Paytm gets Q2 results boost from strong loan growth
Indian digital payments firm Paytm posted an operating profit for the fourth straight quarter on Friday, helped by steady loan growth at its financial services unit.
Paytm, one of the country’s first startups to go public, said revenue increased 32% to 25.19 billion rupees ($300.96 million) in the second quarter, from 19.14 billion rupees a year earlier.
Operating profit — which Paytm defines as core profit before cost of employee stock-owing plans — came in at 1.53 billion rupees for the quarter ended Sept. 30, compared with a loss of 1.66 billion rupees a year earlier. Core profit in the first quarter was 840 million rupees.
The company, which has not posted a net profit since it went public in November 2021, said its consolidated net loss narrowed to 2.91 billion rupees, from 5.71 billion rupees a year ago. Paytm, which also rents out devices that verbally confirm online payments to merchants, said revenue at its core payments business rose 28%. Financial services revenue, which includes its loans business, rose 64%. Loans distributed more than doubled in value to 162.11 billion rupees. Paytm’s shares closed 2% higher ahead of results on Friday. They have gained 86% so far this year, while the broader Nifty Financial Services firms has risen 3.3%.
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