One97 Communications Ltd, the parent company which owns and operates the brand Paytm, had recorded a GMV of Rs 72,800 crore in the corresponding period a year ago.
Digital payments and financial services firm Paytm on Monday reported over two-fold rise in its gross merchandise value to about Rs 1,66,600 crore in the first two months of the third quarter of this fiscal, driven by a sharp uptick in loan disbursals.
One97 Communications Ltd, the parent company which owns and operates the brand Paytm, had recorded a GMV (gross merchandise value) of Rs 72,800 crore in the corresponding period a year ago.
However, even after reporting two-fold rise in GMV, the shares of of Paytm fell about 0.50 per cent on Monday. At 9:15 AM, Paytm’s share was trading at Rs 1,576.60 and it fell to rs 1,551 at 9:25. As of now viz 12;15 PM, the share is trading at Rs 1,560.70
Paytm refers to GMV as the value of total payments made to merchants through transactions on its app, through Paytm payment instruments or its payment solutions, over a period. It excludes any consumer-to-consumer payment services such as money transfers.
“Growth momentum in GMV continues in the first two months of the quarter, due to strong performance during the festive season, which continues post festive season," the company said in a regulatory filing.
The number of loans disbursed from the Paytm platform increased over four times to 27 lakh during the reported period, from 5.30 lakh a year ago.
The value of the loan disbursed increased by 375 per cent on a year-on-year (y-o-y) basis to Rs 13,200 crore ($178 million) in the first two months of the quarter from Rs 280 crore.
"We have seen across each of the lending products, i.e. Paytm Postpaid, Personal Loans and Merchant Loans. On November 26, 2021, we launched a new credit card in partnership with HDFC Bank, further to the announcement of our partnership in September 2021," the company said.
Paytm posted growth of 36 per cent in monthly transacting users (MTUs) at 6.32 crore during the reported period, from over 4.66 crore average MTUs in the first two months of the same quarter a year ago.
Meanwhile, check what brokerage houses had said about the Paytm share some days ago, according to a report published in The Economic Times.
Dolat Capital Market Pvt
The brokerage house had set a target price of Rs 2,500, which is 16 per cent higher than the company’s issue price
JM Financial
The investment company had given a sell rating to the Paytm shares.
Macquarie Capital Securities
The global investment firm had rated Paytm as underperforming with a target of Rs 1200.