," the company said in the filing.
RECOMMENDED FOR YOU
POPULAR