{"id":129847,"date":"2022-05-23T05:45:53","date_gmt":"2022-05-23T09:45:53","guid":{"rendered":"https:\/\/44.250.171.167\/?p=129847"},"modified":"2022-10-06T03:21:49","modified_gmt":"2022-10-06T07:21:49","slug":"one97-communication-ltd-q4-fy22-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/one97-communication-ltd-q4-fy22-earnings-conference-call-insights\/","title":{"rendered":"One97 communication Ltd Q4 FY22 Earnings Conference Call Insights"},"content":{"rendered":"<p><iframe loading=\"lazy\" title=\"One97 communication Ltd Q4 FY22 Earnings Concall\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/OgwfSOow4ZE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><strong>Key highlights from One97 communication Ltd (<a href=\"https:\/\/44.250.171.167\/symbol\/PAYTM\/\">PAYTM<\/a>) Q4 FY22 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>PAYTM said that in payments, which is the company\u2019s primary bet, it will be able to earn all its cost and achieve EBITDA contribution standalone for payment also.<\/li>\n<\/ul>\n<ul>\n<li>PAYTM said it will be delivering operating profitability (EBITDA before ESOPS and costs) by Sept. 2023 quarter.<\/li>\n<\/ul>\n<ul>\n<li>PAYTM expects it marketing costs to remain high in 1Q23.<\/li>\n<\/ul>\n<ul>\n<li>PAYTM\u2019s Employee cost were up 64% YonY in 4Q22 and 51% YonY in FY22 due to significant investments in FY22 in the sales team for merchant acquisition and in technology teams. The company doesn\u2019t expect its headcount to grow up going forward.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>Sachin Salgaonkar of Bank of America asked about how much more room is there in terms of optimization of payment processing charges going forward. Madhur Deora CFO said that the company expects this as a percentage of revenue and as a percentage of GMV to continue to improve due to transaction rates getting better and transaction mix continues to improve in PAYTM favor.<\/li>\n<\/ul>\n<ul>\n<li>Sachin Salgaonkar of Bank of America asked about the impact of ban on payments bank for acquiring new customers by RBI. Bhavesh Gupta CEO Lending Business said the process the regulator has laid out for the bank is working in a time bound manner and in 3-5 months the process hopefully should get over. Also, there is no impact on existing customers. Only new wallets and new CASA accounts is not allowed currently, for which the impact is marginal.<\/li>\n<\/ul>\n<ul>\n<li>Bhavik Dave at Nippon India enquired about the kind of govt. reimbursements it would have got. Madhur Deora CFO said the reimbursement was received in FY22 for each of the quarters. A small amount came in 4Q22, but the number cannot be disclosed but it was immaterial to the revenue trend.<\/li>\n<\/ul>\n<ul>\n<li>Saurabh Kumar of JPMorgan asked about indirect expenses and guidance of employee cost not going up materially, for FY23 if the number will be similar to 4Q22 annualized. Madhur Deora CFO said the guidance was for employee headcount but there might be some uptake on employee cost in terms of increments etc. On indirect expense growth, PAYTM expects it to moderate across the board.<\/li>\n<\/ul>\n<ul>\n<li>Piran Engineer of CLSA asked about the revenue from services to merchants, what\u2019s the mix of subscription and payments related revenues. Madhur Deora CFO replied that PAYTM charges INR125 for its Soundbox and it goes up for various types of devices. On avg. it\u2019s about INR150-175 a device, depending on the mix, perhaps INR200 a device.<\/li>\n<\/ul>\n<ul>\n<li>Piran Engineer of CLSA also asked since total GMV is slightly up 3-4%, if it means bill payments by consumers on the app is up meaningfully QoQ. Madhur Deora CFO answered that PAYTM\u2019s consumer engagement, essentially bill payments, on its app transactions GMV revenue did see a very sizable improvement in 4Q22.<\/li>\n<\/ul>\n<ul>\n<li>Nilang Mehta from HSBC asked about merchant loans, what percentage of these are digitally sourced or if there are physical sourcing for merchant loans. Vijay Sharma MD &amp; CEO answered that the company has zero physical engagement for any of its loans.<\/li>\n<\/ul>\n<ul>\n<li>Sumeet Kariwala of Morgan Stanley asked about wallets getting interoperable, if there is any decision on the interchange MDR. Vijay Sharma MD said that it was supposed to be operational from April 1. There is some delay in network to get alignment on tech specs etc. PAYTM expects this to be operational soon. The commercial alignment broadly has been achieved.