One 97 Communications Ltd, the parent company of Paytm, on Monday reported its fiscal third quarter earnings wherein it reported a loss of Rs 208.50 crore, down from a loss of Rs 221.70 crore recorded during the same period of previous financial year. This came after the company had turned black in the second quarter of FY25 with profit for the period at Rs 928.30 crore. The profit during the previous quarter was due to one-time exceptional gain of Rs 1,345 crore, on account of sale of entertainment ticketing business.
For Q3FY25, Paytm posted revenue from operations at Rs 1827.80 crore, down 35.88 per cent in comparison to Rs 2850.50 crore recorded during the same period of previous financial year.
On a sequential basis, the company’s revenue rose 10 per cent due to increase in GMV, healthy growth in subscription revenues and increase in revenues from distribution of financial services. “Growth in net payment margin was largely on account of higher subscription revenue. Payment processing margin continues to remain in the guided range. Higher Financial Services revenue was on account of higher share of merchant loans, higher trail revenue from Default Loss Guarantee (DLG) portfolio, and better collection efficiencies,” the company said in an exchange filing.
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Paytm said that the company managed to reduce its indirect cost by 7 per cent QoQ and 23 per cent YoY to Rs 1000 crore. Going forward, it said, “We expect calibrated growth in marketing costs and sales employee expenses as we invest in customer and merchant acquisition. Our employee costs (excluding ESOP) for 9MFY25 is lower by Rs 451 crore YoY, and will comfortably surpass our targeted annualised people cost savings of Rs 400- 500 crore.”
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