New Delhi: One 97 Communications Ltd (Paytm) on Wednesday announced a financial loss of Rs 550 crore in Q4FY24, a 3.2x increase, as its margins suffered following the RBI's devastating ban on its affiliate firm, Paytm Payments Bank (PPBL), on January 31.
According to the RBI, the decision aimed to address certain irregularities in Paytm Payments Bank's banking services, ensuring compliance with regulatory norms.
The business reported an impairment of Rs 227 crore for carrying the value of its investment in Paytm Payments Bank Ltd, resulting in wider losses for the three months ending March. In the quarter ending March 31, 2024, revenue decreased to Rs 2,399 crore from Rs 2,465 crore the previous year. Losses increased to Rs 551 crore over the time, up from Rs 168 crore the previous year.
Paytm flagged that while the company experienced some financial setbacks in Q4 due to these disruptions, the full impact will be more evident in the first quarter of FY25.
The company highlighted that Paytm Payments Bank’s products, such as the Paytm wallet and FASTag, were distributed by Paytm. Due to the current embargo on these products, the company anticipates an annualised direct impact on Ebitda of approximately Rs 500 crore in a steady state.
For the full financial year 2023-24, the company's consolidated net loss narrowed to Rs 1,422.4 crore, from Rs 1,776.5 crore in FY23. Paytm's revenue from operations witnessed a 24.9 percent growth at Rs 9,977.8 crore year-on-year from Rs 7,990.3 crore.
Meanwhile, the company has warned of job cuts and said it would trim non-core assets after reporting its first sales decline on record.
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