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from One97 communication Ltd (PAYTM) Q4 FY22 Earnings Concall Management Update: PAYTM said that in payments, which is the company\u2019s primary bet, it will be able to earn all its cost and achieve EBITDA contribution standalone for payment also. PAYTM said it will be delivering operating profitability (EBITDA before ESOPS and costs) by [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,1],"tags":[1792,8590],"class_list":["post-129847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-finance-stocks","tag-financial-services","tag-payment-services"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":140352,"url":"https:\/\/alphastreet.com\/india\/one97-communication-ltd-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":129847,"position":0},"title":"One97 communication Ltd Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"February 7, 2023","format":false,"excerpt":"Key highlights from One97 communication Ltd (PAYTM) Q3 FY23 Earnings Concall Q&A Highlights: [00:24:47] Manish Adukia with Goldman Sachs enquired if it is safe to assume that PAYTM will reach FCF profitability starting 4Q23, and are double-digit EBITDA margins possible by FY24 end. Madhur Deora CFO said that Q4 UPI\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":135742,"url":"https:\/\/alphastreet.com\/india\/infographic-one97-communications-ltd-nse-paytm-q2-results-released-revenue-up-77-48-yoy\/","url_meta":{"origin":129847,"position":1},"title":"Infographic : One97 Communications Ltd.  (NSE : PAYTM) | Q2 Results Released! | Revenue UP 77.48% YoY","author":"Divyansh_Kasana","date":"November 8, 2022","format":false,"excerpt":"Paytm is India's payment Super App offering consumers and merchants most comprehensive payment services.Pioneer of mobile QR payments revolution in India, Paytm\u2019s mission is to bring half a billion Indians into the mainstream economy through technology-led financial Services. Paytm enables commerce for small merchants and distributes various financial services offerings\u2026","rel":"","context":"In &quot;Analysis&quot;","block_context":{"text":"Analysis","link":"https:\/\/alphastreet.com\/india\/category\/stock-analysis\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/d22292bd-8c57-4edc-aeb4-e9bb187bdddd.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/d22292bd-8c57-4edc-aeb4-e9bb187bdddd.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/d22292bd-8c57-4edc-aeb4-e9bb187bdddd.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/d22292bd-8c57-4edc-aeb4-e9bb187bdddd.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/d22292bd-8c57-4edc-aeb4-e9bb187bdddd.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/d22292bd-8c57-4edc-aeb4-e9bb187bdddd.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":132681,"url":"https:\/\/alphastreet.com\/india\/one-97-communications-ltd-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":129847,"position":2},"title":"One 97 Communications Ltd Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"August 9, 2022","format":false,"excerpt":"Key highlights from One 97 Communications Ltd (PAYTM) Q1 FY23 Earnings Concall Q&A Highlights: Sachin Salgaonkar of Bank of America asked about Soundbox monthly rental going down to zero and the monetization of it. Bhavesh Gupta CEO, Lending replied that on Soundbox, the rental going down to zero is not\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":129661,"url":"https:\/\/alphastreet.com\/india\/route-mobile-ltd-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":129847,"position":3},"title":"Route Mobile Ltd Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 20, 2022","format":false,"excerpt":"https:\/\/youtu.be\/DPUR2ho0VZM Key highlights from Route Mobile Ltd (ROUTE) Q4 FY22 Earnings Concall Management Update: ROUTE said it posted its best quarterly revenue in 4Q. And added that heading into FY23, it\u2019s already witnessing very strong growth momentum and is confident of delivering at least 40% YonY growth in FY23. ROUTE\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":130714,"url":"https:\/\/alphastreet.com\/india\/titagarh-wagons-limited-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":129847,"position":4},"title":"Titagarh Wagons Limited Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"June 20, 2022","format":false,"excerpt":"https:\/\/youtu.be\/x0xDQ9_giw8 Key highlights from Titagarh Wagons Limited (TWL) Q4 FY22 Earnings Concall \u00a0 Management Update: TWL said the company backed the highest ever wagon order placed in the history of Indian Railways for a basic value of about INR7800 crore and a total value of INR9000 crore plus, taking the\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":131046,"url":"https:\/\/alphastreet.com\/india\/one97-communication-ltd-paytm-q4-fy22-earnings-concall-transcript\/","url_meta":{"origin":129847,"position":5},"title":"One97 communication Ltd (PAYTM) Q4 FY22 Earnings Concall Transcript","author":"Sahil","date":"May 21, 2022","format":false,"excerpt":"One97 communication Ltd\u00a0 (NSE:PAYTM) Q4 FY22 Earnings Concall dated May. 21, 2022 Corporate Participants: Vijay Shekhar Sharma -- Chairman, Managing Director and Chief Executive Officer Madhur Deora -- President & Group Chief Financial Officer Bhavesh Gupta -- Chief Executive Officer - Lending Business Analysts: Sachin Salgaonkar -- Bank of America\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"stock earnings conference call transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/129847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=129847"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/129847\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=129847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=129847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=129847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}