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Informist, Tuesday, May 6, 2025

 

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--One 97 Comm Jan-Mar merchant loans INR 43.15 bln vs INR 38.31 bln qtr ago
--One 97 Comm Jan-Mar personal loans INR 14.22 bln vs INR 17.46 bln qtr ago
--One 97 Comm Jan-Mar marketing services revenue INR 2.67 bln, unch on qtr
--One 97 Comm FY25 contribution margin 53% vs 56% year ago
--One 97 Comm Jan-Mar contribution margin 56% vs 52% in Oct-Dec, 57% yr ago
--One 97 Comm:Capex in future to rise, but remain much lower than FY24 level
--One 97 Comm: Key fincl svcs customers 550,000 on Mar 31 vs 590,000 qtr ago
--One 97 Comm:Capex in future to rise in line with pace of device deployment
--One 97 Comm FY25 capex at INR 3.17 bln vs INR 8.13 bln in FY24
--One 97 Comm Jan-Mar payments services revenue INR 10.46 bln, up 4% on qtr
--One 97 Comm Jan-Mar fincl services revenue INR 5.45 bln, up 9% on qtr
--One 97 Comm Jan-Mar net payment margin INR 5.78 bln vs INR 4.88 bln qtr ago
--One 97 Comm cash balance as on Mar 31 at INR 128.09 bln
--One 97 Comm Jan-Mar EBITDA loss at INR 880 mln vs INR 2.23 bln qtr ago
--One 97 Comm: Merchant device subscribers 12.4 mln as on Mar 31
--One 97 Comm Jan-Mar one-time cost INR 5.22 bln
--One 97 Comm FY25 consol revenue INR 69.00 bln vs INR 99.78 bln yr ago
--One 97 Comm Jan-Mar consol revenue INR 19.12 bln vs INR 22.67 bln year ago
--One 97 Comm FY25 consol net loss INR 6.59 bln vs INR 14.17 bln loss yr ago
--One 97 Comm Jan-Mar consol net loss INR 5.40 bln vs INR 5.50 bln loss
--One 97 Comm Jan-Mar consol net loss INR 5.40 bln 

By Krity Ambey

 

NEW DELHI – One 97 Communications Ltd.'s consolidated net loss increased to INR 5.40 billion in Jan-Mar from INR 2.1 billion in Oct-Dec on account of exceptional costs during the quarter. Exceptional cost of INR 5.22 billion borne by the parent company of Paytm included INR 4.92 billion for acceleration of employee stock ownership and INR 300 million towards impairment pertaining to a subsidiary.

 

If not for these expenses, the company's loss would have been a mere INR 230 million in Jan-Mar, One 97 Communications said in a press release.

 

The company said its founder and Chief Executive Officer Vijay Shekhar Sharma had voluntarily forgone all INR 21 million ESOPs granted to him, which resulted in a one-time non-cash, acceleration of ESOP expense, and an equivalent lowering of ESOP expenses in future years. Current financial year onwards, the company's ESOP cost will be substantially lower, the press release said, projecting it in the range of INR 750 million to INR 1 billion in Apr-Jun against INR 1.69 billion in Jan-Mar.

 

The company's underlying ESOP grant of INR 40.92 billion, which was recorded in the financial results for FY22 to FY25, has been credited back to retained earnings and has increased the free reserves of the company, the release said.

 

The consolidated revenue of One 97 Communications was down 15.7% on year at INR 19.12 billion in Jan-Mar. Sequentially, however, the company's consolidated revenue was up 4.6%. Analysts, who were divided on the company's quarterly performance with two out of four projecting a profit, had expected its revenue to be close to INR 20.72 billion.

 

The company's focus areas to sustain growth are payments and distribution of financial services. Its income from financial services grew 9% on quarter to INR 5.45 billion, and that from payment services rose 4% from Oct-Dec to INR 10.46 billion. The fintech company's net payment margin increased 18% on quarter to INR 5.78 billion.

 

The company's contribution margin rose to 56% in Jan-Mar from 52% in Oct-Dec due to an increase in share of high margin financial services revenue. The company started the Default Loss Guarantee programme last quarter. The contribution margin was within the guidance range given by the company earlier.

 

Within the company's loan distribution segment, merchant loans rose to INR 43.15 billion in Jan-Mar from INR 38.31 billion a quarter ago. On the other hand, personal loans fell to INR 14.22 billion from INR 17.46 billion.

 

Considering the sequential growth in revenue, the company's operating loss, as determined by earnings before interest, taxes, depreciation, and amortisation, shrank to INR 880 million in Jan-Mar. The company also said that it ended the reporting quarter with a cash balance of INR 128.09 billion, on the back of cash received from sale of entertainment ticketing business, and the sale of Stock Acquisition Rights of PayPay Corp.

 

The company added around 800,000 merchant subscribers, taking the base to 12.4 million as on Mar. 31. However, it did not add any financial services customers in the March quarter.

 

The company's consolidated loss for 2024-25 (Apr-Mar) was INR 6.59 billion, against INR 14.17 billion a year ago. The consolidated revenue was down 30.8% at INR 69.00 billion for the year. The company announced its financial results for quarter after market hours. On Tuesday, its shares ended 6% lower at INR 814.85 on the National Stock Exchange.  End

 

Edited by Ashish Shirke

 

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