BENGALURU :Indian digital payments firm Paytm posted an operating profit for the fifth consecutive quarter on Friday on account of festive season-led sales.
Operating profit, which the company defines as core profit before cost of employee stock-options, was at 2.19 billion rupees for the quarter ended Dec. 31 compared with 310 million rupees a year ago, when it first posted an operating profit.
India’s festive season was delayed to late October last year, resulting in consumers spending more during the quarter. An increasing number of Indians are turning to digital payment platforms such as Paytm and peers Google Pay and Phone Pe to make their purchases.
Paytm, one of India’s first startups to go public, said its consolidated revenue rose 38 per cent to 28.51 billion rupees, with the payments business contributing 61 per cent to the total.
The company – which is also a non-bank lender – said revenue from its financial services business, including the loan segment, rose 36 per cent for the quarter. It makes up 21 per cent of the total revenue.
In early December, it said it would issue fewer sub-50,000 rupee loans in light of the central bank tightening rules on consumer spending after a surge in small-ticket loans.
Its value of buy now, pay later (BNPL) loans, or postpaid loans distributed during the quarter, grew 44 per cent from a year earlier but was down 17 per cent sequentially as the company slowed down its postpaid loan distribution, which included the sub-50,000 rupee loans.
Under the personal loan segment, Paytm said its average loan ticket size increased to 168,000 rupees from 120,000 rupees a year ago as it looks to expand to high-ticket loans.
Paytm shares closed 2.6 per cent higher ahead of its results.
($1 = 83.0341 Indian rupees)
