Shares of One97 Communications tumbled 2.3% to their day’s low of Rs 709.45 on the BSE in an early trading session as the company will announce its results for the quarter ended September later today.Analysts expect the digital payments major to clock higher revenue growth during the second quarter, but the losses may widen.Losses for the July-September 2024 period are likely to widen up to Rs 660 crore from Rs 290 crore in the same period of last year. Meanwhile, revenue from operations are seen growing up to 16% year-on-year.However, on a sequential basis, losses should shrink from Rs 838 crore clocked in the preceding June quarter. This sequential improvement will mainly be driven by growth in payment services to merchants and financial services business.Revenues too could increase up to 8% quarter-on-quarter."Expect operating profitability to improve. Expect disbursements and GMV to increase sequentially. Expect total revenue growth to improve. Any further impact of the RBI notification to be a key monitorable," Motilal Oswal said.Segment wise, YES Securities is assuming -2% QoQ de-growth in Payments Services to Consumers along with 10% QoQ growth in Payments Services to Merchants and 10% QoQ growth in Financial Services and Others. This could bring Paytm's overall growth in revenue from operations to 8% QoQ."We forecast Payment Processing Charges (PPC) as a proportion of Payments Revenue to be at 57.0%, a metric that was 58.5% in 1QFY25. We arrive at a Total Expenses (ex PPC) de-growth of -4% QoQ, compared with a growth of 0.1% in 1QFY25, resulting in an EBITDA margin (ex Other Income and after ESOP cost) of -39.1%, an improvement (lower negative) of -1,363 bps QoQ," the brokerage said.In the June quarter, Paytm widened its losses to Rs 838 crore versus Rs 357 crore in the corresponding quarter of the previous financial year.
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