Paytm spurts ~6% on robust Q1FY23 operational numbers

8 Aug 2022 , 12:52 PM

One97 Communication Limited announced its results for the quarter ended June 30, 2022, and reported better than expected performance during the quarter.

Paytm’s counter raised nearly 6% so far in today’s trade at Rs833.40 against the previous close of Rs784.30 on NSE.

The company stated that its net loss widened to Rs644.40 crore in Q1FY23 against a loss of Rs380.20 crore in the previous corresponding quarter.

The company reported an 89% y-o-y jump in its Net profit at Rs1,679.60 crore in Q1FY23, on the back of strong monetization in payments, device subscriptions, and accelerated adoption of high-margin businesses.

The company reported an EBITDA of Rs275 crore, registering an upside of Rs93 crore over the last quarter. Consequently, the company’s contribution profit increased by 197% year-on-year to Rs726 crore, resulting in an increase in contribution margin to 43% of revenues from 35% in Q4FY22.

Paytm further outlined that it is now firmly on the path of achieving operating profitability driven by better cost leverage.

Paytm’s shares have recovered widely over the last three months from a 52-week low of Rs511. However, it is still 62% lower than its issue price of Rs2,150.

Company’s loan disbursals witnessed a 779% y-o-y growth to Rs5,554 crore.