Bengaluru: Shares of digital payments firm Paytm The company’s parent firm One97 Communications jumped more than 6% on Monday, its highest level in nearly six months, after reporting an 89% increase in its quarterly revenue.
The higher number of monthly users, additional payment instruments and greater distribution of loans boosted the company’s revenue to Rs 1,680 crore ($211.16 million) from Rs 891 crore in the previous year.
Investors reacted poorly to the company’s massive loss of Rs 644 crore in the company’s quarterly update after the market closed on Friday.
Paytm, which competes with Google’s payments app and Walmart Inc’s PhonePe in the digital payments market, said it is on track to achieve operational profitability by September 2023.
“Notable among the results was a sharply increased gross margin print in the print payments business, resulting in a 13 bps expansion in contribution margin,” analysts at JPMorgan said in a note on Monday.
The processing fee of the company backed by China’s Ant Group and Japan’s SoftBank Group Corp fell 10.4% sequentially to Rs 694 crore.
Macquarie analysts said in a note, “Management clarified that it can negotiate better deals with its bank partners, and rationalize certain low-margin online merchant accounts, resulting in lower payment processing fees.” Is.”
Shares of the company were up 6% at Rs 830.5 as of 0648 GMT.
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