Paytm Q2 Results Live Updates: Revenue may rise 35%; losses to narrow

Paytm Q2 Results Live: Goldman Sachs gives ‘buy’ tag, predicts 30% upside in long term

Goldman Sachs believes that Paytm share price has potential to continue uptrend. The global brokerage has predicted that paytm share price may go up to ₹1250 apiece in the long term.

On reasons for being bullish on Paytm shares, Goldman Sachs report says, “Paytm’s operating metrics have been surprising positively, and we are further raising our FY24-26E EBITDA estimates by 2-5%, with our target price moving to ₹1,250 (was ₹1,200). We forecast 30% YoY revenue growth for Paytm in 2QFY24 (Sep ’23; results on 20 October), at the higher end of our India internet coverage, with a 6.3% EBITDA margin (excl. ESOP; was 3.6% in 1Q). At US$200 mn in FY25 EBITDA, we continue to expect Paytm to be the most profitable company within India internet, and see the company turning net income positive in FY25 as a catalyst for the stock.” Read here

Paytm Q2 Results Live: Paytm revenues jumped 3x in 2 years

In 2 years, Paytm’s revenues have jumped 3x, gross margins surged to 54% (from 13%) and placed the company on a path to profitability

With just 5% user penetration, Paytm’s loan disbursals have surged 10x to over $8 billion. In payments, revenues expanded around 2.5x with ramp-up in merchant subscription business and margins jumped 20pp, led by industry tailwinds and management shedding unprofitable lines. 

Paytm Q2 Results Live: Paytm to enter league of large profitable fintechs in four quarters, says Jefferies

Fintech major Paytm is expected to enter the global list of large profitable fintechs in four quarters and its share price is yet to reflect the company’s changed profile, according to global brokerage house Jefferies.

Jefferies has initiated its coverage on One 97 Communications, the parent company of Paytm, with a ‘Buy’ rating and a target price of ₹1,300 per share, implying an upside of over 37% from Wednesday’s closing price.

“In next 4 quarters, Paytm will turn profitable and be amongst the few large profitable fintechs globally that enjoy strong growth (>30%), double-digit EBITDA margins and stable profitability. However, its valuations at 3.6x FY25 EV/revenue remain at a 40% discount to this group,” Jefferies said. Read here

Paytm Q2 Results Live: A look at Paytm Q2 Results Preview

One97 Communications – the operator and parent company of Paytm will announce its July-September quarter results for fiscal 2023-24 (Q2FY24) on Friday, October 20. The fintech major is expected to report strong revenue growth driven by high loan disbursals, according to estimates by analysts and leading brokerage houses. Read full report here

Paytm Results Live: Monthly users rise 20% in July-August, GMV up 43%

Paytm reported a 20% YoY growth in average monthly transacting users at 94 million in the July-August period from 79 million in the same period last year. Paytm disbursed loans worth ₹5,517 crore through its lending platform in August 2023, the company said.

The company’s merchant payment volumes (GMV) increased by 43% year-on-year to ₹3 trillion ($36.3 billion) in July-August 2023, up from ₹2.1 trillion in July-August 2022. Paytm continued to see an increase in GMV of non-UPI instruments like EMI and cards.

The company’s loan distribution business (in partnership with lender partners) increased 137 per cent YoY, with disbursements of ₹10,710 crore in July-August 2023, The number of loans also increased 47 per cent YoY to 8.8 million in July-August 2023. Read here

Paytm Results Live: GMV likely to rise more than 45% YoY

The gross merchandise value (GMV) is also expected to rise further in the second quarter of current fiscal, after registering a growth of 37% year-on-year (YoY) to ₹4.05 lakh crore in the preceding April-June quarter. 

GMV is likely to rise more than 45% YoY and the total value of loan disbursed may come in above 130%. “We raise our FY25E GMV and disbursement estimates by 5 per cent and 21 per cent, respectively, and estimate the mix of Financial revenue to increase to 32 per cent by FY25E from 19 per cent in FY23,” Motilal Oswal said.

Paytm Results Live: Revenue may rise 35% YoY; loss to shrink by 51%

Domestic brokerage firm Motilal Oswal estimates that the fintech’s revenue from operations in the September quarter is likely to see a growth of 35% year-on-year to around ₹2,600 crore. Net losses of the company is likely to narrow by over 51% to ₹280 crore.

The profitability of Paytm’s core payment business is further enhanced by its financial services division, which benefits from inherently higher contribution margin, said the brokerage.

Paytm is looking to add more lending partners in FY24, which will help absorb the flow that it is capable of originating via its platform. “We believe that constant improvement in contribution margin and operating leverage will continue to drive Paytm’s operating profitability,” said Motilal Oswal.

Paytm Results Live: Paytm, JSW Steel to L&T Finance — 38 companies to announce Q2 results today

A total of 38 Dalal Street listed companies are going to declare their Q2 earning for the financial year 2023-24. Those 38 listed companies include JSW Steel, JSW Energy, Paytm, Hindustan Zinc, Central Bank of India, L&T Finance Holdings, Poonawalla Fincorp, Laurus Labs, Tejas Networks, Atul, Sunteck Realty, Just Dial, Butterfly Gandhimathi Appliances, etc. Read full report here

Paytm Results Live: Revenue to see healthy growth, losses to narrow

Paytm is expected to report strong revenue growth driven by high loan disbursals, according to estimates by analysts and leading brokerage houses. The fintech major’s revenue in Q2FY24 may rise 35% YoY, while its net losses are likely to narrow down. Operating profitability is likely to increase with steady growth in loan disbursements.

Paytm Results Live: Paytm to announce Q2 results today

One97 Communications, the parent company of fintech giant Paytm, will announce its financial results for the July-September quarter of fiscal 2023-24 (Q2FY24) today, 20 October 2023.