The strength of One 97 Communications, which owns Paytm, one of the largest digital payments platforms in the country, is once again visible. The company’s operating revenue is improving quarter on quarter and has crossed the Rs 1,500 crore mark in the first quarter (April-June) of the current financial year. Paytm has recently enhanced its services and apart from UPI payments, it has been focusing on QR code payment service, sound boxes and other financial products.
Paytm had conducted the largest IPO in the country so far. The founder of the company, Vijay Shekhar Sharma, has recently taken many important decisions, the impact of which is visible on its functioning. Now the company has announced its quarterly results. Due to improved operating income, the overall losses of the company have come down.
Paytm’s operating income improves
In the information provided to the stock exchange, Paytm said its operating revenue in April-June was Rs 1,502 crore. After calculating the company’s earnings before tax (EBITDA), its net loss was Rs 792 crore. The company says that due to better revenues, its profitability is also expected to improve in the coming time.
The company’s revenue from financial services was Rs 280 crore. While the company earned a revenue of Rs 321 crore from marketing services. The company’s profit margin has been 50 per cent resulting in a contribution profit of Rs 755 crore. The company’s balance sheet has improved and it has a cash of Rs 8,108 crore.
Paytm spokesperson says our consumer base has stabilised. There is an improvement in merchant operational metrics. This shows our path to better recovery in the coming days.
Due to these reasons, Paytm recovered
Paytm has said in its financial results that its merchant payments operating business has returned to the level of January 2024. The company has again started installing its QR codes and sound boxes at merchants. The company’s merchant subscriber base has improved and has now reached 1.09 crore.
Similarly, the total realised business value (GMV) on the Paytm platform also returned to the pre-January 2024 level. It stood at Rs 4.3 lakh crore in the June quarter. Moreover, the company has also paid close attention to cost optimisation.
