Paytm Q1 Results: Profit soars 79% YoY to Rs 220 crore; board decides not to go with bonus proposal

Synopsis

Paytm's net profit surged seventy-nine percent year-on-year to two hundred twenty crore rupees. The company's board decided against a bonus issue at this time. They will continue focusing on compounding growth and profitability for shareholders. This decision aims to enhance long-term shareholder value creation. The company emphasized its commitment to sustained financial performance.

Fintech operator Paytm Ltd reported 79% year-on-year (YoY) growth in its consolidated net profit at Rs 220 crore in the first quarter, compared with Rs 123 crore in the year-ago quarter. The Board decided not to proceed with bonus issue at this time, as the company emphasises continued focus on compounding growth and profitability for shareholder value creation.

"After evaluating the proposal from the perspective of long-term shareholder value and due deliberation, the Board was of the view that the company should continue to focus on further compounding growth and profitability for shareholder value creation. Accordingly, the Board decided not to proceed with the said proposal at this time," the company said.

Instead, the board approved additional investment of Rs 100 crore by way of subscription to the equity shares of its wholly owned subsidiary Paytm Money.

Revenue from operations increased 28% YoY to Rs 2,448 crore from Rs 1,918 crore. Sequentially, revenue rose 8% from Rs 2,264 crore in the March quarter. Total income for the quarter stood at Rs 2,630 crore, up 22% from Rs 2,159 crore a year earlier. In the previous quarter, total income was Rs 2,442 crore.

The company's profit before tax stood at Rs 247 crore, compared with Rs 143 crore in the year-ago quarter and Rs 173 crore in the March quarter. This shows that operating performance improved both year-on-year and quarter-on-quarter.

Paytm's total expenses rose to Rs 2,383 crore from Rs 2,016 crore a year earlier. Sequentially, expenses increased from Rs 2,269 crore.

Payment processing charges remained the largest cost item at Rs 794 crore, up from Rs 581 crore in the same quarter last year and Rs 692 crore in the March quarter. The increase was in line with higher payment activity and business scale.

Employee benefits expense stood at Rs 742 crore, compared with Rs 642 crore a year earlier and Rs 739 crore in the previous quarter. Marketing and promotional expenses were Rs 169 crore, against Rs 100 crore in the year-ago quarter and flat compared with the March quarter.

Software, cloud and data centre expenses declined year-on-year to Rs 159 crore from Rs 168 crore, and also fell from Rs 175 crore in the March quarter. Depreciation and amortisation expense stood at Rs 131 crore, lower than Rs 166 crore a year earlier and broadly similar to Rs 132 crore in the previous quarter.

Other expenses were Rs 381 crore, compared with Rs 355 crore a year earlier and Rs 357 crore in the March quarter.

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