Q4 2024 One 97 Communications Ltd Earnings Call Transcript
Key Points
- One97 Communications Ltd (BOM:543396) achieved its first full year of EBITDA profitability since IPO, with INR559 crores.
- Revenue for the full year was close to INR10,000 crores, showing growth across all three business segments.
- The company reported a contribution profit of INR5,500 crores, representing a 56% margin.
- Merchant business has started to grow again in April and May, with MTUs stabilizing in May.
- The company is expanding its focus into insurance broking and equity broking, aiming to enhance financial inclusion and wealth management products.
- Revenue for the quarter dropped to INR2,267 crores, a decline on a quarter-on-quarter basis.
- The active merchant base declined by 10 lakhs, roughly 10% of the overall merchants, due to higher attrition and paused new merchant additions.
- The company expects an incremental EBITDA impact of INR100 crores to INR150 crores in Q1 due to lower MTUs and active merchants.
- There is a projected annualized people cost savings of INR400 crores to INR500 crores, indicating potential layoffs or cost-cutting measures.
- The company faces regulatory challenges, including pending approval for the payment aggregator license and ongoing compliance issues.
(video playing)
Thank you for joining, and welcome to Paytm's earnings call to discuss financial results for the quarter ended and financial year ended March 31, 2024. From Paytm's management, we have with us today Mr. Vijay Shekhar Sharma, Founder and CEO; Mr. Madhur Deora, President and Group CFO; Mr. Anuj Mittal, Senior Vice President, Investor Relations.
A few standard announcements before we begin. This call is for existing shareholders of Paytm and potential investors and research analysts. This call is not meant for the media. If any media representative are on this call, request you to kindly drop off at this point.
The information to be presented and discussed here should not be recorded, reproduced, or redistributed in any manner. Some statements made today may be forward-looking in nature. Actual events may differ materially from those anticipated in such forward-looking statements.
Finally, this call is scheduled for 60 minutes. It will have a presentation by the management, followed by a Q&A.
With this, we'll start the call. I request Mr.
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