Indian fintech firm Paytm beats quarterly profit view on core business growth
A QR code sticker of the digital payment app Paytm is seen outside a grocery store in Kolkata, India July 9, 2024. REUTERS/Sahiba ChawdharyÂ
Jan 29 : Indian fintech firm Paytm beat profit expectations in the third quarter on Thursday, helped by robust growth in its financial and payments services segments.
Paytm has focused on its core payments services business and reduced expenses following earlier challenges after the central bank ordered the shutdown of its banking unit in January 2024.
The digital payments firm posted a net profit of 2.25 billion rupees for the quarter ended December 31, from a loss of 2.08 billion rupees a year earlier.
Analysts on average had expected a profit of 1.91 billion rupees, per data compiled by LSEG. They anticipated the festive season, which typically boosts credit activity, would contribute to tailwinds, alongside Paytm's focus on core businesses.
Paytm on Thursday also said it is extending the role of its current MD and CEO, Vijay Shekhar Sharma, naming him the MD and CEO of its payments services unit, to ensure "continuity of leadership".
Revenue from its payments business, which accounts for roughly 55 per cent of total revenue, rose 19 per cent in the December quarter.
The number of Paytm's monthly transacting users also rose by 6 million year-on-year to 76 million as of December-end, aided by new sign-ups.
Meanwhile, revenue from the distribution of financial services increased 34 per cent, driving overall revenue 20 per cent higher year-on-year to 21.94 billion rupees for the quarter ended December 31.
Paytm has been expanding into international markets and broadening its services to include lending and wealth management, including broking.
The company's expenses fell 2 per cent on a year-on-year basis.
In August, Paytm's payments services unit received approval to operate as an online payment aggregator, allowing it to resume onboarding new merchants.
The unit also received the nod to operate as a payment aggregator for physical payments and cross-border transactions in December.
