Shares of parent of online payment service provider Paytm - One 97 Communications surged as much as 6.3 per cent to hit an intraday high of Rs 833.05 after its revenue in June quarter jumped 89 per cent to Rs 1,680 crore. Its revenue jumped on the back of increase in subscription revenues due to growing number of payment devices, growth in bill payments due to growing monthly transacting users (MTUs), growth in disbursements of loans by our partners through our platform, and increase in commerce revenues, the Delhi-based company said in a regulatory filing.
Despite the jump in revenue its loss widened in June quarter to Rs 645 crore from Rs 382 crore during the same period last year. However, on a sequential basis its loss narrowed from Rs 763 crore in the previous quarter.
The Vijay Shekhar Sharma-led company said that it is on track to achieve profitability by end of September quarter of current financial year.
During the quarter Paytm disbursed loans worth Rs 5,554 crore. Loan distribution business has scaled up significantly over the last 12 months, seeing increased adoption by users. Number of loans at 8.5 million, grew 492 per cent year-on-year (YoY), while value of loans grew 779 per cent YoY to Rs 5,554 crore, the company said.
Payments revenue increased 69 per cent YoY (3 per cent QoQ) due to continued growth in subscription and revenues due to ramp-up of our devices business and growth in bill payment use cases due to higher monthly transacting users (MTUs).
Revenue in the financial services business jumped nearly 4 times annually and accounted for 16 per cent of total revenue driven by sourcing and collection revenues in our loan distribution business, Paytm added.
Its revenue from commerce and cloud business grew 64 per cent YoY, with significant growth in commerce revenues due to higher ticketing sales on account of resurgent demand and seasonal strong quarter (driven by big movie releases) for our entertainment merchants, Paytm said.
As of 10:58 am, Paytm shares traded 5.52 per cent higher at Rs 827, outperforming the Sensex which was up 0.52 per cent. Trading volumes on the stock rose as 3.1 lakh shares changed hands on the BSE compared with an average of 2.5 lakh shares traded daily in past two weeks.