Paytm Q3 result preview: Fintech giant likely to see 32% YoY revenue growth, losses to narrow
One 97 Communications, the parent company of fintech giant Paytm, is set to announce its earnings for the October-December quarter of FY24 on Friday, January 19. The company’s revenue from operations during Q3FY24 is expected to grow 32% year-on-year (YoY) to ₹2,721 crore, as per brokerages’ estimates.
Revenue may rise 8% on a sequential basis. Paytm Q3 loss is estimated to drop by 29% YoY to ₹280 crore.
On a sequential basis, losses may narrow by 4.3% from the September quarter. Also Read: HUL Q3 result preview: FMCG major likely to see flat revenue, net profit growth; weak demand to hit volumes The company’s operating profitability is also expected to increase, driven by improvement in contribution margin on a sequential basis In the September quarter, Paytm reported a revenue of ₹2,518.6 crore and a net loss of ₹290.05 crore.
Yes Securities assumes 6% QoQ growth in Payments Services to Consumers, 12% QoQ growth in Payments Services to Merchants and 6% QoQ growth in Financial Services and Others and arrives at an overall growth in revenue from operations of 8.1% QoQ. “We forecast Payment Processing Charges (PPC) as a proportion of Payments Revenue to be at 54.5%, a metric that was 54.4% in 2QFY24.
We arrive at a Total Expenses (ex PPC) growth of 6% QoQ, compared with a growth of 3% in 2QFY24, resulting in an EBITDA margin (ex-Other Income and after ESOP cost) of -8.3%, an improvement of 89 bps QoQ," said Yes Securities. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Brokerage firm Motilal Oswal Financial Services expects healthy growth in total revenue and decline in disbursements and GMV during the quarter.
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