n Monday, India’s Paytm made known their sequential third-quarter adjusted loss. The loss can be due to their digital payments business which was
recovered from the winding down of Paytm’s payments bank unit.
Even more so, the company posted an important loss of 2.04 billion rupees which translates into a $23.6 million loss. The loss is also before exceptional items and tax for the third quarter ended on Dec. 31, compared with a 4.07-billion-rupee loss that happened in Q2.
This translates into a smaller loss compared with the 2.2 billion rupees loss that happened in the year-ago quarter. Its first-ever profit was also reported in the previous quarter, the profit being generated by the sale of its ticketing business to Zomato a food delivery app.
The revenue encountered by Paytm from their operations rose from 10.1% sequentially to 18.28 billion rupees. The revenue from the financial services that come from the loan business grew by 34% and the payment services business grew by 8%.
In January 2024 the Reverse Bank of India concluded Paytm’s banking unit mentioning president compliance issues, bringing worries to the digital payment industry. On the other hand, their expenses fell by 31% year-on-year and by 1% sequentially, primarily due to lower marketing and employee-related expenses.
Rahul Jain, the vice president of research from Dolat Capital, said “Paytm's fundamentals are improving and it seems like the regulatory hurdles are largely behind us,”. He also added, “The only pain point for Paytm remains the wallet business, which continues to bear the brunt of the RBI's embargo on Paytm Payments Bank.".
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Paytm also said that earnings previous to interest, taxes, amortization, and depreciation that are before the cost of employee stock options were also negative 410 million rupees compared with negative 1.86 billion rupees from the quarter before, reported Reuters.
The company also mentioned that they had increased a default loss guarantee that reached up to 3.5 billion rupees c compared to the previous one of 2.25 billion rupees to its lending partner SMFG India Credit for loans for merchants.
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