NEW DELHI: One 97 Communications which owns finetch major Paytm reported a 44.5% year-on-year decline in consolidated net losses in the June quarter to Rs 358.4 crore. Net losses stood at Rs 645.4 crore in the year ago quarter. Revenue from operations during the quarter increased to Rs 2,341.6 crore from Rs 1,679.6 crore posted in the year-ago quarter, recording a y-o-y rise of nearly 40%.

Sequentially, though, losses have increased. In the March quarter, Paytm had reported losses of Rs 167.5 crore.
“Driven by an increase in merchant subscription revenue, jump in GMV (gross merchandise value), and growth in loan disbursements, the company’s strong growth momentum continues, Paytm said in a statement. The fintech major said that it expects a continued topline growth and operating leverage to drive profitability in the coming quarters. “The company’s indirect costs (excluding ESOP cost) have increased along expected lines (up 22% year-on-year) due to seasonal increase in marketing costs and impact of appraisals. Indirect expenses (as a % of revenues), has declined to 52%, from 60% in Q1FY23,” the company said.

As adoption of digital payments for consumers and merchants in India continues, user engagement on the platform continues to grow with average monthly transacting users (MTU) of 9.2 crore, a jump of 23% year-on-year.
Shares of One 97 Communications ended at Rs 843.55 apiece on the BSE on Friday, down 0.89%.