 "Paytm shares volatile after posting Q3 results; Check out key details here")
One 97 Communications, parent company of Paytm, shares slipped 2.9 per cent in Monday's trade on BSE, logging an intraday low at Rs 873 per share. However, the stock took a u-turn and gained 1.9 per cent after few minutes of posting Q3 results.
Around 11:13 AM, Paytm share price was up 1.56 per cent at Rs 913.7 per share on BSE. In comparison, the BSE Sensex was up 0.39 per cent at 76,921.24. The market capitalisation of the company stood at Rs 58,251.2 crore. The 52-week high of the stock was at Rs 1,063 per share and the 52-week low was at Rs 310 per share.
The company reported its Q3 results during market hours on Monday. In its third quarter ended December 31, 2024, the company reported a net loss of Rs 208.3 crore as compared to Rs 219.8 crore a year ago. The company had reported a net profit in Q2 at Rs 928.3 crore.
Patym's revenue for the quarter under review stood at Rs 1,827.8 crore as compared to Rs 2,850.5 crore a year ago, down 35.9 per cent. On a quarter-on-quarter (Q-o-Q) basis the company's revenue is 10.1 per cent.
Further, as per the filing, the company's payment Services revenue (including other operating revenue) was Rs 1,059 crore, up 8 per cent Q-o-Q, led by an increase in gross merchandise value (GMV), and an increase in merchant subscriptions. No UPI incentive was received during the quarter as it usually gets paid in Q4 of the financial year.
Paytm's cash balance for the quarter under review was at Rs 12,850 crore, an increase of Rs 2,851 crore Q-o-Q, largely on account of PayPay stake sale and improvement in working capital.
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Going forward, the company expects calibrated growth in marketing costs and sales employee expenses as we invest in customer and merchant acquisition.
"Our employee costs (excluding ESOP) for 9M FY 2025 is lower by Rs 451 crore Y-o-Y, and will comfortably surpass our targeted annualised people cost savings of Rs 400 - 500 crore," the filing read.
Meanwhile, JM Financial has reinitiated coverage with a 'Buy' on Paytm for a target of Rs 1,250 per share.
"With headwinds behind, we forecast it to deliver 23 per cent revenue growth over FY25-30, with Earnings before interest, tax, depreciation and amortisation (Ebitda) margin of 20.7 per cent in FY30, driven by higher take-rates in credit distribution as well as payments and tight control on most cost line-items," the report read.
In the past one year, Paytm shares have gained 14.7 per cent against Sensex's rise of 7.2 per cent.