One97 Communications Ltd (Paytm) on Wednesday said its merchant payment volume (GMV) for June quarter jumped 37 per cent YoY to Rs 4.05 lakh crore, adding that it disbursed loans worth Rs Rs 14,845 crore through Paytm platform, up 167 per cent YoY. A total of 1.28 crore loans, up 51 per cent YoY, were distributed during the quarter, it said in a BSE filing. Besides, Paytm deployed 79 lakh devices for the quarter.
Paytm said its focus over the past few quarters continues to be on payment volumes that generate profitability for us, either through net payments margin or from direct upsell potential.
The month-on-month loan distribution trend in June reflects the higher disbursal in May which included pent-up demand for merchant loans from April due to one of partners not disbursing due to upgrading of systems. For June alone, loan disbursements stood at Rs 5,227 crore.
Paytm said it currently has 7 active lending partners and that it aims to onboard 3-4 partners in FY24. On June 30, it announced loan distribution partnership with Shriram Finance.
Paytm said its consumer base continued to expand, with average monthly transacting users (MTU) at 9.2 crore for quarter (average for three months ended June 30), up 23 per cent YoY
"Our leadership in payment monetisation continues, as subscription for payment devices like Soundbox and POS machines continue to see increased acceptance by merchants. Number of merchants paying subscription for payment devices has reached 79 lakh as of June 2023, an increase of 4 lakh devices in the month and 11 lakh devices in the quarter," Paytm said.
Paytm said 79 lakh merchants are now paying subscription for payment devices, an increase of 11 lakh devices in the quarter. With subscription as a service model, the strong adoption of devices drives subscription revenues and higher payment volumes, while increasing the funnel for merchant loan distribution, Paytm said.
Earlier this month, Motilal Oswal Securities revised its share price target on on the stock to Rs 1,050, as the domestic brokerage felt that the constant improvement in contribution margin and operating leverage will continue to drive Paytm’s operating profitability.
Motilal said Paytm is on track to report Ebitda breakeven in 2HFY25 after reporting adjusted Ebitda breakeven, almost a year ahead of its guidance. It has raised its FY25 gross merchandise value (GMV) and disbursement estimates for FY25 by 5 per cent and 21 per cent. The brokerage expects the mix of financial revenue to increase to 32 per cent by FY25E from 19 per cent in FY23. On June 29, BofA Securities suggested a price target of Rs 1,020 on the Paytm stock.
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