One97 Communications share price fell 4 percent in the early trade on May 23 after the company reported its March quarter earnings.
One97 Communications, the parent firm of Paytm, on May 20 reported a loss of Rs 762.5 crore for the March quarter of the financial year 2021-22 (Q4FY22).
The company had posted a loss of Rs 444.4 crore in the corresponding quarter of the previous fiscal.
The company's revenues from operations were up by 89 percent year-on-year, coming in at Rs 1,541 crore.
EBITDA loss before costs of employee stock options stood at Rs 368 crore, lower by Rs 52 crore from Q3FY21.
For the full year FY22, the company posted a loss of Rs 2,396 crore against a loss of Rs 1,701 crore in the previous fiscal. Revenues from operations for FY22 stood at Rs 4,974 crore, up 77% from FY21.
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Here is what brokerages have to say about stock and the company post March quarter earnings
Goldman Sachs
Research firm has maintained buy rating on the stock with a target at Rs 1,070 per share.
The Q4 exhibited another quarter of strong & improving monetisation of payments vertical as the growth momentum for financial services & cloud business remained robust.
The cash burn has been improving, while company reiterated its guidance of adjusted EBITDA breakeven by September 2023, reported CNBC-TV18.
Macquarie
Broking firm has maintained underperform rating on the stock with a target at Rs 450 per share.
The profitability still an uphill battle, while there was a marginal improvement in EBITDA losses and operating take rates are still weak.
The financial services business still sub-scale, however core business model uncertainties remains. It could take 12 quarters for EBITDA losses to break-even, reported CNBC-TV18.
At 09:29 hrs One 97 Communications Paytm was quoting at Rs 571.10, down Rs 4.25, or 0.74 percent on the BSE.
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