Paytm Q4 results: Net loss widens to Rs 550 crore following banking unit wind down

The revenue from operations of Paytm declined 2.8 per cent year-on-year (YoY) to Rs 2,267.1 from Rs 2,464.6 crore in the corresponding quarter of the financial year 2023.

In May, the company said that the June quarter would see the full effect of the RBI's clampdown. (Express File)

Fintech firm One97 Communications Ltd that owns Paytm widened its loss to Rs 550 crore in the fourth quarter of FY22, according to the company’s regulatory filing. The company has reported a consolidated loss of Rs 167.5 crore during the year-ago period.

The revenue from operations of Paytm declined 2.8 per cent year-on-year (YoY) to Rs 2,267.1 from Rs 2,464.6 crore in the corresponding quarter of the financial year 2023.

However, the company’s loss narrowed to Rs 1,422.4 crore for the fiscal year 2024 against a loss of Rs 1,776.5 crore in FY23. For FY24, the annual revenue of Paytm increased by about 25 per cent to Rs 9,978 crore from Rs 7,990.3 crore in FY23.

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The company has estimated a loss of 300-500 crore due to the Reserve Bank of India (RBI)’s action against its banking unit Paytm Payments Bank Limited (PPBL).

The RBI had barred PPBL from accepting deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags from March 15 onwards. Revenue from the payments business having roughly 69 per cent, rose 7 per cent YoY, but was down 9 per cent sequentially. As per the company, following the RBI’s strictures, a number of lending partners halted loans given out via the platform, thus impacting its ability to earn fee income.

“Our Q4 FY 2024 results were impacted by temporary disruption on account of UPI (Unified Payments Interface) transition etc and permanent disruption because of PPBL embargo,” Paytm said.