- Date : 07/02/2023
- Read: 2 mins
One97 Communication announces its results for the quarter that ended in December 2022.
Paytm's parent company One97 Communication announced its December quarter numbers on Friday and has become profitable at EBITDA. Investors are happy, and the stock traded at Rs. 560.75, higher by 7% on Monday. Its share has decreased by 42% in the last year and 64.09% since its inception.
Also Read: Long-term perspective on Paytm stock. Should you buy, sell, or hold?
Rise In Revenue
The company reported a growth of 42% in the December quarter. Its estimated revenue was Rs. 2068 crores, and the numbers align with it. It can be attributed to commerce business momentum, increased loan disbursements, and more merchant subscriptions.
Contribution P&L
The company's contribution profit rose to Rs. 1,028 crores by 131% YoY in the December quarter. Net loss reduced from Rs. 779 crores last year to Rs. 392 crores. Analysts expected an Rs. 571 crore loss for the quarter.
EBITDA Before ESOP
After achieving operating profitability before guidance, the company announced an Rs. 31 crore EBITDA. Its margin rose to 2% of revenues than 27% YoT because of contribution profit and sustained improvement.
Also Read: India's top 10 wallets and UPIs.
Disbursed Loans
The company disbursed total loans of Rs. 9,958 crores, 378% growth YoY. 8.1 million people borrowed as of December last year. It has added 1.4 million fresh borrowers this quarter. The company gets massive lifecycle and upsell benefits with a growing lending base.
Payments Revenue
The company's payment revenue grew by 21% YoY. It stood at Rs. 1,197. The company did not have any UPI incentive this year.
Other Financial Services
Revenue grew to Rs. 446 crores by 257% YoY. It accounted for 22% of total revenues, higher from 9% YoY. It helped increase the contribution profit as the business has a higher margin.
The company has reduced its revenue estimates for FY23E-25E by around 3% because of its shift towards cloud and UPI revenues. However, we can see an increase in their EBITDA. Experts continue to give it a buy rating as it is among India's largest and most profitable platforms in fintech. Brokerages are positive and have given it a buy rating.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
Paytm's parent company One97 Communication announced its December quarter numbers on Friday and has become profitable at EBITDA. Investors are happy, and the stock traded at Rs. 560.75, higher by 7% on Monday. Its share has decreased by 42% in the last year and 64.09% since its inception.
Also Read: Long-term perspective on Paytm stock. Should you buy, sell, or hold?
Rise In Revenue
The company reported a growth of 42% in the December quarter. Its estimated revenue was Rs. 2068 crores, and the numbers align with it. It can be attributed to commerce business momentum, increased loan disbursements, and more merchant subscriptions.
Contribution P&L
The company's contribution profit rose to Rs. 1,028 crores by 131% YoY in the December quarter. Net loss reduced from Rs. 779 crores last year to Rs. 392 crores. Analysts expected an Rs. 571 crore loss for the quarter.
EBITDA Before ESOP
After achieving operating profitability before guidance, the company announced an Rs. 31 crore EBITDA. Its margin rose to 2% of revenues than 27% YoT because of contribution profit and sustained improvement.
Also Read: India's top 10 wallets and UPIs.
Disbursed Loans
The company disbursed total loans of Rs. 9,958 crores, 378% growth YoY. 8.1 million people borrowed as of December last year. It has added 1.4 million fresh borrowers this quarter. The company gets massive lifecycle and upsell benefits with a growing lending base.
Payments Revenue
The company's payment revenue grew by 21% YoY. It stood at Rs. 1,197. The company did not have any UPI incentive this year.
Other Financial Services
Revenue grew to Rs. 446 crores by 257% YoY. It accounted for 22% of total revenues, higher from 9% YoY. It helped increase the contribution profit as the business has a higher margin.
The company has reduced its revenue estimates for FY23E-25E by around 3% because of its shift towards cloud and UPI revenues. However, we can see an increase in their EBITDA. Experts continue to give it a buy rating as it is among India's largest and most profitable platforms in fintech. Brokerages are positive and have given it a buy rating.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
