Paytm Reports Rs 1,701-Crore Loss For FY21

Paytm Reports Rs 1,701-Crore Loss For FY21

paytmOne97 Communications Ltd., the parent company of Paytm, reported another loss for FY21 even though the quantum was lower than in the previous year. Revenue and expenses fell during the year. One97 reported a consolidated loss of Rs 1,701 crore in FY21 compared to Rs 2,942 crore in FY20, its annual report sent out to investors showed.

Revenue fell 10% to Rs 3,186 crore in FY21, with revenue from operations dropping 15% to Rs 2,802 crore.

Expenses dropped 22% to Rs 4,782.95 crore.

A drop in marketing and promotional expenses to Rs 532.52 crore from Rs 1,397 crore a year ago helped bring down expenses.

Payment processing charges dropped to Rs 1,916.78 crore compared to Rs 2,265.91 crore a year ago.

On May 27, Bloomberg reported that Paytm is considering an initial public offering. The annual report doesn’t make any reference to these plans. The company has now been in operations for twelve years.

Detailing the finances of some of its associates and joint ventures, the annual report showed:

Paytm Payments Bank had a revenue of Rs 1,987.45 crore in FY21 and a total comprehensive income of Rs 18.79 crore. Last year, the payments bank had reported revenue of Rs 2,110 crore and a total income of Rs 2.62 crore. The group’s share of profits, based on its shareholding, stood at Rs 9.21 crore.

Paytm General Insurance and Paytm Life Insurance have reported no revenues so far.

Paytm First Games Pvt., a joint venture, reported a revenue of Rs 149.33 crore and a loss of Rs 201.93 crore. The group’s share of loss stood at Rs 78.16 crore.

The net worth of Paytm First Games has been fully eroded with net current liabilities, the annual report said. A separate disclosure shows that Paytm Entertainment Ltd. had to provide a short-term loan of Rs 80.92 crore to Paytm First Games “on account of a commercial exigency…” Repayment of this loan is due in June 2021.

The company intends to hold its next annual general meeting on June 30, where it proposes to vote on a sub-division of each of its existing shares worth Rs 10 to ten shares worth Re. 1.

Source: https://www.bloombergquint.com/business/paytm-reports-rs-1701-crore-loss-for-fy21

Nysha Varshney

Naysha Varshney is an editor at Economy News. She covering finance and personal finance-related news.

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