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Paytm Q1 results today: Here’s what analysts expect from One 97 Communications’ financial performance
Stock Market Today: One 97 Communications (Paytm) share price has fallen over 40% since the end of January following the Reserve Bank of India’s action on its payments bank. One 97 Communications (Paytm) is expected to report a significant decline in revenues across its key segments during the quarter ending June 2024.
Yes Securities sees overall sequential decline in operating income of 32% through One 97 Communications (Paytm) during the first quarter as they expect payment services for consumers, merchants, financial services and others to decline sequentially.
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Yes Securities expects a 40% sequential decline in consumer payment services, a 35% sequential decline in merchant payment services and a 30% sequential decline in financial and other services.
Payment Processing Fees (PPC) revenues as a percentage of Payments are expected to be 55.5%, compared to 46% in Q4 FY24, primarily because it received UPI incentive in Q4 FY24.
Total Expenses (ex PPC) are expected to increase 7% sequentially, an improvement from a 12% decline in Q4FY24. Adjusted for ESOP cost and other expenses, Yes Securities arrives at an EBITDA margin of 60.4%, a sequential decline of 5,050 basis points
Motilal Oswal Financial Services Motilal Oswal Financial Services, Inc. also expects revenue from operations to decline 36% YoY to around ₹1490 Crore as contribution profit is also expected to decline 51% YoY to around ₹640 Crore during 1QFY25. Gross Merchandise Value is estimated by Motilal Oswal to decline 7% YoY in 1QFY25 to total ₹4.3 Trillion. Contribution margin is also pegged at 43%. They expect adjusted operating loss to be ₹490 Crore in 1QFY25. Motilal Oswal Financial Services currently has Neutral ratings on the stock.
However, One 97 Communications (Paytm), which is trading at ₹434, remains among the picks of StoxBox, which has given a target price of ₹449 with a stop loss of ₹398. According to Stoxbox, Paytm has a large engaged customer base and expects to breakeven on EBITDA by FY25. The stock, according to them, has shown potential trend reversal patterns on the technical charts recently, making it an attractive buy at current levels.
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An important factor for Motilal Oswal Financial Services to monitor is any additional impact of the RBI notification.
Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint. Investors are advised to consult with certified experts before making any investment decisions.
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