Paytm Share Price Today: Paytm shares rose in Wednesday’s trade by nearly a per cent to Rs 668 apiece on the BSE even after the company’s net loss in the July-September period swelled to Rs 571 crore as compared to Rs 473 crore a year earlier, however, narrowed from Rs 650 crore in the previous quarter of June 2022. Its consolidated revenue from operations during July-September 2022 jumped nearly 76 per cent to Rs 1,914 crore, against Rs 1,086.4 crore in the year-ago period.
Paytm’s revenue from ‘payment services to consumers’ registered a jump of 55 per cent year-on-year to Rs 549 crore, while payment services to merchants went up by 56 per cent to Rs 624 crore YoY.
The top-line growth was driven by increase in merchant subscription revenues, growth in bill payments due to growing MTU (monthly transaction user), and growth in disbursements of loans through the platform, Paytm said in its BSE filing on November 7.
The company further said its payments services revenue grew 56 per cent YoY, led by continued platform expansion across MTU, merchant base, subscription merchants, and GMV (gross merchandise value).
Continued growth in subscription (and MDR) revenues from offline merchants, led by the ramp-up of devices business, and higher GMV from online merchants in the payment gateway business also boosted payments services revenue, it added.
One 97 Communications said revenue in the financial services and others business, which accounted for 18 per cent of top line, at Rs 349 crore increased by 293 per cent YoY (up 29 per cent QoQ) driven by sourcing and collection revenues in loan distribution business.
Total loans disbursed, in partnership with lending partners were 9.2 million during the quarter (up 224 per cent YoY and 8 per cent QoQ), amounting to Rs 7,313 crore (up 482 per cent YoY and 32 per cent QoQ), it said.
Paytm exited Q2FY23 with disbursements in loan distribution business at an annualized run-rate of about Rs 34,000 crore.
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“One 97 Communications (Paytm) continues to improve its revenue and margin profile, evident in the narrowing of consolidated loss in Q2FY23 (vs loss in Q1FY23). The performance was characterised by sustained lower processing charges and net payment margin improving a tad; sharp acceleration in lending business; enhanced contribution/adjusted-EBITDA margin with higher financial services/cloud revenue growth further aided by lower indirect costs; sustained growth in monthly transacting users (MTUs), deployment of offline devices and continued build-up of the gross merchandise value (GMV),” highlighted ICICI Securities.
The company’s net payment margin (calculated as payments revenues plus other operating revenues, less payment processing cost) increased multi-fold to Rs 443 crores on a year-on-year basis on account of improved monetisation and continued focus on reduction in payment processing charges.
“Steady improvement in margin profile with better monetisation suggests achievement of operating profitability (positive EBITDA before ESOP cost) ahead of its guided timeline of Q2FY24,” the note stated. The brokerage has maintained its Buy rating on Paytm shares with an unchanged target price of Rs 1,285 apiece.
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