5 Takeaways from Paytm's Q4 Results

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

5 Takeaways from Paytm's Q4 Results

May 21, 2022

5 Takeaways from Paytms Q4 Results

Paytm's parent company One 97 Communications on Friday reported its March quarter results.

Probably the most popular stock these days, Paytm which was listed in November 2021 has been beaten down big time and eroded more than half of its value since listing.

This erosion comes on the back of various events like the Reserve Bank of India (RBI) barring the onboarding of new customers due to suspicious activities, high valuations, and more.

The sequence of events led to brokerages downgrading the stock, and rightly so. Weak fundamentals combined with spurious activities are a sure shot recipe for disaster.

So when Paytm reported its latest results, everyone was all ears.

Here are five key takeaways from the fintech company's March quarter results.

  • During the March quarter, Paytm's net loss widened to Rs 7.6 bn compared to a loss of Rs 4.4 bn in the same quarter last year.

    Loss widened despite the company reporting a massive jump in revenues.
  • Paytm's revenue from operations came in at Rs 15.4 bn as compared to revenues of Rs 8.2 bn reported a year ago. This translates into a growth of 89%.

    According to the exchange filing, the increase in merchant payments processed through MDR bearing instruments (Paytm Wallet, Paytm bank account, cards, etc.) and disbursements of loans through partners on the platform were the key revenue drivers.
  • For fiscal 2022, Paytm posted a loss of Rs 24 bn against a loss of Rs 17 bn in fiscal 2021.

    Revenues during the same period stood at Rs 49.7 bn, up 77% from the previous year.
  • Paytm's gross merchandise value (GMV) stood at Rs 2.6 tn for the quarter, a growth of 104% YoY. GMV is the rupee value of total payments made to merchants through transactions on Paytm's app.
  • Paytm is hoping to be back on track to break even at the EBITDA level by the end of the second quarter of fiscal 2023.

    According to the filing, this will be driven by continued revenue growth, along with moderation in costs as operating leverage kicks in.

Ahead of its results, Paytm share price ended the day 3.9% higher on the BSE at Rs 575.35.

Paytm has been among 2022's worst performing stocks, having plunged 57% so far in 2022.

Have a look at the chart below which shows the company's turbulent performance since listing.

chart

When Paytm came out with its IPO, Co-head of Research at Equitymaster Tanushree Banerjee explained with a detailed analysis why you should avoid the Paytm IPO.

Since you're interested in tracking results, check out our editorials on ITC's earnings and Dr Reddy's Lab March quarter results.

About Paytm

Paytm is one of the largest fintech companies in India.

Incorporated in 2010, Paytm is a digital platform that offers all the financial services one could imagine from insurance to equity broking.

It's the most popular payments app in the country with more than 300 m registered users and 21 m merchants as of March 2021.

For more details, check out Paytm's factsheet and quarterly results.

You can also compare Paytm with its tech peers on our website.

Paytm vs Nykaa

Paytm vs PolicyBazaar

Paytm vs Zomato

Here are Links to Some Very Insightful Equitymaster Articles and Videos on Paytm:

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

Yellow Ad

Advertisement

Revealed: The 5-Minute Blueprint for Potentially Becoming a One Stock Crorepati

At our One Stock Crorepati mega summit, Richa revealed the 5-minute blueprint for potentially becoming a One Stock Crorepati.

Richa also revealed the 3 traits of what she calls a potential crorepati stock.

Plus...she also revealed details of a tiny company that has all these 3 traits.

You too had signed-up for Richa's summit. But you missed it for some reason.

No worries. You can still watch the special replay of the summit to get all these details.

Learn more

Equitymaster requests your view! Post a comment on "5 Takeaways from Paytm's Q4 Results". Click here!

  

More Views on News

From Paytm to Reliance Power: Big IPOs with the Worst Debut Day Performance (Views On News)

Nov 22, 2021

Paytm's flop show should not come as a surprise. This is not the first time a high-profile IPO has eroded investors' wealth on listing day.

Paytm Disappoints Investors. Stock Lists at 9% Discount (Views On News)

Nov 18, 2021

India's biggest IPO, Paytm hit a low of Rs 1,586 post listing, wiping out more than one-fourth of investors' wealth in only a few minutes of trading.

Are Zomato, Paytm, and Nykaa 'Priced to Perfection' Despite the Recent Sell-off? (Views On News)

Feb 24, 2022

Amid a massive selloff across the global markets, new age tech stocks have been hammered. Is this the right time to invest?

My Top Penny Stocks in this Market podcast (Views On News)

Jul 3, 2022

Rahul Shah on how to find the best penny stocks in this market.

How Modi's Big Schemes Could Trigger Surges in Specific Stocks (Views On News)

Jul 2, 2022

While critics and crusaders debate over whether the Modi led governments flagship schemes have been successful or not, one thing is crystal clear. Certain sectors and stocks have benefited immensely from these schemes and will continue to do so in the coming years.

More Views on News

Most Popular

What Is Ebitda & Eps

Here's a breakdown of what EBITDA margin means and why it is important as a valuation metric for investors.

The One Smallcap Stock I'll Recommend Now (Profit Hunter)

Jun 21, 2022

This aspect of investing has a very high weightage on your overall returns, but often gets ignored when winning stories are written.

5 Consistent Compounding Stocks Available at Discount. Time to Buy? (Views On News)

Jun 22, 2022

The good side of a market correction? Investors get consistent compounding stocks at a discount.

Wait! Don't Buy the Smallcap 'Dip' Just Yet (Profit Hunter)

Jun 20, 2022

Why this may not be the best time to buy smallcaps.

Looking for Value Stocks Amid Volatile Times? Consider These 5 Stocks (Views On News)

Jun 20, 2022

These value stocks have the potential to deliver good returns in the long run. Watch out for them.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

PAYTM SHARE PRICE


Jul 1, 2022 (Close)

TRACK PAYTM

PAYTM - INDIAMART INTERMESH COMPARISON

COMPARE PAYTM WITH

MARKET STATS