PhonePe results: Net loss declines to ₹1996 crore, revenue jumps to ₹5,064 crore
PhonePe results: The digital payments company PhonePe has reported a slight decrease in its consolidated net loss, dropping from ₹2,795 crore in March 2023 to ₹1,996 crore in March 2024, as per a Tofler report.
In addition, the company experienced a significant increase in revenue, reaching ₹5,064 crore for the financial year 2023-24, compared to ₹2,914 crore in the previous year, marking a 74% growth.
On a standalone basis, PhonePe’s revenue also surged to ₹4,910 crore for the financial year 2023-24, up from ₹2,859 crore in the previous year, representing a 72% increase. Furthermore, the company’s net loss on a standalone basis decreased to ₹1,166 crore from ₹2,107 crore in the previous financial year.
PhonePe’s recent financial performance has been noteworthy. The fintech startup achieved a post-tax profit of ₹197 crore in the financial year 2024, excluding expenses related to employee stock options (ESOPs). This is a significant improvement from the ₹738 crore loss reported in the previous year.
The company’s standalone payments business also showed positive results, with an adjusted profit after tax (PAT) of ₹710 crore for FY24, compared to a ₹194 crore loss in the prior year, according to a statement released by the company.
However, when factoring in ESOP costs, PhonePe reported an overall loss. ESOPs, commonly used to reward and retain employees, can create financial and tax challenges for both the company and its employees. PhonePe did not disclose the specific costs associated with its ESOPs.
PhonePe’s Chief Financial Officer, Adarsh Nahata, outlined the company’s financial strategy, focusing on three key pillars: predictable and sustainable revenue growth, revenue stream diversification, and ongoing bottom-line improvements.
In 2023, the UPI merchant ventured into the stock broking business with the launch of Groww and Zerodha.
Furthermore, company operates a commerce division known as Pincode, which serves a wide range of categories both within and outside of the Open Network for Digital Commerce (ONDC) platform.
For more market insights, follow our blog.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.