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Paytm FY24 Q4 results – Loss Plummets to Rs.550 Cr

22 May 20244 mins read by Angel One
Paytm's Q4FY24 results show significant financial setbacks due to UPI and PPBL disruptions, with the full impact expected in Q1FY25, requiring strategic adjustments.
Paytm FY24 Q4 results – Loss Plummets to Rs.550 Cr
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Paytm reported its Q4 results today and saw a significant widening of losses in Q4FY24. The company’s net loss surged to Rs.550 Cr compared to Rs.219.8 Cr in the same period last year. This substantial increase in losses was attributed to temporary disruptions related to the Unified Payments Interface (UPI) transition and a more permanent disruption due to restrictions on Paytm Payments Bank (PPBL).

Revenue and EBITDA Impact

Paytm’s consolidated revenue from operations saw a 2.9% decline year-on-year (Y-o-Y), falling to Rs.2,267.1 Cr from Rs.2,334.5 Cr. Sequentially, the revenue dropped 20.5% from Rs 2,850.5 crore. EBITDA before employee stock ownership plans (ESOPs) plummeted to Rs.103 Cr in the March quarter, compared to Rs.234 Cr in the same quarter the previous year.

Parameters  Q4 FY24 Q4 FY23 Change
Revenue from Operations (in crore) Rs 2,267.1 Rs 2,334.5 -2.9%
Net Loss (in crore) Rs 550 Rs 219.8 150%
EBITDA before ESOPs (in crore) Rs 103 Rs 234 -56%
Annual Revenue (FY24, in crore) Rs 9,977.8 Rs 7,990.3 +24.9%
Annual Net Loss (FY24, in crore) Rs 1,422.4 Rs 1,776.5 -19.9%

Payments Business Performance

Despite these challenges, Paytm’s payments business revenue grew by 7% Y-o-Y to Rs.1,568 Cr in Q4. However, there was a 9% decline on a q-o-q basis. The company attributed this drop to disruptions in PPBL products.

Future Impact and Outlook

Paytm highlighted that the restrictions on PPBL products, such as the Paytm wallet and FASTag, distributed by Paytm, are expected to have an annualized direct impact on EBITDA of approximately Rs 500 crore. While the financial setbacks in Q4 were significant, the company anticipates the full impact to be more evident in the first quarter of FY25.

Conclusion: In conclusion, Paytm’s Q4FY24 results reveal significant financial setbacks due to UPI and PPBL disruptions. Despite challenges, the company anticipates a clearer impact in Q1FY25, emphasizing the need for strategic adjustments to handle ongoing issues and enhance future performance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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