One97 Communications Limited, the parent company of Paytm, shared its earnings report for Q2FY23. The digital payments firm has gained a 76 percent year-on-year (YoY) growth in revenue to Rs 1,914, while EBITDA improved to Rs 259 crore YoY. Also Read - Avatar: The Way of Water to release on December 16: How to book tickets in India
The company also saw a sustained increase in contribution profit of 223 percent YoY and 16 percent QoQ to Rs 843 crore. Some of the factors that helped in boosting Paytm’s contribution margin were an increase in the mix of high-margin businesses like loan distribution. Indirect costs also reached Rs 1,010 crore in the quarter vs the previous quarter’s Rs 1,001 crore. Also Read - Google Pay, PhonePe, Paytm, other UPI payment apps to impose transaction limit: Report
Furthermore, its business revenue grew by 56 percent YoY and 9 percent QoQ in Q2FY23. The financial services firm has claimed that it is achieving robust traction across all of its businesses, continuing the momentum that it witnessed in Q1 of FY23. Also Read - Paytm users can make payments to mobiles registered with third-party UPI apps: How to use it
Revenue from payment services to consumers also surged to Rs 549 crore, which is a 55 percent YoY increase. Payment services to merchants also showed an increase of 56 percent YoY, it reached Rs 634 crore. All this was achieved without any UPI incentive during the quarter.
Moreover, Paytm’s net payment margin stood at Rs 443 crore, a 15 percent Q0Q increase and a 428 percent YoY hike.
Moving to the brand’s lending vertical from the financial services business, it stood at Rs 349, a 293 percent YoY and 29 percent QoQ increase. The company’s financial service revenue now accounts for 18 percent of total revenues as compared to 8 percent in Q2FY22.
In its financial services business, it disbursed 9.2 million loans amounting to Rs 7,313 crore, making 482 percent YoY and a 32 percent QoQ increase. The company also expects “a long growth runway ahead” in its loan distribution businesses with high demand for all its products like Paytm Postpaid, Personal Loans, and Merchant Loans.
As for the Postpaid disbursement, it stood at Rs 4,050 crore, which is 449 percent YoY and 20 percent QoQ growth. It also widened its merchant network to 15 million. Personal Loan and Merchant Loan amounts reached Rs 2,055 crore and Rs 1,208 crore, respectively.
Lastly, the company also reported 55 percent YoY and 15 percent QoQ growth in Commerce and Cloud revenues to Rs 377 crore.