The stock started the day lower as the company’s net loss for the March quarter widened to Rs 762.5 crore from a loss of Rs 444.4 crore in the corresponding quarter of the year. ‘Previous exercice.
As of 12:03 p.m. IST, Paytm shares were up 6.2% at Rs 610.90 on NSE. The stock hit an intraday low at Rs 552.
The company has reappointed Vijay Shekhar Sharma as Managing Director and Managing Director for five years, from December 19, 2022 to December 18, 2027. This reappointment, apart from announcing a 10-year investment of Rs 950 crore in insurance general, gives investors confidence on the trading outlook, said a fund manager.
Another factor that likely helped stocks rally is that Paytm Payments Bank, which facilitates transactions on Paytm, reportedly expects the Reserve Bank to allow it to resume taking on new customers in the coming months.
According to a regulatory filing, Paytm’s EBITDA loss continued to widen in the March quarter to Rs 716.6 crore from Rs 415.6 crore a year ago and Rs 710.6 in the March quarter. December 2021. However, the silver lining of the results was Paytm revenue, which soared 89% year-on-year to Rs 1,541 crore.
As announced in April 2022, Paytm has stated that it will break even by September 2023.
ICICI Securities, however, remains cautious and expects the company to have positive EBITDA by the fiscal year ending in March 2025. It has a call to buy on Paytm.
Macquarie said it could take 12 quarters for EBITDA losses to break even. The brokerage maintained its “underperforming” rating on Paytm, with a target price of Rs 450. Profitability remains an uphill battle for the mobile internet company, according to the brokerage.
Read also |
First post: STI