Paytm Q2 LIVE Updates: Cash stability of the fintech agency rose to ₹8,754 crore as of quarter ending September 2023, as in comparison with ₹8,367 Cr as of quarter ending June 2023. The firm claims of including money balances for 3 consecutive quarters, adjusted for ₹1,056 Cr of funds used for buyback (together with buyback tax and different transaction prices) in Q3 and This autumn of FY 2023.

Paytm Q2 LIVE: The variety of Merchant Loans distributed grew 130% YoY in Q2 FY 2024, whereas the worth of Merchant Loans grew 171% YoY to ₹3,275 Cr. Proportion of loans distributed to a subscription service provider stays better than 85% this quarter. Average ticket measurement is ~ ₹180,000 with common tenure of ~13 months. 

During the September quarter, service provider subscriptions of Paytm stood at 92 Lakh, by registering a development of 44 Lakh YoY and 14 Lakh QoQ.

Paytm Q2 LIVE Updates: The firm witnessed a significant rise in its mortgage disbursement within the quarter underneath evaluate. Loans Distributed by Paytm elevated by 122% YoY to ₹16,211 crore. 

Paytm LIVE Updates: Contribution margin elevated to 57%, growth of 13 % level YoY, as a result of improve in web fee margin and development in mortgage distribution enterprise.

Paytm Q2 LIVE Updates: Revenue from monetary providers and others up 64% YoY to ₹571 crore. Unique customers, who’ve taken mortgage by Paytm platform, reaches 1.18 Cr; Loan distribution. Company continues to scale with ₹16,211 Cr of mortgage disbursement (up 122% YoY).

Paytm LIVE Updates: Revenue from funds enterprise up 28% YoY to ₹1,524 Cr. Net fee margin up 60% YoY to ₹707 Cr; GMV up 41% YoY to ₹4.5 Lakh Cr. Payment processing margin is on the larger finish of 7-9bps vary (with out UPI incentive). Merchant paying subscription for units has reached 92 Lakh as of September 2023, a rise of 44 Lakh YoY and 14 Lakh QoQ

Paytm Q2 LIVE Updates: Net lack of the corporate narrows right down to ₹290.05 crore in September quarter towards ₹571.1 crore within the 12 months in the past interval.

Paytm Q2 Live Updates: Paytm reported a 32% rise in its income to ₹2518.5 crore within the September quarter towards ₹1914 crore within the 12 months in the past interval.

Paytm agency is wanting so as to add extra lending companions in FY24. The transfer will assist the corporate in absorbing the move that it’s able to originating by way of its platform, in line with Motilal Oswal.

According to brokerage agency Motilal Oswal, PayTM is predicted to witness an approximate 35% rise in its income from operations within the September quarter. It is prone to come round ₹2,500 crore. 

“The profitability of Paytm’s core fee enterprise is additional enhanced by its monetary providers division, which advantages from inherently larger contribution margin,” stated the brokerage.

Paytm stated it stays targeted on the portfolio efficiency of its lending companions, and development could also be subdued till the business outlook improves. However, it added that with its subscription-as-a-service mannequin, the sturdy adoption of units drives subscription revenues and better fee volumes, whereas growing the funnel for its service provider mortgage distribution.

Domestic fairness benchmarks Nifty 50 and the Sensex resulted in damaging territory for the third consecutive session on Friday, October 20, as hovering US Treasury yields, issues about potential rate of interest hikes by the US Fed, and the continued conflict between Israel and Hamas saved traders on edge. Nifty 50 at the moment closed at 19,542.65, down 82 factors, or 0.42 per cent whereas the Sensex ended the day at 65,397.62, down 232 factors, or 0.35 per cent.

Paytm share worth has witnessed sturdy shopping for curiosity after making life-time low of ₹438.35 apiece on NSE. But, Goldman Sachs believes that Paytm share worth has potential to proceed uptrend. The international brokerage has predicted that paytm share worth might go as much as Rs1,250 apiece in long run. The then overwhelmed down inventory bottomed out at its document low and witnessed sturdy backside fishing by worth pickers.

Paytm’s income for the September quarter is prone to leap 35 per cent from ₹1,914 crore reported within the corresponding quarter final fiscal, in line with a mean estimate of three brokerages. The continued momentum in lending and funds will drive income development. 

The firm’s mortgage distribution enterprise (in partnership with lender companions) elevated 137 per cent YoY, with disbursements of ₹10,710 crore in July-August 2023, The variety of loans additionally elevated 47 per cent YoY to eight.8 million in July-August 2023.

