Suryaa Business Desk: Surya Financial & Business Bureau, Mumbai: Leading fintech giant Paytm's parent company, One97 Communications Ltd, in the second quarter of the current financial year... Surya Financial & Business Bureau, Mumbai: Leading fintech giant Paytm's parent company One97 Communications Ltd has reported strong financial results for the second quarter (Q2) of the current financial year. The company disclosed that the net profit has increased by 2.7 percent to Rs.226 crores while continuing to make profits for the sixth consecutive quarter. Operating income also rose by 8.2 percent to Rs 2,648 crore compared to the previous quarter.
On the occasion of the release of these results, the management issued key guidance on the upcoming UPI Merchant Discount Rate (MDR) implementation and its impact. 2 to 3 quarters for UPI MDR stabilisation: The company estimates that Paytm's payments processing margin (PPM) is likely to increase by around 2.5 basis points after the implementation of NPCI's proposed 0.4 per cent MDR cap on select transactions above Rs 2,000. However, the management clarified that it will take at least 2 to 3 quarters for the effect of these policy changes to fully settle in the market. Currently, the company's payment processing margins remain stable at over 4 basis points.
EBITDA and UPI market share growth: Company EBITDA increased by 33 percent to a record Rs 270 crore, while EBITDA margins improved by 190 basis points to 10.2 percent. Paytm reported a 42 percent growth in UPI transaction value, while monthly transaction users (MTU) increased to 8.5 crore. At the same time, the board approved investments of Rs.500 crore in Paytm Cloud Tech and another Rs.500 crore in its Singapore subsidiary for the expansion of technology and cloud divisions.
