Paytm’s loss increased to Rs 474 crore, the brokerage firm reduced the share target to Rs 1240
Another bad news has come from Paytm. Its parent company One 97 Communications has said that its consolidated loss has increased to Rs 474 crore in the quarter ended September. This loss was Rs 437 crore in the same quarter a year ago. However, an increase of 64 percent has been registered in the income (revenue) of the company.
On the other hand, brokerage firm JM Financial Institutional has cut the target price of Paytm. JM Financial has reduced the new target for Paytm stock from Rs 1,783 to Rs 1,240. The share of Paytm is trading at a decline of 17.16 percent since the listing.
Earnings up 64 percent in the second quarter
In the second quarter, the company’s working income grew by 64 percent year-on-year to Rs 1,090 crore. Non-UPI payment volume (GMV) growth of 52 per cent and growth of over 3 per cent in financial services business has contributed significantly to the company’s earnings.
The company’s contribution profit during the second quarter stood at Rs 260 crore. It has seen an increase of 6 times on a yearly basis. Looking at different segments, the company’s payment and financial services segment has earned Rs 842.6 crore. During this period, it has seen a growth of 69 percent on an annual basis, which was Rs 497.8 crore in the same quarter last year.
Clound and corpus service income also increased
In the second quarter, the company’s Clound and Cormus Services revenue grew by 47 per cent year-on-year to Rs 243.8 crore from Rs 166 crore. The company’s total expenses during the period stood at Rs 825.7 crore as against Rs 626 crore, up 32 per cent year-on-year.
Significantly, after a disappointing listing on the stock exchange, the shares of One 97 Communications saw a decline for 2 consecutive days. Then after that it saw an increase for 3 consecutive days. In yesterday’s trade, the stock closed at Rs 1,782.60, down by Rs 16.15 (0.90 per cent) on the NSE.
