Paytm announces operating profitability and development of free cash flow is the next step

By siliconindia  |  Saturday, 04 February 2023, 08:33:08 AM IST

Paytm announces operating profitability and development of free cash flow is the next step
The biggest provider of payments and financial services, Paytm, announced that it had surpassed its September 2023 projection and had achieved operating profitability with EBITDA before ESOP costs of Rs 31 crore. Paytm's operational revenue climbed by 42% YoY and 8% QoQ to Rs 2,062 crore.
As stated by the corporation, the rise was fueled by rising consumer usage, subscription services offered by merchant partners, and ongoing expansion in the loan distribution and commerce sectors. Vijay Shekhar Sharma, the founder and CEO of Paytm, informed shareholders of the success in a letter.
"Our team's persistently laser-focused execution has made this feasible. The group was instructed to concentrate on revenue growth that produces high-caliber profits. Without losing sight of development potential and while strictly monitoring all compliance requirements and risk concerns, we have reached this milestone "added he.
Contribution profit for the quarter was Rs 1,048 crore, with margins increasing steadily from 31% in December 2021 to 51% in December 2022 due to the growing mix of high margin activities, such as loan distribution, and better profitability of the payments sector. Due to increased profitability in the payments industry, net payment margin increased to Rs 459 crore.
Due to a consistent increase in contribution profit and good operating leverage, Paytm's EBITDA before ESOP margin increased from 1% of revenues to 2% of revenues over the previous year. The company claimed that robust revenue momentum persisted across all of its businesses.

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