Paytm reported a 20 per cent YoY development in common month-to-month transacting customers at 94 million within the July-August interval from 79 million in the identical interval final 12 months. Paytm disbursed loans price ₹5,517 crore by its lending platform in August 2023, the corporate stated in a press launch.

Ahead of the announcement of Q2 outcomes, shares of Paytm settled 1.93 per cent larger at ₹987.35 apiece on the BSE.

Strong development outlook, improved income combine and working leverage ought to drive EBITDA margins (15% by FY26E) on a multiyear expansionary path. In the following 4 quarters, Paytm will flip worthwhile and be part of the worldwide record of enormous fintechs which get pleasure from sturdy development (>30%), double-digit margins and wholesome profitability. However, its valuations at 3.6x EV/income stay engaging in comparison with the 5-6x a number of for this group. As Paytm witnesses sturdy development and regular margin growth, we anticipate re-rating to speed up. We provoke at Buy with a goal worth of ₹1,300, Jefferies stated.

In 2 years, Paytm has change into the third largest non-bank consumption credit score platform (by disbursals) and 2nd largest such acquisition platform with ~6mn new credit score buyer additions in FY23. At system degree, Paytm’s market share in unsecured retail credit score disbursals is now ~2.8% and given the sturdy outlook, we anticipate it to extend to ~6% (by FY26E) led by ~22% mkt share in BNPL (vs ~12% presently) and ~2% in private loans (Vs 1.3% presently). Within SME, Paytm’s share in micro SME section (<Rs1mn loans) will improve to ~7% (vs 3.5% presently), in line with Jefferies.

Paytm’s giant two-sided funds community gives the underlying rails for conversion of a small-ticket digital spend right into a credit score product at no incremental value. Similarly, on the service provider aspect, the QR code / Soundbox permits assortment of EMI from the day by day receipts at little to no assortment value. This functionality to create credit score merchandise round funds is vital for exponential (~10x in 2yrs) ramp up in credit score disbursals on the platform, Jefferies stated.

The firm deployed 8.7 million units as of August 2023, a rise of 4.2 million units year-on-year. “With our subscription-as-a-service mannequin, the sturdy adoption of units drives subscription revenues and better fee volumes, whereas growing the funnel for our service provider mortgage distribution,” stated the corporate.

Paytm stated that over the previous a number of quarters, it deliberate to calibrate development to additional tighten credit score high quality of loans distributed on its platform. The firm has been in a position to efficiently exhibit bettering credit score high quality for Paytm Postpaid, the place the ECL (anticipated credit score loss) has decreased to a spread of 0.65% – 0.85% from a spread of 0.75% – 1.00% in This autumn of FY23.

In subsequent 4 quarters, Paytm will flip worthwhile and be amongst the few giant worthwhile fintechs globally that get pleasure from sturdy development (>30%), double-digit EBITDA margins and secure profitability. However, its valuations at 3.6x FY25 EV/income stay at a ~40% low cost to this group. We use DCF valuation methodology with development assumptions of near-term 27%, long-term 17% and terminal 8%. At our valuation, we get implied EV/income of 4.6x and EV/adj. EBITDA of ~37x (Sep’25). Using SOTP (for stake in associates), we arrive at a PT of Rs1,300. Key dangers are a) asset high quality deterioration impacting credit score enterprise development, b) provide strain from PE promoting, c) regulatory threat, Jefferies stated.

One97 Communications Ltd, which runs the model Paytm, reported a 20% year-on-year (YoY) development in common month-to-month transacting customers at 94 million within the July-August interval from 79 million in the identical interval final 12 months. In August 2023, Paytm disbursed loans price ₹5,517 crore ($667 million) by its lending platform, the corporate stated in a press launch. Read here

The preliminary public providing (IPO) of Paytm was launched in November 2021 at a worth band of ₹2,080 to ₹2,150 per fairness share. The ebook construct challenge listed on BSE and NSE at close to 9% low cost as Paytm share worth opened on NSE at ₹1,950 apiece ranges and it listed on BSE at ₹1,955 per share ranges. The inventory went additional deep and proceed to slip for close to one 12 months after itemizing. It bottomed out on the finish of November 2022 after making its life-time low of ₹438.35 apiece, round 80% cent under its higher worth band of ₹2,150 per fairness share. Even if Paytm share worth meets the given ₹1,250 per share goal given by Goldman Sachs, it might be close to 40% under its higher worth band of ₹2,150 apiece.

In its upside state of affairs, Jefferies has a goal worth of ₹1,600 per share for Paytm. It expects GMV development of 40% CAGR over FY23-26E; income CAGR of 35% with contribution margin growth of +800 bps to ~62%. The brokerage expects adjusted EBITDA margins increasing to 24%.

