One 97 Communications Ltd, the parent entity that owns Paytm, said losses reduced by 15% sequentially, compared to Rs 762.5 crore in the quarter ended March 31, 2022.
Total income grew 88% year on year to Rs 1,781.6 crore for the April-June quarter. It was Rs 948 crore in the same period last year.
However, on a sequential basis, revenue grew by 8% compared to Rs 1,648.4 crore in the fourth quarter of the previous fiscal year.
Revenue from operations increased to Rs 1,679.6 crore in the quarter ended June 30.
Payment processing charges and employee benefit expenses remained the biggest line items in terms of costs for the company.
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Total expenses sequentially grew to Rs 2,416.2 crore for the first quarter.
One97 Communications’ shares closed 3.2% lower at Rs 783.65 apiece on the BSE Friday.
One97 said its payments revenue increased 69% on a yearly basis and 3% quarter on quarter. It attributed this to continued growth in subscription revenue due to a ramp-up of its devices business as well as growth in bill payment use cases.
Its average monthly transacting users stood at 74.8 million for the June quarter, while its merchant base increased to 28.3 million through innovative product offerings such as Soundboxes.
Paytm is facing tough competition from rival PhonePe which is piloting a similar offering to Paytm’s Soundbox.
Total loans disbursed, in partnership with its lending partners, were 8.5 million in the June-quarter, amounting to Rs 5,554 crore.
In a letter to shareholders last month, Paytm founder and chief executive Vijay Shekhar Sharma said the company would sharpen its focus on payments and distribution of lending products, as the company targets to turn in an operating profit by September next year.
For the fiscal year ended March 31, One97 reported a consolidated loss of Rs 2,396.4 crore, compared with a Rs 1,701 crore loss the year before.