Paytm share price opened 2% higher at INR 789.50 a piece, as compared to the previous close of INR 773.90
The fintech major’s net loss narrowed over 43% to INR 222 Cr in the December quarter (Q3) of the financial year 2023-24 (FY24)
Paytm’s operating revenue surged 38% to INR 2,850 Cr in the reported quarter from INR 2,062 Cr in Q3 FY23
Shares of One97 Communications Limited, the parent entity of fintech major Paytm, gained over 3% in early deals on the BSE on Saturday (January 20), a day after the company released its financial results for the third quarter (Q3) of FY24.
Paytm
share price opened 2% higher at INR 789.50 a piece against the previous close of INR 773.90 and soon rose about 3% to the level of INR 797.70.
The fintech major’s net loss narrowed by 43% to INR 222 Cr in Q3 FY24 from INR 392 Cr during the corresponding period last fiscal.
Paytm’s operating revenue surged 38% to INR 2,850 Cr in the reported quarter from INR 2,062 Cr in Q3 FY23, largely due to a sharp jump in revenue from payment services to merchants.
Meanwhile, brokerage firm CLSA has upgraded One 97 Communications Ltd., to a “buy” from its earlier rating of “outperform,” after the company’s quarterly results. The brokerage has also raised its price target on the stock to INR 960 from INR 925.
CLSA said that the company is increasing its diversification efforts following a reduction in its buy now pay later (BNPL) business. Furthermore, it anticipates further diversification in the upcoming March quarter.
Last month, Paytm said it would scale down its focus on small-ticket loans of less than INR 50K, which predominantly comprise its postpaid loan business.
In Q3 quarterly results, Paytm said its revenue growth was driven by acceleration in gross merchandise value (GMV) growth, higher device addition, and growth in the financial services business. This was partly boosted by the timing of the festive seasons as online sales for the festive season were in Q3 this year, it added.
Payments and financial services continued to contribute the biggest portion to the fintech giant’s overall sales revenue. Revenue from the segment jumped 43% to INR 2,285 Cr in Q3 FY23 from INR 1,599 in the corresponding period of last fiscal.
In that, payment services to merchants surged 69% year-on-year (YoY) to INR 1,081 Cr, while payment services to consumers only saw a 17% surge YoY to INR 598 Cr.
