One 97 Communications Ltd
Incorporated in 2000, One 97 Communications Ltd is India’s leading digital ecosystem for consumers as well as merchants. As of March 31, 2021, the company has a 333 million+ client base and 21 million+ registered merchants to whom it offers payment services, financial services, and commerce and cloud services.
Key Services
- Payments & Financial Services
- Commerce & Cloud Services
Shareholding Pattern
–PUBLIC GROUP
-PROMOTER GROUP
Financial Summary
| Particulars | March 2022 | March 2023 | March 2024 |
| Sales | 4,974 | 7,990 | 9,978 |
| Sales Growth % | 77.57% | 60.63% | 24.87% |
| Expenses | 7,358 | 9,634 | 10,921 |
| Operating Profit | -2,384 | -1,644 | -943 |
| OPM % | -48% | -21% | -9% |
| Net Profit | -2,396 | -1,776 | -1,422 |
| EPS in Rs | -36.90 | -28.02 | -22.30 |
Synopsis of Financials
- Quarter performance in line with expectations and operating metrics.
- Resilience and capability of Paytm’s product and services highlighted.
- Commitment to run a fully compliant business and return to profitable quarters soon.
- Targeting at least one profitable quarter in the current financial year.
- Focus on payments and cross-selling financial services as core business.
- Marketing services for helping merchants expand and sell more to consumers seen as a great opportunity.
- Operating break-even target without extraordinary one-time items.
- Focus on UPI incentives and aiming for EBITDA break-even before ESOP cost.
- Plans to resume new user acquisitions for UPI after completing technology and consumer migration.
- Merchant loan growth expected to be disciplined due to lender partners’ prudent policies.
Final Outlook
Paytm’s revenue from operations was ₹1,502 crore, a 36% decrease from the same quarter in 2023, when it was ₹2,342 crore. The company’s net loss also increased from ₹358 crore in Q1 2023 to ₹840 crore in Q1 2024.
If you will go through the 5 year chart then you will observe that paytm is not good for investment as it has been consistently declining and the RBI crackdown caused Paytm shares to plummet. A sharp decline in Paytm parent One97 Communications Ltd shares saw the company shed 36 percent from January 31 to February 2, 2024.
In November 2023, Berkshire Hathaway sold its residual 2.46 percent stake in Paytm (it had sold some stake during the company’s IPO in 2021) for ₹1,371 crore to Ghisallo Master Fund and Copthall Mauritius Investment.
RBI on January 31, 2024, asked Paytm Payments Bank Limited (PPBL) to stop offering banking services effective March 15, 2024, on the back of concerns of non-compliance with regulatory guidelines.
sales is growing but in a very decreasing rate which is stating that future revenue will not be impressive.
I will give sell recommendation for this stock.
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