BusinessPaytm Q1 preview: Paytm earnings growth likely to hit 90% year-on-year basis...

Paytm Q1 preview: Paytm earnings growth likely to hit 90% year-on-year basis – Goldman Sachs

Paytm Q1 preview: Analyst estimates the company to turn profitable by the end of FY 2024

Paytm Q1 preview: Paytm (One97 Communications) results are out today. Market experts expect the company’s revenue to double on a year-on-year basis in the April-June 2022 quarter. Paytm was listed on 18 November 2021. But the company is yet to turn profitable. Market experts believe that the company’s performance may improve in the quarter ended June 30, 2022. Paytm CEO and Founder Vijay Shekhar Sharma had recently said in aninterview that he would no longer focus on profit but on growth.

Analysts expect the company to make profits by the end of the financial year 2024. There has been a constant focus on the shares of Paytm since its listing last year. On Thursday, the shares of Paytm closed at Rs 805.90 with a gain of 0.17%.

How can Paytm results stay?

Goldman Sachs has said in Paytm’s result preview note that for the quarter ending June 30, 2022, Paytm’s income growth is likely to be 90% on a year-onyear basis. During this period, the company’s financial services revenue can see a growth of 305% on a yearly basis. Similarly, the company’s payment service revenue is expected to grow at 74% year-on-year during this period.

Similarly, Yes Securities says that in the April-June 2022 quarter, Paytm revenue can increase by more than double. Yes Securities believes that on a quarter-on-quarter basis, the company’s revenue from operations during this period can see a growth of 17.5 percent. At the same time, it can see an increase of 103.3 percent on an annual basis.

Effect of RBI’s ban on Paytm Payments Bank

Analysts at Goldman Sachs say that as of June 2022, the number of monthly transacting users of Paytm has been 76 million. It stood at 7 crores in February 2022. This indicates that the ban on Paytm Payments Bank by the RBI in March has had a very minor takeaway on user acquisition. This will ease the worries of investors.

Read Also | Paytm shares climb 12% in last 5 days, should you invest in it?

Yes Securities and Goldman Sachs expect that Paytm’s loan disbursement will see good strength in the first quarter. In the April-June quarter, Paytm’s loan disbursement has seen a growth of 56 per cent on a quarterly basis and has stood at Rs 56 crore in this period.

Goldman Sachs expects Paytm’s revenue to stand at Rs 1,690 crore in the first quarter and its adjusted EBITDA margin at -19 per cent. While the adjusted Ebitda may remain at Rs-320 crore. Similarly, Yes Securities estimates that Paytm’s revenue may remain at Rs 1,810.6 crore and EBITDA at Rs -720.7 crore in the first quarter. While the company may have a net loss of Rs 721.9 crore during this period.

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