Paytm’s FY20 loss reduces to Rs 2,942.3 cr; turnover rises to 1.3 percent, Retail News, ET Retail

New Delhi, One97 Communications Ltd, which operates Paytm, saw its losses shrink to Rs 2,942.36 crore in the financial year ending March 2020, according to regulatory documents. The company had recorded a consolidated loss of Rs 4,217.2 crore for the fiscal year ending March 2019, according to the Company Register filing shared by market intelligence firm Tofler.

Paytm, which competes with players like Flipkart’s PhonePe and Google Pay, posted a 1.3% increase in total consolidated revenue to Rs 3,628.85 crore for the fiscal year ending March 2020 versus Rs 3,579.67 crore for the financial year ended March 2019.

When contacted, Paytm shared his September statement, when the company said its revenue for the 2019-20 period had increased to Rs 3,629 crore with a 40% drop in losses.

However, he had not shared the amount of loss recorded in 2019-20 at that time.

On a standalone basis, the company’s total turnover was Rs 3,350.59 crore in 2019-20 compared to Rs 3,391.61 crore from the previous financial year, according to the regulatory document.

However, Paytm managed to reduce losses even on a standalone basis from Rs 3,959.64 crore in 2018-19 to Rs 2,833.18 crore in 2019-20.

Paytm, in its paper, noted that COVID-19 continues to spread around the world and in India and that it has impacted all local and global economic activities.

“The company has considered the possible effects that COVID-19 may have on the book value of receivables, investments, goodwill, etc.

“During the valuation, the company was aware of internal and external information up to the date of approval of the financial statements,” he said.

“However, assessing the impact of COVID-19 is an ongoing process given the uncertainties associated with its nature and duration, and will continue to monitor for any material changes in future economic conditions,” he added. SR HRS