Paytm Q2 Results Preview: Revenue seen over 35% on high GMV, disbursement projections; losses to decline

livemint.com:

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.

The gross merchandise value (GMV) is also expected to rise further in the second quarter of current fiscal, after registering a growth of 37 per cent year-on-year (YoY) to ₹4.05 lakh crore in the preceding April-June quarter. According to global brokerage house Jefferies, Paytm is also 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 with better credit business.

Also Read: Paytm share price: Goldman Sachs gives 'buy' tag, predicts 30% upside in long term -Domestic brokerage firm Motilal Oswal estimates that the fintech's revenue from operations in the September quarter is likely to come above 35 per cent year-on-year to around ₹2,500 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.