Paytm parent One 97 Communications on Saturday reported a consolidated net loss of ₹481.70 crore in the quarter ended September 30. The consolidated net widened over the net loss of ₹ 435.50 crore recorded in the same quarter last fiscal and the net loss of ₹376.60 crore in the June quarter this fiscal.

Paytm’s bottomline performance was weighed down as expenses rose for the newly listed company that continues to struggle to make money in its payments business segment.

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Consolidated revenue from operations for the quarter under review grew 64 per cent year-on-year to ₹1,086.40 crore as compared to ₹663.90 crore in the corresponding quarter last fiscal. Total direct expenses including promotional cashback and incentives grew 32 per cent to ₹825.7 crore (₹626.3 crore)

This is the first time Paytm is making public it’s quarterly earnings performance since its listing in bourses earlier this month.

Revenue from payments and financial services rose 69 per cent year-on-year to ₹842.60 crore (from ₹497.8 crore) while commerce and cloud services revenue grew 47 per cent to ₹243.80 crore (₹166.1 crore).

Contribution profit surges

Contribution profit grew a whopping 592 per cent to ₹260.7 crore (₹37.7 crore). Among the indirect expenses, marketing saw a jump of 64 per cent to ₹102.3 crore (₹62.3 crore). Also, the first half contribution profit of ₹500 crore has exceeded the contribution profit of ₹360 crore for the entire fiscal year 2020-21, Paytm said in its filing to the stock exchanges on Saturday.

“The growth of non-UPI GMV has driven continued payments revenue growth and our UPI led payment volume growth is translating to a significant ramp up of our financial services offering. We are driving digital payments and financial services penetration and widespread adoption across India. Paytm has seen a strong second quarter of FY22, which is a testimony to the strong two sided ecosystem of consumers and merchants that we have built. We are maintaining the growth momentum in our payment services business, expanding our financial services business aggressively and on our way to pre- Covid volumes for commerce and cloud services,” said a management note on the performance.

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On the lending business front, the number of loans disbursed grew 714 per cent YoY to over 2.8 million in Q2 FY22.

“The lending business continued to show strong growth as a result of the rapid scale-up of all of our lending products, including Postpaid (Buy-Now-Pay-Later), consumer loans and merchant loans. Our financial institution partners disbursed around 1.3 million loans in October 2021, a 472 per cent increase in numbers of loans disbursed YoY and aggregating to a total disbursal of ₹6,270 million implying a 418 per cent increase in value of loans disbursed YoY,” Paytm said.

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