Paytm - Operating Performance Update for Q4 FY 2023

Continued growth in payments and loan distribution business: Leadership in offline payments strengthens with 6.8 million devices deployed; loan disbursements of Rs 4,468 Cr ($544 million) in the month of March 2023 through the Paytm platform.

- Average monthly transacting users (MTU) stood at 90 million for the quarter (average for three months ended March 2023), up 27% y-o-y, reflecting continued expansion of our customer base

- Subscription devices like Soundbox and POS machines continue to see increased acceptance by merchants, driving additional payment monetization for us. Number of merchants paying subscription for payment devices has reached 6.8 million as of March 2023, an increase of 1.0 million in the quarter

- Merchant Payment Volumes (GMV) for the quarter (for three months ended March 2023) stood at Rs 3.62 Lakh Cr ($44 billion), y-o-y growth of 40%

- Our loan distribution business (in partnership with our lender partners) continues to gain scale with disbursements of Rs 4,468 Cr ($544 million, y-o-y growth of 206%) and 4.1 million loans (y-o-y growth of 63%) disbursed in the month of March 2023 through the Paytm platform

Robust growth in Average Monthly Transacting Users (MTU): Growing consumer engagement on the Paytm Super App with the average MTU for the quarter (for three months ended March) at 90 million, registering a growth of 27% y-o-y.

New milestone in offline payments leadership: We continue to strengthen our leadership in offline payments, with 6.8 million merchants now paying subscription for payment devices, an increase of 1.0 million in the quarter ended March 2023. With our subscription as a service model, the strong adoption of devices drives subscription revenues and higher payment volumes, while increasing the funnel for our merchant loan distribution.

Sustained growth in total merchant payments volume: The total merchant GMV processed through our platform for the quarter (for three months ended March) was Rs 3.62 Lakh Cr ($44 billion), marking a y-o-y growth of 40%. Our focus over the past few quarters continues to be on payment volumes that generate profitability for us, either through net payments margin or from direct upsell potential.

Loan distribution business continues to scale: Our loan distribution business (in partnership with top lenders) continues to witness an accelerated growth with total disbursements through our platform for the quarter (for three months ended March) growing 253% y-o-y to Rs 12,554 Cr ($1,528 million).

Our payments consumer and merchant base offers a large addressable market, thereby providing a long runway for growth. We continue to work with our partners to remain focused on the quality of the book.

Shares of One 97 Communications Limited was last trading in BSE at Rs. 638.95 as compared to the previous close of Rs. 637.00. The total number of shares traded during the day was 167501 in over 7070 trades.

The stock hit an intraday high of Rs. 642.45 and intraday low of 631.00. The net turnover during the day was Rs. 106791683.00.

Source : Equity Bulls

Keywords

PayTM INE982J01020 Internet DigitalPayment One97Communications OperatingPerformance Q4FY23 Update