Fintech solutions provider One97 Communications, which operates popular payments platform Paytm, has seen strong growth in loan disbursements as it reaffirms its focus on maintaining a quality loan book.
The number of loans disbursed grew 224 per cent year-on-year to 9.2 million loans in the quarter ended September 2022, while the value of loans disbursed grew 482 per cent year-on-year to Rs 7,313, the company said in its quarterly update. crore (USD 894 million).
“We continue to see growth and upsell opportunities in this business while we work with our partners to focus on book quality,” the company said in a stock exchange filing Monday.
In the offline payments vertical, the company continues to consolidate its leadership position with the deployment of 4.8 million devices at merchant stores across the country.
“While management maintains its remarks to focus on book quality, growth remains strong. The H1FY23 loan disbursement of Rs 129 billion gives us the visibility that Paytm is able to surpass our estimates of Rs 239 billion in FY23E As per the ICICI Securities report seen by ANI.
“We anticipate quarter-on-quarter operating revenue growth, with increasing GMV and lending business as well as some growth in commerce and cloud business,” ICICI Securities said in the report.
Kunal Shah, an analyst at ICICI Securities, said in the report that the company’s debt disbursement volume is expected to be 36.1 million in FY13, up from 17.7 million at the end of the first half.
The total number of loans disbursed in September and Q2FY23 stood at 3.2 million and 9.2 million respectively as against estimates of 8.8 million.
In September, the value of disbursed loans rose 15 per cent on a monthly basis to Rs 28 billion and 32 per cent and 482 per cent (QoQ/YoY) respectively at Rs 73.1 billion for Q2FY23, significantly higher than analysts’ estimates. ,
Shah of ICICI Securities said that this increase indicates an increasing trend in the average ticket size.
“The annual value of loan disbursements as on September 22 is estimated at Rs 340 billion and in the first half of FY23 at Rs 129 billion, while in FY23E is estimated at Rs 239 billion,” Shah of ICICI Securities said.