Paytm Q1FY24 Results: EBITDA before ESOP grows to ₹84 Cr
Paytm, India's leading payments and financial services company and the pioneer of QR and mobile payments, has announced Q1FY24 results where it has reported a massive improvement in EBITDA before ESOP cost of ₹84 Cr as compared to ( ₹275 Cr) in Q1 FY 2023. The company's revenue from operations has seen a growth of 39% YoY to ₹2,342 Cr.
The company's EBITDA before ESOP margin stood at 4% on the account of continuous surge in profitability due to robust revenue growth, increasing contribution margin and operating leverage. This does not include any UPI incentives, since it recorded UPI incentives after government issued the gazette notification, which is generally in the second half (H2) of the financial year. It managed to increase EBITDA while continue investment in growth.
It has seasonality in indirect costs as marketing expenses increase in Q1 due to IPL and employee costs increase due to appraisals. In the coming quarters, Paytm expects its continued topline growth and operating leverage to drive increase in profitability. In the last quarter of FY 2023, it reported EBITDA before ESOP of ₹234 Cr included ₹182 Cr UPI incentive for FY 2023. The company's EBITDA before ESOP stands at ₹84 Cr as compared to ₹52 Cr in Q4 FY 2023 (excluding the UPI incentive).
The company's strong growth momentum continues, which is backed by an increase in merchant subscription revenue, surge in merchant payments volume (GMV), and growth in loan disbursements. Paytm's payments revenue increased 31% YoY to ₹1,414 Cr while the payments profitability improved with net payment margin expanding 69% YoY to ₹648 Cr.
Due to increasing share of non-UPI instruments at point-of-sale and focus on EMI processing through other banks' credit and debit cards,
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