One97 Communications (PAYTM) Q4 21/22 earnings summary

Executive summary

• FY22 revenue from operations rose 77% to ₹4,974 crore as payments, lending and payment devices scaled; EBITDA-before-ESOP loss narrowed to ₹1,518 crore from ₹1,655 crore.

• Management targeted operating profitability, measured as EBITDA before ESOP cost, by the quarter ending September 2023.

Financial highlights

• Consolidated revenue was ₹49,742 million, up from ₹28,024 million; consolidated net loss widened to ₹23,964 million from ₹17,010 million, with basic and diluted EPS of -₹38 vs -₹28.

• Contribution profit reached ₹1,498 crore vs ₹363 crore; contribution margin was 30.1% vs 12.9%. EBITDA-before-ESOP loss improved to ₹1,518 crore from ₹1,655 crore.

• Consolidated other income was ₹2,901 million vs ₹3,844 million; exceptional items were a ₹24 million loss vs a ₹281 million loss in FY21.

Outlook and guidance

• Management cited strong momentum, higher payment monetization and reduced EBITDA-before-ESOP losses, and remained on track for operating profitability by the quarter ending September 2023.

• India digital payments TAM was forecast to grow at 23% CAGR from FY22E to FY30E, reaching US$2.3 trillion; BNPL was forecast to reach US$35 billion by FY26E.