New Delhi: India’s digital payments giant Paytm will be scrutinized on Saturday as it reports its earnings in the wake of its record initial public offering and turbulent stock market debut.
Prior to the result, Paytm shares fell 7.7% in early Mumbai trading on Friday. Equities have surged about 32% in the last three days, but are well below the price set in the $ 2.5 billion IPO as investors continue to look at the long-term outlook.
Ruchit Jain, Head of Research for listed discount broker 5paisa.com, said: “Although losses have decreased, none of the business segments such as payments, consumer loans and insurance sales show signs of profitability.”
According to Jane, the focus will be on which segments are starting to make more money and how the company is leveraging its customer base to cross-sell more products.
Despite the challenges, Paytm supporters include Warren Buffett’s Berkshire Hathaway Inc. and Masayoshi Son’s SoftBank Group Corporation. BlackRock Inc. and the Canadian Pension Plan Investment Board were one of the so-called anchor investors in the IPO who bought more shares on Tuesday and Wednesday. According to people who are familiar with the problem.
Chakri Lokapriya, Chief Investment Officer of TCG Advisory Services, said: “About 75% of our business is digital payments, which is currently a highly competitive segment and the challenge is to retain customers.”
Lokapriya said he is looking for new customers and merchants in Paytm and is keeping up to date with new businesses and initiatives to improve “customer stickiness” and push loans and insurance products. ..
Paytm said in a post-debut exchange declaration that in October, a significant time prior to the Diwali holidays, total commodities reached Rs 83,200 ($ 11.2 billion), up 131% year-on-year. It also executed 1.3 million loans and deployed 1 million additional merchant devices.
This is Macquarie Capital Securities (India) Pvt. Couldn’t make an impression on. MacquarieCapitalSecurities (India) Pvt. Said that it made a conservative call to stock prices and that the new details did not have a substantial impact on P & L estimates.
Following Paytm’s quarterly and semi-annual results announcements on Saturday, financial results will be announced at 6 pm.