Paytm Reports Fiscal Year 2024 Financial Results Amid Revenue Decline
Paytm, the payment and financial services company, disclosed a 3% decline in revenue for the fourth quarter of FY24, amounting to Rs 2,267 crore. The company attributed this decline to macroeconomic challenges, competitive pressures, and regulatory changes.
Despite the revenue dip, Paytm highlighted significant advancements in enhancing profitability and operational efficiency.
For the full fiscal year FY24, revenue from operations grew by 25% year-over-year (YoY) to Rs 9,978 crore. This growth was driven by increased gross merchandise value (GMV), expanded device additions, and broader financial services offerings.
Paytm reported a 39% YoY increase in Gross Merchandise Value (GMV), reaching Rs 18.3 lakh crore in FY24. The company also noted a rise in merchant subscriptions to 1.07 crore as of March 2024, marking an increase of 39 lakh subscriptions YoY.
Overall losses decreased by Rs 354 crore YoY to Rs 1,423 crore, driven by improved growth and enhanced operational profitability. Paytm’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) before employee stock ownership plans (ESOPs) surged to Rs 559 crore.
Payment services revenue for FY24 stood at Rs 6,235 crore, supported by widespread digital payments adoption and Paytm’s efforts to expand its merchant network.
In Q4FY24, payment services revenue grew by 7% YoY to Rs 1,568 crore, while the marketing services business reported a 14% growth to Rs 1,738 crore.
Paytm disclosed UPI incentives amounting to Rs 288 crore for FY24, compared to Rs 182 crore in FY23. The platform saw a 7% YoY increase in average monthly transacting users (MTU) for Q4 FY24, reaching 9.6 crore.
The company acknowledged disruptions during the quarter, including impacts from regulatory changes affecting products like the Paytm wallet and FASTag, which are expected to have a steady state annualized direct impact on EBITDA of Rs 500 crore in Q1 FY25.
Paytm anticipates most of this impact to manifest in Q1 FY25, given the operational status of these products through most of Q4 FY24.
