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Paytm warns of job cuts as losses swell after RBI clampdown

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Indian digital payments platform Paytm warned of job cuts on Wednesday after reporting that its net loss widened in the fourth quarter as it grapples with a recent regulatory clampdown.

One97 Communications, Paytm’s parent, said it expects to cut employee expenses and pare down its annual staff costs by $48 million to $60 million.

The company, once the most valuable Indian startup, reported a net loss of $66.1 million in the fourth quarter ended March 2024, compared to a loss of $20.11 million a year earlier. Revenue declined about 3% to $272.4 million from $280.4 million in the same period.

India’s central bank in February banned the company’s banking partner and sister company, Paytm Payments Bank, from conducting banking activity from March. That brought a sudden halt to Paytm’s slew of banking services, and the company was forced to ink new partnerships with other banks to keep many of those services running.

Paytm said it also took an impairment charge of $27.2 million related to its investment in Paytm Payments Bank in the quarter. In the quarter ending June this year, Paytm projected its revenue to be in the range of $180 million to $192 million.

In the full year ended March, Paytm’s revenue increased 25% to $1.19 billion from a year earlier, though higher payment processing charges, marketing costs, employee benefits charges and software cloud expenses weighed on its bottom line. As a result, net loss widened to $170 million from a loss of $213 million a year earlier.

Paytm’s results include “enough data points to suggest that the business is past the bottom in terms of payment volumes and user/merchant traction,” Bernstein analysts said in a note to clients. “Though from a financial metrics perspective, 1QFY25 is likely to be the bottom, as it would reflect the full impact of the lower steady state (vs. 2 months impact in 4QFY24).”

The analysts, however, cautioned that Paytm’s payment GMV has dropped by about 20% and the company’s expectations for its payment processing margin has also declined, which together “translates to a near 50% blow to the payment margins.” They estimated, however, that Paytm’s merchant lending volumes picked up in March and April — a clear sign of revival.

Paytm had about $1.03 billion in the bank as of March 31. The company’s shares were down about 1% on Wednesday afternoon to ₹349.20, giving it a market cap of $2.64 billion. Paytm went public in 2021 at a valuation of $20 billion.

“I am happy to share that we have successfully transitioned our core payment business from PPBL to other partner banks. This move de-risks our business model and also opens up new opportunities for long-term monetization, given our platform’s strength around customer and merchant engagement,” said Paytm’s founder and CEO, Vijay Shekhar Sharma, in the company’s annual shareholder letter.

“It has been possible in such a short period of time with extensive support from the Regulator, NPCI, Bank partners and our committed team mates. The unwavering commitment of our government and regulator to support innovation and financial inclusion, keeps us true to our mission and committed to our long-term sustainable growth opportunity,” he added.



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Greenhouse Gases Are Alerting Oceans ‘Before Our Eyes,’ Says NASA

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NASA has shared a stunning yet concerning visualisation of sea surface currents and how they are being altered due to global warming. The visualisation depicts the average temperatures of ocean currents and how they differ at different locations.

The warmer hues such as red, orange, and yellow indicate higher temperatures, and cooler shades like green and blue represent lower temperatures.

“With 70% of the planet covered by water, the seas are important drivers of Earth’s global climate. Yet, increasing greenhouse gases from human activities are altering the ocean before our eyes,” the agency captioned the post.

According to NASA, 90 percent of the planet’s warming occurs within the ocean. Since modern recordkeeping began in 1955, the internal heat of the ocean has steadily increased, contributing significantly to climate change.

ALSO SEE: World’s Oceans Are Losing Their “Memory” As A Result Of Global Warming, Experts Claim

The heat stored in the ocean leads to thermal expansion, a process where water expands as it warms. This phenomenon is a major contributor to global sea level rise, accounting for one-third to one-half of the increase.

Scientists say the majority of this heat is concentrated at the surface, within the top 700 meters of the ocean. According to existing records, the past decade has been the warmest for the ocean since at least the 1800s, with 2023 marking the highest recorded ocean temperatures to date.