Paytm’s lending companions stay in charge of threat underwriting thresholds and given the brief tenor of loans, are collectively creating a big base (>10 mn) of credit-tested customers. Delinquency developments have improved in BNPL (largest product) the place the share of repeat customers is ~65%. As portfolio classic grows, rising share of credit-tested customers in disbursals (from ~50% presently) will assist management asset high quality outcomes, Jefferies stated.

Paytm founder Vijay Shekhar Sharma shopping for 10.30% stake within the firm from Antfin resulted in a Chinese entity ceasing to be largest shareholder within the firm, which analysts consider to be constructive for Paytm’s fundamentals and in addition take away overhang on the inventory.

Analysts at BofA Securities famous {that a} Chinese shareholder ceasing to be the biggest shareholder, would additionally directionally be constructive for the corporate fundamentals.

“We think about this announcement to be constructive because it removes overhang on the inventory from the danger that Antfin in future might look to cut back its stake resulting in extra provide. Furthermore, Sharma shopping for the stake at Friday’s shut signifies his confidence within the story with a “pores and skin within the recreation” approach,” BofA stated in a report.

This occasion additionally reduces threat that another strategic investor coming who would have a significant stake much like that of Sharma, it added. Moreover, analysts consider a Chinese shareholder (Antfin) ceasing to be the biggest shareholder, would additionally directionally be constructive for the corporate fundamentals. Read here

Paytm founder Vijay Shekhar Sharma in August bought a ten.30% stake within the firm from Antfin (Netherlands) Holding BV. Antfin transferred 6.53 crore shares of Paytm to Resilient Asset Management B.V., an entity through which Sharma owns the whole 100% stake. With this, Sharma elevated his holding within the firm to 19.42%, turning into the biggest shareholder within the fintech large, whereas Antfin’s stake dropped to 13.5%. Antfin, an affiliate of China’s Ant Group Co, ceased to be the biggest shareholder in Paytm. Read here

Paytm’s contribution income will outpace revenues as margins enhance by 300 bps to ~57%, led by rising share of monetary providers in income combine, and higher core funds margins as share of credit-linked spends in non-UPI GMV will increase, Jefferies stated.

Paytm share worth hit a 52-week excessive on Friday forward of the discharge of September quarter earnings later at the moment. The shares of One 97 Communications, the guardian firm of Paytm, opened at ₹972.95 apiece, up by 0.43% than earlier shut of ₹968.70 apiece on the BSE.

Paytm shares gained momentum throughout the day and rallied as a lot as 3.05% to hit a 52-week excessive of ₹998.30 apiece. The inventory was final buying and selling 1.52% larger at ₹983.45 apiece.

Expect working profitability to extend, pushed by enchancment in contribution margin & working leverage. Healthy development doubtless in whole income and regular development seen in mortgage disbursements and GMV. Expect the variety of subscription fee units to indicate a robust traction, Motilal Oswal stated.

The brokerage has a ‘Buy’ ranking on the inventory with a goal worth of ₹1,000 per share.

Global brokerage Goldman Sachs estimates 30 per cent YoY income development for Paytm within the September quarter on the larger finish of its India web protection, with a 6.3 per cent earnings earlier than curiosity, tax, depreciation, and amortization (EBITDA) margin.

“We see upside to each Paytm earnings (we’re 6%-11% forward of Visible Alpha consensus on FY25/FY26 EBITDA) and multiples (GS TP implied a number of of 47x FY26 P/E), as we anticipate continued momentum in lending and funds, with sturdy working leverage within the enterprise mannequin. In addition, decision of excellent regulatory points (buyer onboarding ban on Paytm Payments Bank or on-line service provider onboarding ban), and/or inclusion of a financial institution as a lending accomplice might act as catalysts for Paytm,” the brokerage stated.

Paytm share worth has witnessed sturdy shopping for curiosity after making life-time low of ₹438.35 apiece on NSE. The then overwhelmed down inventory bottomed out at its document low and witnessed sturdy backside fishing by worth pickers. Paytm shares have rallied greater than 16% within the final three months and are up over 86% year-to-date (YTD). The inventory is up over 56% within the final one 12 months.

Goldman Sachs believes that Paytm share worth has potential to proceed uptrend. The international brokerage has predicted that paytm share worth might go as much as ₹1250 apiece in the long run.

