Revenue from operations in the third quarter jumped 38% to Rs 2,850 crore as against Rs 2,062 crore in the corresponding quarter of the previous year.
EBITDA (before ESOP) improved during the December quarter to Rs 219 crore, with a margin of 8%. Contribution profit, meanwhile, rose 45% year-on-year to Rs 1,520 crore.
The solid revenue show is due to accelerated GMV growth, higher device addition, and growth of the financial services business. This was partly boosted by the delay of festive season into the third quarter.
GMV during the reporting period rose 47% year-on-year to Rs 5.1 lakh crore. It was Rs 3.5 lakh crore in the same period last year.
Segment wise, revenue from the payment services business was up 45% year-on-year to Rs 1,730 crore. Net payment margin has shot up 63% year-on-year to Rs 748 crore due to increase in payment processing margin and in merchant subscription revenues.
The company said payment processing margin was in the range of 7-9 during the quarter under review (without UPI incentives booked in Q3).Merchant paying subscription for devices has reached 1.06 crore, as of December 2023, an increase of 49 lakh year-on-year.
Revenue from the business of financial services and others increased 36% year-on-year to Rs 607 crore. Loan distribution during the quarter was up 56% year-on-year to Rs 15,535 crore.
Financial services take rate has improved sequentially due to higher proportion of merchant and personal loan distributions and increasing revenue from insurance distribution business.
Paytm expects average ticket size of merchant and personal loans to increase further as proportion of high-ticket loans rise.
On Friday, Paytm shares closed 1.58% higher at Rs 766.2 on the NSE.
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