Paytm gains after loan disbursal jumps 365% YoY in Q3

One 97 Communications (Paytm) rose 2.54% to Rs 1187.35 after the company said that it recorded 'stellar growth' in Q3 December 2021, as its lending business 'scales rapidly'.

Paytm's loan disbursal volume shot up 401% year-on-year to 4.4 million in the October-December period compared with the same quarter in the previous year. The value of loans disbursed through its platform during the quarter was Rs 2180 crore (run-rate of $1 .2 billion), an increase of 365% y-o-y.

The company said it saw a stellar growth in each of the lending products, i.e. Paytm postpaid (buy-now-pay-later), personal loans and merchant loans.

Paytm added that its gross merchandise value (GMV) grew 123% year-on-year to Rs 250,100 crores during the December quarter.

The firm added that its monthly transacting users (MTU) showed consistent growth in this fiscal, with 64.4 million average MTUs during the period under review, marking a growth of 37% year-on-year.

The total number of devices deployed across its merchant base has increased from 0.9 million as on 30 June 2021 to approximately 1.3 million as on 30 September 2021 to approximately 2.0 million as on 31 December 2021.

Sequentially, the company's loan disbursal volume jumped 73%. Its gross merchandise value for Q3 was up 28% QoQ. Average monthly transacting users rose 12.2% QoQ. The firm's device deployments rose 54% QoQ.

Shares of Paytm on Monday tumbled 6.01% to settle at Rs 1157.90 on the BSE. It slumped 13.56% in the past five trading sessions.

Selling emerged after a foreign brokerage reportedly initiated coverage on the scrip with an 'Underperform' rating and a price target of Rs 900. The brokerage said that it sees "no sign of headwinds abating".

Earlier this month, insurance regulator IRDAI rejected Paytm's proposed buyout of general insurance company RahejaQBE. The rejection is likely to hamper investment plans of several domestic and multinational insurance companies.

The stock entered the bourses on 18 November 2021. It was listed at Rs 1955, a discount of 9.07% compared with the initial public offer (IPO) price of Rs 2150. The counter has declined nearly 45% from its IPO price.

The IPO of Paytm was subscribed 1.89 times. The issue opened for bidding on 8 November and it closed on 10 November. The price band of the IPO was fixed at Rs 2080 to Rs 2150 per share.

Paytm is one the largest payments platform in India based on the number of consumers, number of merchants, number of transactions and revenue ended March 2021. The company launched Paytm in 2009, as a mobile-first digital payments platform to enable cashless payments for customers giving them the power to make payments from their mobile phones. It started with bill payments and mobile top-ups as the first use cases, and Paytm Wallet as the first Paytm Payment Instrument.

The company reported consolidated net loss of Rs 473.50 crore in Q2 FY22, higher than net loss of Rs 436.70 crore in Q2 FY21. Net sales jumped 63.64% to Rs 1086.40 crore in Q2 FY22 over Q2 FY21. Pre-tax loss stood at Rs 471.50 crore in Q2 FY22, higher than pre-tax loss of Rs 428.30 crore in Q2 FY21. Revenue growth was driven by 52% growth in non-UPI payment volumes (GMV) and more than three times growth in financial services and other revenue.

Powered by Capital Market - Live News