Paytm Q1 results preview: Net loss likely to narrow down to ₹310 crore; revenue may grow 43% YoY
One 97 Communications, the parent company of Paytm, is likely to report a loss of ₹310 crore, declining by 51% from the loss of ₹640 crore posted in the same quarter last year, as per analysts. However, the company reported a lower net loss of ₹168 crore in the Jan-March quarter. The company’s revenue from operations in Q1FY24 is expected to grow by around 43% YoY to ₹2,410 crore. Sequentially, revenue is estimated to remain flat.
EBITDA loss during the quarter is likely to be at around ₹275 crore. Also Read: JSW Steel Q1 Results: Net profit soars 179% on year to ₹2,338 crore During the quarter ended June 2023, Paytm’s Merchant Payment Volumes (GMV) stood at ₹4.05 lakh crore, YoY growth of 37%. The company continued scale in its loan distribution business with disbursements of ₹14,845 crore, up 167% YoY, and 1.28 crore loans, a growth of 51% YoY distributed in the quarter, Paytm had said in its Q1 business update. Brokerage firm Motilal Oswal Financial Services expects Paytm’s operating profitability to increase, driven by improvement in contribution margin and operating leverage.
It expects steady growth in loan disbursements and GMV and the number of subscription payment devices to sustain the current run rate. Paytm is using its offline network of point of sale devices to increase business growth and retention. The company has guided that it intends to expand its sales team, which will help the company to deploy more POS machines in tier - 2 and 3 cities.
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