The growth in the revenue was led by increase in GMV, merchant subscription revenues, and growth of loans distributed through our platform. There are no UPI incentives booked during the quarter as we book UPI incentives after government issues the gazette notification, which is typically in H2 of the financial year.

In Q1 FY24, EBITDA before ESOP cost was at Rs 84 crore as compared with negative Rs 275 crore in Q1 FY23. EBITDA before ESOP cost margin improved to 4% of revenues in Q3 FY23 from negative 16% of revenues in Q1 FY23.

The increase in the margin was mainly on account of increase in contribution margin and operating leverage. Improved operating leverage with indirect expenses (as a % of revenues) decreasing to 52% in June 2023 from 60% in June 2022.

The company's contribution profit for the quarter stood at Rs 1,304 crore, an increase of 80% YoY. The contribution margin expanded to 56% in this quarter, an increase of 12 basis points YoY, with increase in net payment margin and growth in loan distribution business.

Contribution profit, a non-GAAP financial measure, is defined as revenue from operations less payment processing charges, promotional cashback & incentives expenses, connectivity & content fees, contest, ticketing & FASTag expenses & logistic, deployment & collection cost of businesses.

In Q1 FY24, the company's payments services revenue grew 31% YoY to Rs 1,414 crore. Despite no UPI incentives received during the quarter, payment processing margin was at the high end of guided 7-9bps range (of GMV). In the medium to long term, the company expects payment processing margin to settle at 5-7bps as share of UPI transactions increases

Revenue in the financial services and others business was Rs 522 crore, up 93% YoY. Due to the increase in repo rates over the last year, the company absorbed a small percentage of this increase to maintain the right portfolio mix and quality of acquisition.

Total loans disbursed, in partnership with lending partners were 12.8 million in the quarter, registering a growth of 51% YoY. The value of loans disbursed grew to Rs 14,845 crore, a growth of 167% YoY.

Average monthly transacting users (MTU) continued to grow and were 92 million for the quarter, increasing 23% YoY as adoption of mobile payments for consumers in India continues.

The gross merchandise value grew 37% YoY to Rs 4.05 lakh crore. The payment processing margin has further improved to 7-9 bps range due to increase in GMV of non-UPI instruments like EMI and cards, and lower interchange cost for Wallet, post interoperability circular by NPCI, and postpaid due to better portfolio quality.

Merchant subscriptions increased to 7.9 million compared to 3.8 million a year ago. The leadership in payment monetization continued and added 11 Lakh new subscriptions in last quarter, said the company.

Commerce & cloud revenues grew 22% YoY to Rs 405 crore. Revenue in the Cloud business grew by 29% YoY to Rs 249 crore, due to growth in credit card distribution and advertising business, whereas marketing cloud is a mature business. The company sees cross-sell opportunities for credit cards from our existing postpaid user base.

The company's net cash, cash equivalent and investable balance of Rs 8,367 crore as of June 2023.

Paytm is India's payment Super App offering consumers and merchants most comprehensive payment services. Pioneer of the mobile QR payments revolution in India, Paytm's mission is to bring half a billion Indians into the mainstream economy through technology-led financial services. Paytm enables commerce for small merchants and distributes various financial services offerings to its consumers and merchants in partnership with financial institutions.

The scrip ended 0.89% lower at Rs 843.55 on the BSE.