Goal: ₹1,250
CMP: ₹853.20
One97 Communications (Paytm) reported ₹1,830 crore in Q3FY25 income (+10 per cent q-o-q) pushed by sustained rise in Funds GMV (+13 per cent q-o-q) together with a sharper development in monetary companies pushed by increased take-rates in service provider mortgage disbursals (16 per cent q-o-q).
Take-rate in monetary companies improved 188 bps sequentially majorly because of: about 80 per cent of service provider mortgage disbursals (₹3,100 crore) shifting to FLDG; increased mixture of service provider loans; and assortment efficiencies driving increased incentives on these service provider loans. Private Loans dipped 12 per cent q-o-q with continued stress being seen whereas service provider loans rose 16 per cent q-o-q pushed by pent-up demand.
Advertising companies income declined 12 per cent sequentially (flat excluding Occasions Ticketing enterprise). With front-ended DLG price being parked underneath different direct bills, the corporate reported 130bps sequential dip in contribution margin.
Nevertheless, continued tight management on oblique bills ensured Adj. EBITDA lack of ₹40.5 crore, enchancment of ₹150 crore q-o-q.
Going ahead, we count on the impression of DLG price to normalise with CM reverting again in direction of 55 per cent (excluding UPI incentives) and the corporate reporting PAT profitability subsequent quarter, because of UPI incentives value ₹350 crore.
