The payment firm’s loan distribution continues to grow at a rapid pace, helping the company narrow its losses. The company also saw the merchant subscription of its devices grow to 79 lakh in the Q1FY24 from 68 lakh in the Q4FY23.
Payments firm Paytm reported a 39.4 percent growth in revenue at Rs 2,341 crore for the June quarter (Q1), even as the company narrowed its losses by 45 percent to Rs 358 crore in Q1 from Rs 645 crore it had reported during the same period of last financial year.
Paytm’s overall metrics seem to be improving better than expected with the net payment margin going up, owing to the increase in merchant subscription revenues. Its payment processing margin also improved due to non-UPI transactions such as card and EMI instruments growing relatively faster for the company.
The Noida-based company’s ESOP expenses for the quarter stood at Rs 377 crore, higher than its losses indicating that the company is approaching net income level by middle of next financial year as predicted by analysts.
Paytm has also granted 17 lakh shares to its employees with the exercise price option of Rs 9 during June quarter. The cost could come to around Rs 142.5 crore as of the share price of the company on July 21. The company also cancelled 53,250 stock options this quarter, which was granted earlier and the savings on this could come to about Rs 4.5 crore.