NEW DELHI: Impacted by the disruption caused by Paytm Payments Bank Ltd (PPBL) on account of RBI restriction, One97 Communications, the parent firm of fintech major Paytm, reported a net loss of Rs 550 crore for the quarter ending March of the financial year 2023-24 (Q4FY24) compared to Rs 167.5 crore loss reported in the year-ago quarter. The Vijay Shekhar Sharma-led company’s revenue from operations registered a marginal decline of 2.9% YoY to Rs 2,267.10 crore, compared to Rs 2,334 crore in the same period last year.
“Our Q4FY24 results were impacted by temporary disruption on account of UPI transition etc. and permanent disruption because of PPBL embargo,” Paytm said in its earnings call. It flagged that while it experienced some financial setbacks in Q4 due to these disruptions, the full impact will be more evident in the first quarter of FY25.
March quarter was the first quarterly result of Paytm after the RBI barred PPBL from onboarding new users and from offering various services owing to non-compliance. Paytm said its management has determined that the value of the company’s investment in PPBL is impaired and, accordingly, has recorded an impairment provision of Rs 209 crore. For the full FY24, consolidated net loss came at Rs 1,422.4 crore as against Rs 1,776.5 crore loss in FY23. Revenue from operations grew 25% YoY to Rs 9,977.8 crore in FY24. Paytm expects Q1FY25 revenue of Rs 1500 - Rs 1600 crore and EBITDA before ESOP of (Rs 500) - (Rs 600) crore.