Paytm loss widens to Rs 571 crore; hopes to turn profitable by September 2023

NEW DELHI:  As expected, Paytm continues to report big quarterly losses. One97 Communications, which operates under the Paytm brand, on Monday reported a widening of consolidated loss to Rs 571 crore for the quarter ending September 2022 (Q2FY23) as against a net loss of Rs 473 crore in the same period last year.

On a sequential basis, however, it witnessed a reduction in losses. Paytm posted a loss of Rs 644.4 crore in the quarter ending June. The loss-making firm is confident it will turn profitable by September 2023.  The fintech major reported that its earnings before interest, taxes, depreciation, and amortization (EBITDA) before employee stock ownership plan (ESOP) cost stood at negative Rs 166 crore, improving 61% YoY.

“Since we shared our operating break-even guidance in April 2022, we have been able to drive a Rs 201 crore improvement in EBITDA before ESOP cost, and continue to maintain the guidance of turning profitable by September 2023,” the company said.

The Softbank-backed firm’s consolidated revenue from operations in Q2FY22 jumped 76% to Rs 1,914 crore from Rs 1,086 crore in the same quarter last fiscal. Sequentially, revenue grew by 14%. The company’s share prices closed 0.25% higher on Monday at Rs 652.

All eyes are now on the stock, which often is called one of the biggest wealth guzzlers of recent times, as lock-in periods of at least 10 companies including Nykaa, Policy Bazaar and Paytm are set to expire for pre-IPO investors. Meanwhile, PB Fintech, operator of Policybazaar, reported a narrowing of losses to Rs 187 crore for Q2FY23 as against Rs 204 crore loss in Q2FY22.