Paytm Q1 Results: Profit up 79% YoY to Rs. 220 crores; The board decides not to go with the bonus proposal

Fintech operator Paytm Ltd reported a 79% year-on-year (YoY) growth in its consolidated net profit in the first quarter from Rs. 123 crores. The Board decided not to proceed with the bonus issue at this time, as the company continues to focus on compound growth and profitability for shareholder value creation.

“After evaluating the proposal from the perspective of long-term shareholder value and after due deliberation, the board is of the view that the company should continue to focus on profitability for further compounding growth and creation of shareholder value. Accordingly, the board has not decided to proceed with the proposal at this time,” the company said.

Instead, the board through subscription to equity shares of its wholly-owned subsidiary Paytm Money for Rs. An additional investment of Rs 100 crore was approved.

Income from operations Rs. 1,918 crore, up 28% YoY to Rs. 2,448 crores. Respectively, the revenue in the March quarter was Rs. 2,264 crore has increased by 8%. Total revenue for the quarter was Rs. 2,630 crore, which was Rs. 2,159 crore is 22% higher. The total revenue in the previous quarter was Rs. 2,442 crores.

The profit before tax of the company is Rs. 247 crore, as compared to Rs. 143 crore and in March quarter Rs. 173 crores. This shows that operating performance has improved both year-on-year and quarter-on-quarter.

Paytm’s total spend a year ago was Rs. 2,016 crore to Rs. 2,383 crores. Respectively, the cost is Rs. 2,269 crores to Rs.

Payment processing charges remained the highest cost item at Rs. 794 crore, compared to Rs. 581 crore and in March quarter Rs. 692 crores. The increase was in line with higher payment activity and business scale.

Employee Benefit Expense Rs. 742 crore, which was Rs. 642 crore and in the previous quarter was Rs. 739 crores. Marketing and Promotional Expenditure Rs. 169 crore, which was Rs. 100 crore and was flat compared to the March quarter.

Software, cloud and data center costs on an annual basis of Rs. 168 crores down to Rs. 159 crores and in March quarter Rs. 175 crores down to Rs. Depreciation and amortization expense Rs. 131 crore, which was Rs. 166 crore was less than Rs. It was about 132 crores.

Other expenses Rs. 381 crore, which was Rs. 355 crore and in the March quarter was Rs. 357 crores.