On causes for being bullish on Paytm shares, Goldman Sachs report says, “Paytm’s operating metrics have been surprising positively, and we are further raising our FY24-26E EBITDA estimates by 2-5%, with our target price moving to ₹1,250 (was ₹1,200). We forecast 30% YoY revenue growth for Paytm in 2QFY24 (Sep ’23; results on 20 October), at the higher end of our India internet coverage, with a 6.3% EBITDA margin (excl. ESOP; was 3.6% in 1Q). At US$200 mn in FY25 EBITDA, we continue to expect Paytm to be the most profitable company within India internet, and see the company turning net income positive in FY25 as a catalyst for the stock.” Read here

In 2 years, Paytm’s revenues have jumped 3x, gross margins surged to 54% (from 13%) and positioned the corporate on a path to profitability

With simply 5% consumer penetration, Paytm’s mortgage disbursals have surged 10x to over $8 billion. In funds, revenues expanded round 2.5x with ramp-up in service provider subscription enterprise and margins jumped 20pp, led by business tailwinds and administration shedding unprofitable traces. 

Fintech main Paytm is predicted to enter the worldwide record of enormous worthwhile fintechs in 4 quarters and its share worth is but to mirror the corporate’s modified profile, in line with international brokerage home Jefferies.

Jefferies has initiated its protection on One 97 Communications, the guardian firm of Paytm, with a ‘Buy’ ranking and a goal worth of ₹1,300 per share, implying an upside of over 37% from Wednesday’s closing worth.

“In subsequent 4 quarters, Paytm will flip worthwhile and be amongst the few giant worthwhile fintechs globally that get pleasure from sturdy development (>30%), double-digit EBITDA margins and secure profitability. However, its valuations at 3.6x FY25 EV/income stay at a 40% low cost to this group,” Jefferies stated. Read here

One97 Communications – the operator and guardian firm of Paytm will announce its July-September quarter outcomes for fiscal 2023-24 (Q2FY24) on Friday, October 20. The fintech main is predicted to report sturdy income development pushed by excessive mortgage disbursals, in line with estimates by analysts and main brokerage homes. Read full report here

Paytm reported a 20% YoY development in common month-to-month transacting customers at 94 million within the July-August interval from 79 million in the identical interval final 12 months. Paytm disbursed loans price ₹5,517 crore by its lending platform in August 2023, the corporate stated.

The firm’s service provider fee volumes (GMV) elevated by 43% year-on-year to ₹3 trillion ($36.3 billion) in July-August 2023, up from ₹2.1 trillion in July-August 2022. Paytm continued to see a rise in GMV of non-UPI devices like EMI and playing cards.

The firm’s mortgage distribution enterprise (in partnership with lender companions) elevated 137 per cent YoY, with disbursements of ₹10,710 crore in July-August 2023, The variety of loans additionally elevated 47 per cent YoY to eight.8 million in July-August 2023. Read here

The gross merchandise worth (GMV) can also be anticipated to rise additional within the second quarter of present fiscal, after registering a development of 37% year-on-year (YoY) to ₹4.05 lakh crore within the previous April-June quarter. 

GMV is prone to rise greater than 45% YoY and the full worth of mortgage disbursed might are available in above 130%. “We elevate our FY25E GMV and disbursement estimates by 5 per cent and 21 per cent, respectively, and estimate the combo of Financial income to extend to 32 per cent by FY25E from 19 per cent in FY23,” Motilal Oswal stated.

Domestic brokerage agency Motilal Oswal estimates that the fintech’s income from operations within the September quarter is prone to see a development of 35% year-on-year to round ₹2,600 crore. Net losses of the corporate is prone to slender by over 51% to ₹280 crore.

The profitability of Paytm’s core fee enterprise is additional enhanced by its monetary providers division, which advantages from inherently larger contribution margin, stated the brokerage.

Paytm is wanting so as to add extra lending companions in FY24, which can assist take in the move that it’s able to originating by way of its platform. “We consider that fixed enchancment in contribution margin and working leverage will proceed to drive Paytm’s working profitability,” stated Motilal Oswal.

A complete of 38 Dalal Street listed corporations are going to declare their Q2 incomes for the monetary 12 months 2023-24. Those 38 listed corporations embrace JSW Steel, JSW Energy, Paytm, Hindustan Zinc, Central Bank of India, L&T Finance Holdings, Poonawalla Fincorp, Laurus Labs, Tejas Networks, Atul, Sunteck Realty, Just Dial, Butterfly Gandhimathi Appliances, and so on. Read full report here

Paytm is predicted to report sturdy income development pushed by excessive mortgage disbursals, in line with estimates by analysts and main brokerage homes. The fintech main’s income in Q2FY24 might rise 35% YoY, whereas its web losses are prone to slender down. Operating profitability is prone to improve with regular development in mortgage disbursements.

One97 Communications, the guardian firm of fintech large Paytm, will announce its monetary outcomes for the July-September quarter of fiscal 2023-24 (Q2FY24) at the moment, 20 October 2023.