One97 Communications, which owns the Paytm brand, on Monday reported a consolidated net loss of ₹ 571.5 crore for the quarter ended September 2022.
The latest quarterly loss was wider than consolidated net loss of ₹ 473.5 crore recorded in same period last year. However, on a sequential basis, the latest September 2022 quarter net loss narrowed from net loss of ₹645.4 crore recorded in Q1 FY23.
For the quarter under review, consolidated revenue from operations stood at ₹ 1,914 crore, up 76.2 percent over ₹ 1086.4 crore in corresponding period last fiscal. On a sequential basis, top-line was up 14 percent.
The company’s contribution profit for Q2 FY23 stood at ₹843 crore, marking an increase of 224 per cent year-on-year and 16% quarter-on-quarter, resulting in expansion of contribution margins to 44 per cent, compared to 24 per cent in Q2 FY22.
“Our Q2 FY23 results show momentum across our operating and financial metrics. We are pleased to show strong growth in revenues and contribution profit, combined with operating leverage, which has allowed us to show sharp improvement in EBITDA before ESOP costs,” Paytm said in a late evening stock exchange filing on Monday.
On track to achieve profitability
Paytm reiterated that it is on track to achieve EBITDA before ESOP cost profitability by quarter ending September 2023.
The company said significant improvement in operating leverage is visible in reduction of indirect expenses as a percentage of revenue to 53 per cent in the quarter, from 60 per cent in Q1 FY23 and 63 per cent in Q2 FY22. The company remains confident that traction in operating leverage will sustain hereon, resulting in better cost efficiency, it added.