Paytm Shares Gain After Q3 Net Loss Narrows, Beats Estimates

Paytm posted a loss of Rs 392.1 crore in the third quarter, as compared to analysts' estimates of a Rs 529.4 crore loss.
<div class="paragraphs"><p>(Source: Company Website)</p></div>
(Source: Company Website)

Shares of One 97 Communications Ltd., the owner of fintech platform Paytm, gained after it narrowed its losses in the third quarter of fiscal 2023.

The company reported a loss of Rs 392.1 crore for the October-December quarter, as compared to Rs 571.5 crore in the preceding quarter. Analysts estimated a net loss of Rs 529.4 crore, according to Bloomberg.

One 97 Communications (Paytm) Q3 (Consolidated, QoQ)

  • Revenue up 8% at Rs 2,062 crore (Bloomberg estimate: Rs 2,120.43 crore)

  • Ebitda loss fell 38% at Rs 330.70 crore (Bloomberg estimate: Rs 493.75 crore loss)

  • Net loss contracted to Rs 392.1 crore (Bloomberg estimate: Rs 529.35 loss)

"While revenue was a minor miss on extended efforts to achieve optimisation in payment business unit; strong outperformance and improvement in operating performance reaffirms our belief that Paytm can not only generate strong top-line growth but also achieve robust profitability through operational efficiency," Dolat Capital said in its investor note.

The brokerage believes that Paytm can sustain or accelerate its current growth momentum.

Shares of the company gained as much as 7.81% intraday and closed 6.35% higher at Rs 558.3, while the benchmark Nifty 50 lost 0.5%. The total traded volume in the day was twice its 30-day average volume. The relative strength index stood at 55.

Out of the 12 analysts tracking the stock, eight maintained 'buy', three suggested 'hold' and only one recommended 'sell', according to data compiled by Bloomberg. The return potential of the stock is 60.8% over the next 12 months.

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Swastika Mukhopadhyay is a desk writer at BQ Prime, who...more
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