Paytm shared its financial results for the third quarter of the financial year ending March 2024. As per the earnings report, Paytm had a modest growth in its topline along with a significant improvement in its bottomline.
Marketing and promotional costs stood at Rs 275.2 crore. Paytm also recorded software, cloud and data center costs of Rs 170.4 crore during the quarter which took its total expenditure 9.5 percent up to Rs 3216.3 crore. In Q2 of FY24, the total expenses were at Rs 2,936.7 crore, as per reports.
Employee benefit expenses accounted for 37 percent of the total expenses in Q3 FY24. This cost remained stable at Rs 1,187.2 crore. This also includes an ESOP cost of Rs 378.5 crore.
Paytm’s revenue from operations went up 13.2 percent to Rs 2,850.5 crore in the quarter ending December 2023 as compared to Rs 2,518.6 crore Q2 FY24, according to the firm’s consolidated financial results.
Operating revenue of Paytm surged 38.2 percent from Rs 2,062.2 crore in Q3 FY23.
The company made 38 percent of its income from payment services to merchants. Revenue from this vertical surged 69 percent to Rs 1,081 crore in Q3 FY24 from Rs 640 crore in Q2 of the same financial year.
During the quarter, the company made Rs 598 crore from payment services to consumers, Rs 514 crore from commerce & cloud services, and the remaining Rs 658 crore from other operations.
Employee benefit expenses accounted for 37 percent of the total expenses in Q3 FY24. This cost remained stable at Rs 1,187.2 crore. This also includes an ESOP cost of Rs 378.5 crore.
Paytm brought down its losses by 24 percent in Q3 to Rs 221.7 crore against Rs 291.7 crore in the previous quarter. Last year in the same quarter (Q3 FY23), it recorded Rs 392.1 crore loss. On a unit level, the company spent Rs 1.13 to earn a rupee of operating income in Q3 of FY24.
In December last year, Paytm had reportedly laid off 1,000 employees in a cost-cutting exercise. The company also decided to scale down its small-ticket loans of less than Rs 50,000.