Paytm swings to black with Q1 net of ₹122.5 crore

Paytm swung to a net profit of ₹122.5 crore for the quarter ended June 30 from a net loss of ₹840 crore logged in the year-earlier period.

Revenue increased 28% to ₹1,917.5 crore. “Contribution profit increased 52% YoY to ₹1,151 crore with the contribution margin improving to 60%, on account of higher share of distribution of financial services revenue, increase in net payment revenue and lower other direct expenses,” the company said in a statement. Other income surged 75.6% to 241 crore in the reporting quarter.

“The net payment revenue rose 38% YoY to ₹529 crore, led by growth in high-quality subscription merchants and an increase in payment processing margins, as the company consolidated its leadership in merchant payments. Financial Services revenue grew 100% YoY to ₹561 crore, driven by continued expansion in merchant loans, trail revenue from Default Loss Guarantee (DLG) portfolio, and improved collection performance,” the company added in its statement.