Paytm could post 70% topline growth in December quarter
Digital payments and e-commerce business Paytm’s parent company One 97 Communications could post topline growth of 70% in FY22 Q3 and its market share should continue to grow, according to Goldman Sachs.
“Our analysis suggests Q3 [of the 2022 financial year] was another quarter of market share gains for Paytm in the payments vertical, a trend we expect to continue,” said brokerage firm Goldman Sachs in a note on January 30, ET Bureau reported.
“We forecast cash burn for Paytm to marginally improve sequentially, but expect higher reported Ebitda [earnings before interest, tax, depreciation, and amortisation] losses on account of increased ESOP [employee stock ownership plan] expenses.”
Paytm saw 64% growth in the second financial quarter of the 2022 financial year which ended in September, 2021. Paytm is scheduled to report its earnings for the third quarter on February 4.
“We believe Paytm remains well-positioned to capture share of digital payments in India and view Paytm’s business model as characterised by network effect,” said Goldman Sachs in its note.
“However, we note that competitive intensity across most of Paytm’s verticals is quite high, while the regulatory landscape across Paytm’s businesses is also fast evolving.”
Copyright © 2022 FashionNetwork.com All rights reserved.