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Informist, Monday, Jan. 20, 2025

 

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--One 97 Comm: Oct-Dec merchant loans INR 38.31 bln vs INR 33.03 bln qtr ago 
--One 97 Comm: Oct-Dec personal loans INR 17.46 bln vs INR 19.77 bln qtr ago 
--One 97 Comm: Key fincl svcs customers 0.6 mln on Dec 31, unch from qtr ago 
--One 97 Comm: Merchant device subscribers 11.7 mln on Dec 31 
--One 97 Comm: Oct-Dec net payment margin INR 4.89 bln, up 5% on qtr 
--One 97 Comm:Oct-Dec contribution margin 52% vs 54% in Jul-Sept, 53% yr ago 
--One 97 Comm:Oct-Dec payments revenue INR 10.59 bln, up 8% on qtr 
--One 97 Comm: Oct-Dec fincl services revenue INR 5.02 bln vs INR 6.07 bln 
--One 97 Comm: Cash balance at INR 128.50 bln at end of Oct-Dec 
--One 97 Comm: Oct-Dec EBITDA at INR 2.23 bln 
--One 97 Comm Apr-Dec consol revenue INR 49.89 bln vs INR 77.11 bln yr ago 
--One 97 Comm Apr-Dec consol net loss INR 1.2 bln vs INR 8.7 bln loss yr ago 
--One 97 Comm Oct-Dec consol revenue INR 18.28 bln vs INR 28.51 bln yr ago 
--One 97 Comm Oct-Dec consol net loss INR 2.1 bln vs INR 2.2 bln loss yr ago 
--Analysts saw One 97 Comm Oct-Dec net loss at INR 3.47-3.56 bln 

 

By Krity Ambey

 

NEW DELHI – One97 Communications Ltd was back in the red in Oct-Dec after the company reported its first-ever profit in the September quarter on account of divestment. Except for Jul-Sept, the company had not seen a profit in any of the quarters since its listing in 2021.

 

The Paytm parent company reported a loss of INR 2.1 billion for the quarter ended December, marginally lower than its loss of INR 2.2 billion a year ago. However, the company's loss was significantly less than the Street's estimate as analysts expected it to grow to INR 3.47-3.56 billion. 

 

One97 Communications' consolidated revenue fell 35% to INR 18.28 billion in Oct-Dec. Sequentially though, the company's consolidated revenue was up 10%. Analysts had expected its revenue to be close to INR 18 billion.  

 

The revenue from financial services and payment services bolstered the company's net sales during the December quarter. Its income from financial services grew 33.5% on quarter to INR 5.02 billion, and that from payment services rose 8% from Jul-Sept to INR 10.59 billion. The fintech company's net payment margin increased 5% on quarter to INR 4.98 billion, largely on account of higher subscription revenue.

 

The company's contribution margin fell to 52% in Oct-Dec from 54% in Jul-Sept due to an increase in Default Loss Guarantee cost. The company started the Default Loss Guarantee program last quarter. "We expect contribution margin excluding UPI (Unified Payment Interface) incentive to remain in 50-55% range and including UPI incentive to be in 55-60% range," the company said. 

 

Within the company's loan distribution segment, merchant loans rose to INR 38.31 billion in Oct-Dec from INR 33.03 billion a quarter ago. "More than 50% of (merchant) loans distributed are to repeat borrowers," the company said.

 

On the other hand, personal loans fell to INR 17.46 billion from INR 19.77 billion. "We have been primarily focused on the distribution only model, wherein we have seen reduction in disbursements on account of tightening risk policies by lenders, which is inline with industry trends," One97 Communications said.

 

Considering the sequential growth in revenue, One 97 Communications' operating loss, as determined by earnings before interest, taxes, depreciation, and amortisation, shrank to INR 2.23 billion. The company also said that it ended the reporting quarter with a cash balance of INR 128.50 billion, on the back of cash received towards the sale of Stock Acquisition Rights of PayPay Corporation, Japan and improvement in working capital.

 

The company added around 500,000 more merchant subscribers, taking the base to 11.7 mln as on Dec 31. However, it did not add any financial services customers in the reporting quarter.

 

On a cumulative basis, the consolidated loss was INR 1.2 billion in Apr-Dec, against INR 8.70 billion a year ago. The consolidated revenue was also down 35.3% on year at INR 49.89 billion in the first nine months of the fiscal year.  End

 

Edited by Deepshikha Bhardwaj

 

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