However, the loss widened compared to the reported Rs 168 million in the previous quarter.
Operating income for the quarter increased 39% to Rs 234.2 billion compared to Rs 168.0 billion in the same period last year.
First quarter contribution margin increased by around 80% year-on-year to SEK 1,304, with a margin of 56%.
At the operating level, EBITDA before ESOP improved to Rs 840 billion with margin of 4% due to increased contribution margin and operating leverage.
In the June quarter, payments business revenue rose 31% year-on-year to Rs 1.414 billion. Gross Merchandise Volume (GMV) increased by 37% year-on-year to Rs 4.05 billion.
The business’ net settlement margin increased by 69% year-on-year to Rs 64.8 billion, with settlement processing margin at the high end of the 7-9bps range (excluding UPI incentives as no incentives were recorded this quarter). Device subscription payments by merchants reached 7.9 million, an increase of 4.1 million year-on-year and 1.1 million quarter-on-quarter.
Paytm said overhead costs increased as expected in the quarter, up 22% year-over-year, due to higher IPL-related marketing expenses, valuation impacts and expansion of its sales and technical teams.
Average monthly transaction users (MTU) grew 23% year-over-year to 9.2 billion in the first quarter as consumer adoption of mobile payments continued.
The company said it will continue to invest in marketing to grow its user base.
The lending business continues to make significant progress, with Rs 1,484.5 billion of loans provided through the platform in Q1, an increase of 167% year-on-year.
Positive pre-ESOP EBITDA, improved working capital and interest income increased the company’s cash balance to Rs.8.367 billion at the end of June, compared to Rs.8.275 billion at the end of March.
On Friday, the company’s shares closed 1 percent lower at 842.85 rupees on the NSE.
