Paytm’s Loan Distribution Business Exceeds ICICI Securities Estimates in Q2

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Fintech solutions provider One 97 Communications, which operates the popular payment platform Paytm, continues to record robust loan distribution growth as it reiterates its focus on maintaining a quality loan portfolio. The company, in its quarterly update, said the number of loans disbursed increased 224% year-on-year to 9.2 million loans in the quarter ended September 2022, while the value of loans disbursed had increased by 482% year-on-year to reach 7,313 rupees. crore ($894 million).

“We continue to see growth and upsell opportunities in this business as we work with our partners to remain focused on book quality,” the company said in a stock filing Monday. In the offline payments vertical, the company continues to strengthen its leadership position with the deployment of 4.8 million devices in merchant stores across the country.

“While management has maintained its comment on the focus on book quality, growth continues to be strong. H1FY23 loan disbursements of Rs 129 billion give us visibility that Paytm would be able to exceed our estimates of Rs 239 billion disbursements in FY23E,” according to a report by ICICI Securities viewed by ANI. “With increased GMV and lending distribution activity along with some increase in commerce and cloud activity, we estimate operating revenue growth of 10% quarter-over-quarter,” ICICI Securities said in the report.

Kunal Shah, an analyst at ICICI Securities, said in the report that the company’s loan disbursement volume is expected to be 36.1 million in FY23, up from 17.7 million at the end of the first half. The total number of loans disbursed in September and Q2FY23 were 3.2 million and 9.2 million, respectively, against an estimate of 8.8 million.

In September, the value of loans disbursed increased by 15% month-on-month to reach 28 billion rupees and 32% and 482% (Q2/YoY) respectively for Q2FY23 to 73.1 billion rupees, which is significantly higher than the analyst’s estimates. . ICICI Securities’ Shah said the growth indicates an upward trend in the average note size.

“The annualized value of loan disbursements stands at 340 billion rupees as of September 22 and the disbursement value of S1FY23 is 129 billion rupees against our estimate of 239 billion rupees for the financial year 23E,” Shah added. of ICICI Securities. (ANI)

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)

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