Home FINANCE Paytm at near 6-month high as quarterly revenue surges

Paytm at near 6-month high as quarterly revenue surges

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BENGALURU: Shares of digital payments firm Paytm jumped more than 6% on Monday to their highest levels in nearly six months, after the company’s parent firm One 97 Communications posted an 89% surge in its quarterly revenue.
Higher number of monthly users, additional payment devices and more disbursal of loans lifted the company’s revenue to Rs 1,680 crore ($211.16 million), from Rs 891 crore last year.
Investors appeared to show scant response to the company’s wider loss of Rs 644 crore posted in its quarterly update after market close on Friday.
Paytm, which competes with Google’s payment app and Walmart Inc’s PhonePe in digital payments market, said it is on track to achieve operational profitability by September 2023.
“The notable print in the results was a sharply increased gross margin print in payments business resulting in expansion in contribution margins to 13bps,” J P Morgan analysts said in a note on Monday.
Processing charges of the company, backed by China’s Ant Group and Japan’s SoftBank Group Corp, fell 10.4% to Rs 694 crore sequentially.
“The management clarified that it could negotiate better deals with their bank partners, and rationalised certain low margin online merchant accounts that resulted in lower payment processing charges,” Macquarie analysts said in a note.
Shares of the company were up 6% at Rs 830.5, as of 0648 GMT.

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