Paytm Research Tear Sheet Q4 FY 2022

The word Paytm means pay through mobile. It is an Indian multinational company which is specializes in digital payment systems, e-commerce and finance. The company is headquartered in Noida, Uttar Pradesh. It was incorporated in August 2010. The founder is Vijay Shekhar Sharma. The services include payment system, mobile payments and online shopping. The stocks of Paytm are traded on the NSE & BSE. The company provides payment services, commerce and cloud services, and financial services. It has 33 crores registered customers and almost 2 crores registered merchants.

In the online payment industry, Paytm has come out with flying colors. To survive in this industry the company has made itself available in 11 languages. It has made itself available in wide array which includes movies, utility bill payments, travel booking, mobile recharges.  Paytm QR code is used in store payments such as restaurants, parking, tolls and grocery stores. Even educational institutions and pharmacies are taking payment through Paytm QR codes. The vision of the company is to“enhance digital excellence, increase earnings growth, and cross-selling opportunities”.

Key Financial Highlights

Particulars (in ₹ Cr)	Q4 2022	Q4 2021
Revenue from Operations	1,540.90	815.3
Total Direct Expenses	1,001.70	641.2
Contribution Profit	539.2	174.1

Standalone Highlights

Revenue increased by 89% to Rs 1541 crore.

Contribution to profit improved by 35.0% of revenue in Q4 FY 2022.          

EBITDA improved by 12%.

Payment services revenue improved by 80% year-on-year.

Financial services revenue grew 340% year-on-year to Rs. 168 crores.

Consolidated Highlights

Consolidated Revenue from Operations improved by 77% to ₹4,974 Cr.

GMV has doubled to ₹8.5 Lakh Cr in FY 2022.

Revenue from Payment Services to Consumers improved  by 58% to ₹1,529 Cr.

Financial Services & Others revenue up by 240% Y-o-Y to ₹437 Cr.

Management Talk

“We expect to, as a percentage of revenue, and as a percentage of GMV for this to continue to improve. For the same three factors that I mentioned, those trends are ongoing trends, transaction routing continues to keep getting better. Our transaction rates continue to get better and the transaction mix continues to improve in our favor. We believe that all three trends should continue to contribute and our payments revenue should grow faster than our payment processing charges.”

Madhur Deora, (President and Group CFO)

Management Updates

Paytm has deployed2.1 million devices in the last 12 months.

Post paid loan disbursed by paytm improved by  373% Y-o-Y in Q4 FY 2022.

Average MTU increased by 35% Y-o-Y to 60.8 million.