Paytm’s financial statement for the first quarter of the ongoing financial year indicates its operational revenue to have dropped by 33.8% to Rs 1,501.6 from Rs 2,267.1 crore in Q4 FY24, as per the fintech’s unaudited quarterly report filed with the National Stock Exchange (NSE).
Against the first quarter of the previous fiscal year, the revenue from operations came down by 35.87% from Rs 2,341.6 crore. The total revenue for Q1 FY25 was Rs 1,639.1 crore with the inclusion of Rs 137.5 crore earned from interest and gains from financial assets.
Payment processing expenses indicated a QoQ drop of 27.66% from Rs 714.8 crore to Rs 517.1 crore. Marketing and promotions costs spiked by 72% from around Rs 129 crore to Rs 221.4 crore in the same period, while IT infrastructure (software, cloud, and data center) costs went up by 12.38% from Rs 162.4 crore to Rs 182.4 crore.
The expenses on employee benefits for Q1 FY25 came down by 13.75% from Rs 1,104.4 crore in the preceding quarter to Rs 952.5 crore. The cost also includes expenses on share-based payments worth Rs 246.8 crore, together accounting for 38.5% of the total expenditure. As a result of this cost cut, the total expenses came down by 8% from Rs 2,691.4 crore in Q4 FY24 to Rs 2,476.4 crore in Q1 FY25.
The company’s losses jumped over 52.6% from Rs 550.5 crore to Rs 840 crore on a QoQ basis. Additionally, its losses spiked by 134.4% from Rs 358.4 crore in Q1 FY24.
Paytm had to spend Rs 1.65 to earn a rupee of operating income in the first quarter of the current fiscal year.
Paytm’s merchant base has been on the rise crossing the 1 crore mark while its customer base stands at 7.8 crore with the average transaction value showing growth along with the total daily transactions also nearing pre-pandemic levels. The fintech platform has managed to achieve these standards in spite of the revenue drop and regulatory measures.
