One 97 Communications (Paytm) reported a consolidated net loss of Rs 778.50 crore in Q3 December 2021, higher than net loss of Rs 535.50 crore in Q3 December 2020.
Consolidated net sales jumped 88.6% to Rs 1,456.10 crore in Q3 December 2021 over Rs 772 crore in Q3 December 2020. The growth was driven by increase in merchant payments processed through MDR bearing instruments (Paytm Wallet, Paytm bank account, other banks netbanking, debit and credit cards), disbursements of loans on platform and recovery of commerce business from COVID-19 impact.
Pre-tax loss stood at Rs 772.90 crore in Q3 FY22 as against pre-tax loss of Rs 525.20 crore in Q3 FY21. Contribution profit (defined as revenue from operations less payment processing charges, promotional cashback and incentives, and other direct costs) grew 560% to Rs 453.7 crore in Q3 FY22 as against Rs 68.7 crore in Q3 FY21. Contribution profit improved to 31.2% of revenue from operations in Q3 FY 2022 from 8.9% in Q3 FY 2021.
EBITDA (before ESOP cost) stood at Rs (392.80) crore in Q3 FY22 as against Rs (487.50) crore in Q3 FY21. EBITDA margin improved to (27%) of revenues in Q3 FY 2022 from (63%) of revenues in Q3 FY2021 and (39%) of revenues in Q2 FY2022.
Average monthly transacting users (MTU), number of unique users with at least one successful payments transaction in a month, has grown by 37% Y-o-Y to 64.4 million in Q3 FY2022 over Q3 FY2021. The processing of merchant payments through all instruments (Paytm Wallet, Paytm Payments bank account, other banks netbanking, credit and debit cards, UPI etc) grew 123% Y-o-Y.
Consolidated total direct expenses grew 43% to Rs 1,002.40 crore in Q3 FY22 as against Rs 703.30 crore in Q3 FY21.
As per the company's press statement, Paytm continued to rapidly expand its customer and merchant base. The number of consumers on the platform is now over 350 million and merchant base has expanded to 24.9 million (from 20 million a year ago). The MTU grew consistently over this fiscal year. The customers showed greater retention and higher engagement (measured by average GMV and transaction per customer).
Gross Merchandise Value (GMV) is the amount processed on our platform when a customer is making a payment to a merchant using any instrument. Paytm's GMV for Q3 FY2022 was at Rs 2.5 lakh crore. Paytm processes payments from all instruments (which include Paytm Payment Instruments, netbanking, credit and debit cards, UPI) and earn MDR on the transactions where payment is made through MDR bearing instruments. The GMV from processing payments through MDR bearing instruments grew 77% Y-o-Y.
Payment Services to Consumers encompasses payments done by consumers on the Paytm app, where it earns MDR and certain fees. Revenue from Payment Services to Consumers grew 60% Y-o-Y and 15% Q-o-Q to Rs 406 crore, driven by growth in transaction volumes of Paytm Payment Instruments and expansion of use-cases on the Paytm app.
Payment Services to Merchants include merchant offerings of QR payments, EDC and Soudbox devices, and Payment Gateway. Paytm earns MDR on the GMV processed for merchant payments (for MDR bearing instruments) and additionally earn subscription fee for devices. Paytm were able to accelerate deployments in our devices business with an increase of 1.4 million devices over the last year to 2 million devices by the end of Q3 FY2022. Revenue from Payment Services to Merchants was up 117% Y-o-Y and 46% Q-o-Q to Rs 586 crore driven by MDR-bearing payment GMV growth, new large partner wins in payment gateway services and growth in number of EDC and soundbox devices. On a Q-o-Q basis, our revenue growth also includes the impact of increase in spending during the festive season.
The ESOP charges stood at Rs 366 crore recorded in Q3 FY2022 pertains to grant of 26.6 million Employee Stock Option (ESOPs) in this quarter. Net Cash, Cash Equivalent and investable balance was at Rs 10,215 crore as of December 2021.
Paytm is one the largest payments platform in India based on the number of consumers, number of merchants, number of transactions and revenue ended March 2021. The company launched Paytm in 2009, as a mobile-first digital payments platform to enable cashless payments for customers giving them the power to make payments from their mobile phones. It started with bill payments and mobile top-ups as the first use cases, and Paytm Wallet as the first Paytm Payment Instrument.
Shares of One 97 Communications (Paytm) rose 1.84% to Rs 970.80 on BSE.
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