Paytm’s loan disbursements beat ICICI Securities’ estimates in the September quarter | Techno Glob

Paytm’s loan distribution business beats ICICI Securities’ estimates in Q2.

New Delhi:

Fintech solutions provider One 97 Communications, which operates popular payments platform Paytm, continues to demonstrate strong loan distribution growth as it focuses on maintaining a quality loan book.

The number of loans issued by the company grew by 224 percent to 9.2 million at the end of September 2022, while the value of loans increased by 482 percent to Rs 7,313 crore, the company said in its quarterly update. crore (USD 894 million).

“We continue to see growth and supply opportunities in this business as we work with our partners to remain focused on the quality of the book,” the company said in a stock exchange filing on Monday.

In the offline payments vertical; The company continues to strengthen its leadership position with 4.8 million devices deployed in merchant stores nationwide.

“While management maintained its comment on focusing on book quality, growth remains strong. H1FY23 loan issuance allows us to see Paytm exceed disbursements by around Rs 239 billion in 23E. According to an ICICI Securities report seen by ANI,

“With growth in GMV and loan distribution business along with some growth in trading and cloud business, operating income is expected to grow by 10 percent quarter-on-quarter,” ICICI Securities said in a report.

ICICI Securities analyst Kunal Shah said in a report that the company’s loan volume is expected to reach 36.1 million at the end of the first half, compared with 17.7 million at the end of the first half.

Total loans disbursed in September and Q2FY23 were estimated at 8.8 million, 3.2 million and 9.2 million respectively.

In September, the value of loans disbursed increased 15 percent to Rs 28 billion monthly, up 32 percent and 482 percent (QoQ/YoY), respectively, to Rs 73.1 billion respectively. .

ICICI Securities’ Shah said this growth indicates an increase in average ticket size.

“As of September 22, loan originations stood at Rs 340 billion, compared to estimates of Rs 129 billion in H1FY23 and Rs 239 billion in FY23E,” added Shah of ICICI Securities.

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