Earnings Outlook
Net losses of One97 Comm seen widening in Apr-Jun
This story was originally published at 20:46 IST on 16 July 2024
Register to read our real-time news.Informist, Tuesday, Jul 16, 2024
By Krity Ambey
NEW DELHI – The net loss of One97 Communications Ltd is likely to widen on account of the regulatory action against Paytm Payments Bank by the Reserve Bank of India. The consolidated net loss of Paytm's parent company is seen at 8.43 bln-10.13 bln rupees in Apr-Jun, according to estimates of three brokerages. If estimates are correct, this will be the eleventh consecutive quarter the company will report a net loss since listing on the exchanges in 2021.
One97 Communications reported a net loss of 5.50 bln rupees in Jan-Mar and 3.57 bln rupees a year ago. The company is scheduled to announce its earnings for the June quarter on Friday.
The consolidated revenue from operations of the company is seen in the range of 14.91 bln rupees to 15.50 bln rupees in Apr-Jun. The company's consolidated revenue from operations had fallen 2.9% on year to 22.67 bln rupees in the quarter ended March.
"Paytm is likely to take a full quarter business hit in Apr-Jun, which coupled with the absence of Unified Payments Interface incentives is likely to push it into higher earnings before interest, taxes, depreciation, and amortisation loss," Emkay Global Financial Services Ltd said in its report.
The Reserve Bank of India imposed operational restrictions on Paytm Payments Bank in January owing to continued non-compliance with regulations and significant supervisory concerns. The move has impacted the company's other operations, including the widely used UPI application, Paytm.
Due to the regulatory measure, One97 Communications had to provide 2.27 bln rupees for the Payments Bank as an impairment provision in the quarter ended March. The company's management expects the revenues to improve in Jul-Sep quarter, they had said in May.
Today, shares of One97 Communications ended 2% down at 460.30 rupees on the National Stock Exchange. The company's share price has fallen 39.5% since the RBI action.
Following are the Apr-Jun earnings estimates of One97 Communications based on reports compiled by Informist from three brokerage houses:
| Brokerage firm | Net Sale (in mln rupees) | Net Profit(in mln rupees) |
| Motilal Oswal Financial Services Ltd | 14,911.00 | (-)8,431.00 |
| Emkay Global Financial Services | 15,501.00 | (-)9,865.00 |
| Yes Securities (India) Ltd | 15,317.00 | (-)10,127.00 |
End
Edited by Saji George Titus
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
