Key Takeaways from our Earnings Call for Q2FY24 

byPreeti VermaLast Updated: October 21, 2023

Our Q2FY24 quarter earnings have continued to be strong with robust revenue growth led by higher subscription revenue, payments business revenue, and growth in the loan distribution business. The strong growth momentum continues even as the festive sales got pushed to Q3 FY24. In Q2FY24, we registered revenue growth of 32% year-on-year (YoY) to ₹2,519 Cr, which is an important milestone for us considering there was no UPI incentive this quarter. EBITDA before ESOP went up ₹319 Cr YoY to ₹153 Cr. 

Addressing the analysts at the Earnings call about our growth and achievements in the last quarter, our Founder, CEO & MD Vijay Shekhar Sharma said, “I am very happy to see the ongoing innovation, every nook and corner of India has digital payments enabled. Our business has seen great momentum and we are focussed on revenue-led growth.”

Here is our Earnings Presentation for the quarter ending September 2023 and you can also read the full Q2FY24 financial results report here

Sharing an overview on the steady growth of revenue, President and Group CFO, Madhur Deora said, “Our revenue of ₹2,519 Cr is an important milestone for the company, we have seen improved EBITDA, 6% of revenue without UPI incentives. We continue to invest in marketing, sales, and other areas. We will pay off in growth and EBITDA over time, I am extremely positive.”

We offer a range of payment services products to merchants from a simple QR code to a variety of Soundbox devices, a comprehensive range of card machines, and a payment gateway. With this, the merchants paying subscription for Paytm’s payment devices has reached 92 Lakh as of September 2023, increasing 44 Lakh YoY and 14 Lakh quarter-on-quarter. 

Adding to it, in Q2FY24, we disbursed loan value worth ₹16,211 Crore, which grew 122% YoY, through its three product offerings – Paytm Postpaid, Personal Loans, and Merchant Loans. Highlighting decent growth in the lending business, President and COO Bhavesh Gupta said, “Loan distribution business has been seeing decent momentum. QoQ has shown decent growth. We also continue to see better portfolio performance.”

“We will continue to add new lending partners. This quarter we added Tata Capital, last time it was Shriram Finance. We have 9 lending partners now,” says Bhavesh.

On the Commerce and Cloud segment, Madhur shares, “Our commerce and cloud business continues to do well. So far there are 8.7 Lakh active credit cards from 3 Lakh last year. We added 6 Lakh cards in the last year. We are continuing to see good traction with both HDFC and SBI Cards.”

Consumer engagement on our Paytm app continues to remain strong with our mobile app continuing to be a preferred choice for customers. Hence we believe India has the potential of 10 Crore merchants, from small to large enterprises who require secure and convenient payment services.  

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