The Paytm logo.
Credit: Reuters File Photo.
Bengaluru: Paytm's parent firm One 97 Communications on Tuesday reported a net loss of Rs 544.6 crore for January-March 2024-25 (Q4FY25), wider sequentially by 162 per cent from the December quarter’s consolidated loss of Rs 208.5.
This came on the back of exceptional costs the firm disclosed that amounted to Rs 522 crore, largely made up by a one-time acceleration of employee stock ownership plan (ESOP) expense of Rs 492 crore in the quarter.
On a year-on-year (YoY) basis, net loss was down by 1per cent. The firm’s operating revenue came to Rs 1,911 crore for Q4, down 16 per cent YoY from Rs 2,267 crore.
The fintech company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) before ESOP, came to Rs 81 crore, down 21 per cent YoY. Profit after tax (PAT) was “close to breakeven”, coming to a negative of Rs 23 crore, as per the filing.
Growth was attributed to “efficient cost management”, financial services revenue (which rose 9 per cent), and a reduction in payment processing charges. Next quarter onwards, if everything continues going as is currently, the firm may be PAT positive, said the management in a post-earnings conference.
Analysts at Motilal Oswal had expected the company to achieve EBITDA breakeven by the end of Q4 FY25. Emkay Global had projected a positive number.
The firm said it "leveraged AI to reduce non-sales employee cost". The management emphasised the firm’s use of AI, saying that more automation is coming in and the company is not presently recruiting.
ESOP expenses are expected to lower in future quarters to between Rs 75-100 crore as against Rs 169 crore in Q4.
In terms of international growth, executives stressed on expansion through partnerships with local players. With regard to their payment aggregator license to the Reserve Bank of India (RBI), they have been working on the next steps as suggested by the RBI.