In early trade on Monday, shares of One 97 Communications (Paytm) climbed as much as 4% to a day’s high of Rs 574 after the fintech company reported quarterly results.
Paytm reported a 357% year-over-year (YoY) increase in loan disbursements to Rs 9,958 crore in the December quarter.
“The number of loans increased 117% year-over-year to 3.7 million for the month of December, and 137% year-over-year to 10.5 million cumulative loans for the three months ending in December 2022,” Paytm reported in a filing with the exchange today. The average number of monthly transacting users or MTU increased by 32% year-over-year to 85 million.
The total merchant GMV processed by our platform for the quarter ending in December 2022 totaled Rs 3.46 lakh crore, representing a 38% increase year-over-year. Paytm stated that its focus over the past few quarters has remained on payment volumes that generate profitability for the business, either through net payment margin or direct upsell potential.
“Our loan distribution business (in partnership with top lenders) continues to experience accelerated growth, with disbursements through our platform reaching Rs 3,665 crore in December, up 330% year-over-year,” the report stated.
Paytm stated that it continues to expand its focus on subscription services as a means of generating additional revenue streams beyond MDR. “As of December 2022, the number of merchants paying subscription fees for payment devices reached 5.8 million, an increase of 1 million devices from the previous quarter,” the report stated.
In the interim, Paytm Payments Bank has named Surinder Chawla as its managing director and chief executive officer. As head of branch banking at RBL Bank NSE 0.92%, Chawla was responsible for expanding the bank’s current account, savings account (CASA), fee revenue, and cross-selling channels.
The modern company’s shares are currently trading 73% below their IPO price of Rs 2,150. The stock was among those with the worst performance in 2022.
According to the average target price of eleven analysts, eight of whom have buy ratings, the upside potential is approximately 66%.