ALSO SEE: Arctic Ocean Warming Started Decades Earlier Than Previously Thought

The warming of the ocean has far-reaching effects. One of the most visible impacts is the rise in sea levels, primarily due to thermal expansion. Warmer waters have also led to widespread coral bleaching, which affects marine ecosystems and the increased temperatures also accelerate the melting of Earth’s major ice sheets.

NASA says that the warming ocean intensifies hurricanes affect ocean health and biochemistry, altering marine life habitats and disrupting food chains.





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NASA Shares Incredible Picture Of ‘Space Potato’ Phobos; It Will Soon Crash Into Mars

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Ever seen a space potato? NASA is here to treat you with one. The agency has shared a fascinating image of Phobos, the larger of two moons of Mars, explaining what makes this object so intriguing.

Meauring just 27 by 22 by 18 kilometres in diameter, Phobos orbits Mars about 6,000 km above the red planet’s surface and it is on a collision course with Earth.

This is the closest any Moon orbits a planet and Phobos might crash into Mars in the future. Scientists estimate that this is likely to happen within 50 million years. Another likely scenario of Phobos’ end will be its potential obliteration into pieces, eventually forming a ring around Mars.

According to NASA, Phobos is nearing Mars at the rate of six feet each year.

ALSO SEE: We May Have Been Wrong About Martian Moon Phobos’ Origin, It Could Be A Comet

Phobos (left) and Deimos (right). Image: NASA

Describing the image, the agency said that it was taken by the High Resolution Imaging Science Experiment (HiRISE) camera on the Mars Reconnaissance Orbiter, which has been studying Mars since 2006.

Phobos was discovered along with its twin just six days apart by astronomer Asaph Hall in 1877.

ALSO SEE: ISRO’s Mangalyaan Presents Breathtaking Video Of Martian Moon ‘Phobos’

The Moon also has several craters but the most dominant one is the 10-km-wide Stickeny crater which Hall named after his wife Angelina.

The second moon is Deimos which measures 15 by 12 by 11 kilometres and orbits the red planet every 30 hours. Both the moons are named after the mythological sons of Ares, the Greek counterpart of the Roman god. Phobos means fear and Deimos means dread, says NASA. As for their origin, astronomers believe they could be asteroids or debris caught by Mars in the early solar system.

(Image: NASA)





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Rare ‘Gigantic Jets’ Spotted Above The Himalayas, NASA Shares Viral Picture

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NASA recently shared a captivating image of gigantic jets soaring from a thunderstorm toward the Himalayan Mountains in China and Bhutan. This composite image, featured in NASA’s Astronomy Picture of the Day segment on June 18, reveals four immense jets captured within minutes of each other.

Gigantic jets are a rare and fascinating type of lightning discharge that have only been documented since the early 2000s. Unlike conventional lightning that occurs between clouds or strikes the ground, gigantic jets bridge the gap between thunderstorms and the Earth’s ionosphere, the layer of the atmosphere that is ionised by solar and cosmic radiation, NASA said.

Jets of lightning spotted over the Himalayas. Image: NASA/Li Xuanhua

These jets are unique in their appearance and behavior, differing significantly from traditional lightning phenomena.

ALSO SEE: Webb Telescope Photographs Baby Stars Burping Out Gases For The First Time

Despite their visual grandeur, the precise mechanisms and triggers behind gigantic jets are still under investigation. What is known is that these jets help to balance electrical charges between different layers of the Earth’s atmosphere, playing a crucial role in maintaining the atmospheric electrical circuit.

For those interested in observing this phenomenon, a powerful but distant thunderstorm viewed from a clear vantage point offers the best chance.

As these jets typically shoot upwards from the storm tops into the ionosphere, they can often be seen from hundreds of kilometers away under the right conditions.

ALSO SEE: NASA Shares First Cosmic Image Of 2024 And It’s Exploding With Stars



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