Paytm's Q4 Revenue Slips By 3% To Rs 2,267 Cr

Paytm, a prominent player in payment and financial services, revealed a 3 per cent decline in revenue for the fourth quarter of FY24, amounting to Rs 2,267 crore. The company attributed this downturn to macroeconomic challenges, competitive pressures and regulatory adjustments. Despite the revenue setback, Paytm emphasised significant strides in enhancing profitability and operational efficiency.

In contrast, revenue from operations surged by 25 per cent year-over-year (YoY) to Rs 9,978 crore for the full fiscal year FY24. This growth was primarily propelled by an uptick in gross merchandise value (GMV), expanded device installations and a broader range of financial services.

GMV soared by 39 per cent YoY to Rs 18.3 lakh crore in FY24, accompanied by a notable rise in merchant subscriptions to 1.07 crore by March 2024, marking an increase of 39 lakh YoY. The company also reported a reduction in overall losses by Rs 354 crore YoY to Rs 1,423 crore, buoyed by improved growth and enhanced operational profitability.

Moreover, Paytm highlighted a robust performance in earnings before interest, taxes, depreciation and amortization (Ebitda) before employee stock ownership plans (ESOPs), reaching Rs 559 crore. Payment services for FY24 amounted to Rs 6,235 crore, driven by the widespread adoption of digital payments and expansion of the merchant base.

In Q4FY24, payment services revenue witnessed a 7 per cent YoY growth to Rs 1,568 crore, while the marketing services business reported a 14 per cent uptick to Rs 1,738 crore. Additionally, UPI incentives for FY24 rose to Rs 288 crore, compared to Rs 182 crore in FY23.

Despite steady state and temporary disruptions during the last quarter, Paytm remains optimistic about future prospects. However, the company anticipates an annualised direct impact on EBITDA of Rs 500 crore in Q1 FY25 due to current embargoes on products like the Paytm wallet and FASTag, operational for most of Q4 FY24.