Paytm shares are set to grab attention in Tuesday’s trading session as the company, One97 Communications, will release its Q2 results for the July-September period.
Analysts are predicting Paytm to report higher revenue growth for this quarter, but they expect losses to increase as well.
Key Points:
- Wider Losses: Paytm’s losses for Q2 are likely to grow to ₹660 crore, up from ₹290 crore in the same period last year.
- Revenue Growth: The company’s revenue from operations is expected to rise by 16% year-on-year.
- Quarter-on-Quarter Improvement: While year-on-year losses are set to widen, losses are expected to decrease from ₹838 crore in the previous June quarter, thanks to strong growth in its payment services to merchants and financial services.
- Revenue Increase: Revenues could go up by 8% from the last quarter.
Motilal Oswal has stated that Paytm’s operating profitability is likely to improve, with a focus on disbursements, gross merchandise value (GMV), and any possible effects of RBI notifications.
Segment-wise, YES Securities is forecasting a slight 2% drop in payment services to consumers, but a 10% growth in both payment services to merchants and the financial services segment. This could lead to an 8% rise in Paytm’s overall operational revenue compared to the previous quarter.
In the June quarter, Paytm had reported wider losses of ₹838 crore, up from ₹357 crore in the same quarter of last year. Analysts remain cautiously optimistic about improvements in revenue, but losses will be closely monitored.
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