paytm-reports-3-decline-in-q4-fy24-revenue-achieves-25-yoy-revenue-growth

Payment and financial services company Paytm reported a 3% decline in its revenue for the fourth quarter of fiscal year 2024, reaching Rs 2,267 crore. The company attributed the dip to macroeconomic challenges, competitive pressures, and regulatory changes.

 

Despite the revenue decline, Paytm noted significant progress in profitability and operational efficiency. Revenue from operations increased 25% year-over-year, totaling Rs 9,978 crore for FY24.

 

This growth was largely driven by a rise in gross merchandise value (GMV), an increase in device additions, and the expansion of financial services offerings.

 

Paytm’s GMV surged 39% year-over-year to Rs 18.3 lakh crore in FY24. As of March 2024, merchant subscriptions rose to 1.07 crore, an increase of 39 lakh from the previous year.

 

The company’s overall loss decreased by Rs 354 crore year-over-year, amounting to Rs 1,423 crore, due to improved growth and increased operational profitability.

 

 Additionally, earnings before interest, taxes, depreciation, and amortisation (EBITDA) before employee stock ownership plans (ESOPs) jumped to Rs 559 crore.

 

Paytm’s Payment Services for FY24 generated Rs 6,235 crore, fueled by the widespread adoption of digital payments and the expansion of its merchant base. In Q4 FY24, payment services revenue grew 7% year-over-year to Rs 1,568 crore.

 

The marketing services business reported a 14% increase, reaching Rs 1,738 crore. UPI incentives for FY24 were Rs 288 crore, compared to Rs 182 crore in FY23.

 

User engagement on the platform also showed a positive trend, with average monthly transacting users (MTU) increasing 7% year-over-year in Q4 FY24, reaching 9.6 crore.

 

During the last quarter, Paytm experienced both steady-state and temporary disruptions. The company noted that products distributed by Paytm Payments Bank Limited (PPBL), such as the Paytm wallet and FASTag, faced an embargo.

 

This is expected to have a steady state annualised direct impact on EBITDA of Rs 500 crore, primarily affecting Q1 FY25, as these products were operational for most of Q4 FY24.