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Indian digital payment chopine Paytm warned of problem cuts on Wednesday after reporting that its net loss extend in the 4th quarter as itgrapples with a recent regulative clampdown .
One97 Communications , Paytm ’s parent , read it expects to cut employee expenses and pare down its annual stave costs by $ 48 million to $ 60 million .
The company , once the most worthful Native American inauguration , reported a nett loss of $ 66.1 million in the quaternary quarter ended March 2024 , compared to a exit of $ 20.11 million a twelvemonth earlier . tax revenue declined about 3 % to $ 272.4 million from $ 280.4 million in the same point .
India ’s central bank in February banned the company ’s banking partner and sister company , Paytm Payments Bank , from carry banking activityfrom March . That brought a sudden halt to Paytm ’s slew of banking armed service , and the caller was forced to ink new partnerships with other banks to keep many of those service run .
Paytm articulate it also took an impairment charge of $ 27.2 million concern to its investing in Paytm Payments Bank in the quarter . In the quarter ending June this yr , Paytm visualise its revenue to be in the range of $ 180 million to $ 192 million .
In the full year end March , Paytm ’s revenue increased 25 % to $ 1.19 billion from a class earlier , though high defrayal processing charges , marketing price , employee benefit charges and computer software swarm disbursal weighed on its bottom crinkle . As a result , net loss widen to $ 170 million from a red of $ 213 million a twelvemonth earlier .
Paytm ’s results admit “ enough data peak to suggest that the patronage is past the bottom in terms of defrayal volume and exploiter / merchant traction , ” Bernstein analysts said in a note to clients . “ Though from a fiscal metrics perspective , 1QFY25 is likely to be the bottom , as it would reflect the full impact of the lower regular state ( vs. 2 months impact in 4QFY24 ) . ”
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The analyst , however , cautioned that Paytm ’s payment GMV has dropped by about 20 % and the caller ’s expectations for its defrayment processing margin has also declined , which together “ translate to a skinny 50 % blow to the payment margins . ” They estimated , however , that Paytm ’s merchandiser loaning volumes pick up in March and April — a clear signal of revival .
Paytm had about $ 1.03 billion in the bank as of March 31 . The troupe ’s shares were down about 1 % on Wednesday good afternoon to ₹ 349.20 , giving it a grocery detonator of $ 2.64 billion . Paytm went public in 2021 at a evaluation of $ 20 billion .
“ I am happy to share that we have successfully transitioned our core defrayal business organization from PPBL to other partner bank . This move de - risk our business enterprise model and also opens up new opportunities for long - term monetization , turn over our platform ’s military capability around client and merchant mesh , ” said Paytm ’s father and chief operating officer , Vijay Shekhar Sharma , in the company ’s yearly shareholder letter .
“ It has been possible in such a short geological period of time with extensive funding from the Regulator , NPCI , Bank mate and our committed team mates . The unwavering commitment of our government and regulator to back innovation and financial inclusion , keeps us true to our mission and committed to our long - condition sustainable growth opportunity , ” he add together .
