Revenue from operations may grow 32% year-on-year, according to an average estimate of two brokerages. On a sequential basis, revenue may rise 8%.
Losses during the reporting period may narrow to Rs 280 crore, led by an improved operating performance.
Analysts expect operating profit for the third quarter to increase, driven by improvement in contribution margin on a sequential basis.
In the recent second quarter, Paytm posted a loss of Rs 290 crore, but revenue from operations improved 32% to Rs 2,519 crore.
Here’s what analysts expect from Paytm’s Q3 results
YES Securities
We assume 6% quarter-on-quarter growth in payments services to consumers, 12% quarter-on-quarter growth in payments services to merchants and 6% quarter-on-quarter growth in financial services and others.
We forecast payment processing charges (PPC) as a proportion of payments revenue to be at 54%, a metric that was 54% in the second quarter. We arrive at a total expenses (ex PPC) growth of 6% quarter-on-quarter, resulting in an EBITDA margin (ex-Other Income and after ESOP cost) of -8.3%, an improvement of 89 bps quarter-on-quarter.
Motilal Oswal
Expect healthy growth in total revenue. Expect decline in disbursements and GMV. Expect the number of subscription payment devices to grow.
Dolat
The quarter will see festive season-led strong payment’s business growth, while optimizing operational performance. Expect seasonally strong growth of 10.7% quarter-on-quarter in overall business. OPM loss to decline sequentially on continued cost management. Merchant device traction, updates on higher ticket-size loan distribution and new lender-partner additions would be key to watch.
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