New Delhi, May 22 (SocialNews.XYZ) Payment and financial services company Paytm on Wednesday reported 3 per cent decline in its revenue for the fourth quarter of FY24 to Rs 2,267 crore.
The decline, said the company, was primarily influenced by macroeconomic challenges, competitive intensity and regulatory changes.
Despite the revenue dip, Paytm said it achieved significant progress in improving its profitability and operational efficiency.
Revenue from operations witnessed an increase of 25 per cent year-over-year (YoY), reaching Rs 9,978 crore in the full fiscal year (FY24).
This growth was primarily driven by an increase in gross merchandise value (GMV), expansion in device additions, and the expansion of financial services offerings.
Paytm’s Gross Merchandise Value (GMV) increased 39 per cent YoY at Rs 18.3 lakh crore in FY24.
As of March 2024, merchant subscriptions were 1.07 crore, increasing by 39 lakh (YoY).
Overall loss fell by Rs 354 crore YoY to Rs 1,423 crore, on the back of improved growth and increased operational profitability.
Additionally, Paytm's earnings before interest, taxes, depreciation and amortisation (EBITDA) before employee stock ownership plans (ESOPs) surged to Rs 559 crore, said the company.
Paytm's Payment Services for FY24 stood at Rs 6,235 crore. This growth was driven by the widespread adoption of digital payments and Paytm's continued focus on expanding its merchant base, the company added.
In Q4FY24, payment services revenue grew by 7 per cent YoY to Rs 1,568 crore.
The marketing services business reported 14 per cent growth to Rs 1,738 crore.
The UPI incentives for FY24 amounted to Rs 288 crore, compared to Rs 182 crore in FY23.
The user engagement on the platform exhibited a positive trend, with an increase of 7 per cent YoY in average monthly transacting users (MTU) for Q4 FY24, reaching 9.6 crore.
During the last quarter, the company experienced several steady state and temporary disruptions.
“PPBL products like the Paytm wallet and FASTag were distributed by Paytm. Due to the current embargo on these products, we anticipate the steady state annualised direct impact on EBITDA to be Rs 500 crore as previously disclosed,” the company said in its regulatory filing.
Most of this impact will be in Q1 FY25 as these products were operational during most part of Q4 FY 2024, it added.
Source: IANS
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